BlackBerry Ltd (BB) 2024 Q1 法說會逐字稿

Good afternoon, and welcome to the BlackBerry First Quarter Fiscal Year 2024 Results Conference Call. My name is Andrea, and I will be your conference moderator for today's call. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.

下午好，歡迎參加 BlackBerry 2024 財年第一季度業績電話會議。我叫安德里亞，我將擔任今天電話會議的會議主持人。 （操作員說明）謹此提醒，本次會議正在錄製以供重播之用。

I would now like to turn today's call over to Tim Foote, Vice President of BlackBerry Investor Relations. Please go ahead.

我現在想將今天的電話轉給黑莓投資者關係副總裁 Tim Foote。請繼續。

Thank you, Andrea. Good afternoon, and welcome to BlackBerry's First Quarter 2024 Earnings Conference Call. With me on the call today are Executive Chair and Chief Executive Officer, John Chen; and Chief Financial Officer, Steve Rai.

謝謝你，安德里亞。下午好，歡迎參加 BlackBerry 2024 年第一季度收益電話會議。今天與我一起參加電話會議的是執行主席兼首席執行官 John Chen；和首席財務官史蒂夫·雷。

After I read our cautionary note regarding forward-looking statements, John will provide a business update and Steve will review the financial results. We will then open the call for a brief Q&A session.

在我閱讀有關前瞻性陳述的警告說明後，約翰將提供業務更新，史蒂夫將審查財務業績。然後我們將開始簡短的問答環節。

This call is available to the general public via call-in numbers and via webcast in the Investor Information section at blackberry.com. A replay will also be available on the blackberry.com website.

公眾可通過撥入號碼和 blackberry.com 投資者信息部分的網絡廣播收聽此電話會議。 blackberry.com 網站上也將提供重播。

Some of the statements we'll be making today constitute forward-looking statements and are made pursuant to the safe harbor provisions of applicable U.S. and Canadian securities laws. We'll indicate forward-looking statements by using words such as expect, will, should, model, intend, believe and similar expressions. Forward-looking statements are based on estimates and assumptions made by the company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors that the company believes are relevant. Many factors could cause the company's actual results or performance to differ materially from those expressed or implied by the forward-looking statements. These factors include the risk factors that are discussed in the company's annual filings and MD&A. You should not place undue reliance on the company's forward-looking statements. Any forward-looking statements are made only as of today, and the company has no intention and undertakes no obligation to update or revise any of them, except as required by law.

我們今天將發表的一些聲明構成前瞻性聲明，並根據適用的美國和加拿大證券法的安全港條款做出。我們將使用期望、意願、應該、模型、打算、相信和類似表達等詞語來表示前瞻性陳述。前瞻性陳述基於公司根據其經驗和對歷史趨勢、當前狀況和預期未來發展的看法以及公司認為相關的其他因素做出的估計和假設。許多因素可能導致公司的實際結果或業績與前瞻性陳述明示或暗示的結果或業績存在重大差異。這些因素包括公司年度文件和 MD&A 中討論的風險因素。您不應過分依賴公司的前瞻性陳述。任何前瞻性陳述僅截至今日作出，公司無意且不承擔更新或修改任何前瞻性陳述的義務，除非法律要求。

As is customary during the call, John and Steve will reference non-GAAP numbers in our summary of our quarterly and full year results. For a reconciliation between our GAAP and non-GAAP numbers, please see the earnings press release published earlier today, which is available on the EDGAR, SEDAR and blackberry.com websites.

按照電話會議期間的慣例，約翰和史蒂夫將在我們的季度和全年業績摘要中引用非 GAAP 數據。有關我們的 GAAP 和非 GAAP 數據之間的調節，請參閱今天早些時候發布的收益新聞稿，該新聞稿可在 EDGAR、SEDAR 和 blackberry.com 網站上獲取。

And with that, I'll turn the call over to John.

然後，我會將電話轉給約翰。

Thanks, Tim. Good afternoon, everybody, and thanks for joining the call today.

謝謝，蒂姆。大家下午好，感謝您今天加入電話會議。

Let me start with the IoT business unit. Revenue for the quarter was $45 million and gross margin remained strong at 80%.

讓我從物聯網業務部門開始。該季度收入為 4500 萬美元，毛利率保持在 80% 的強勁水平。

Revenue came in lower than expected for 2 main reasons. The first related to a number of leading industry players that are revising their development plans as they step up their software-defined vehicle efforts. This has caused some programs to be delayed. While seeing our customer facing a higher priority on the SDD transition is a good thing for both QNX and IVY, the delayed rollout of QNX development seat license has, therefore, pushed out revenue this quarter. This was purely a timing issue. As we have outlined in the pass, from quarter-to-quarter, design phase revenues will fluctuate depending on the timing of large design awards and when the work begins. However, we haven't seen any weakening of the strong secular trends driving the business. We remain confident in our ability to win new designs.

收入低於預期有兩個主要原因。第一個與許多領先的行業參與者有關，他們正在修改其開發計劃，以加強其軟件定義汽車的努力。這導致一些計劃被推遲。雖然看到我們的客戶在 SDD 過渡方面面臨更高的優先級對於 QNX 和 IVY 來說都是一件好事，但 QNX 開發席位許可證的延遲推出因此推高了本季度的收入。這純粹是一個時間問題。正如我們在通行證中概述的那樣，從季度到季度，設計階段的收入將根據大型設計獎項的時間和工作開始的時間而波動。然而，我們並沒有看到推動業務的強勁長期趨勢有任何減弱。我們對贏得新設計的能力仍然充滿信心。

The second factor is the macro environment, which has impacted some regional production volumes and with it, royalty revenues. As has been the case in recent quarters, the impact appears to be mixed across OEMs and geographies. While production in China in the early part of this year was much softer than expected, elsewhere in North America, Europe, Japan and Korea, output continues to look relatively steady, helped, of course, by an easing of supply side constraints. We will closely monitor the situation and assess for any potential impact for the year. And at this time, we continue to expect to achieve the full year revenue consensus for IoT.

第二個因素是宏觀環境，它影響了一些地區的產量以及特許權使用費收入。與最近幾個季度的情況一樣，原始設備製造商和地區之間的影響似乎參差不齊。儘管今年年初中國的產量遠低於預期，但北美其他地區、歐洲、日本和韓國的產量看起來仍然相對穩定，當然這得益於供應方限制的放鬆。我們將密切關注事態發展並評估今年的潛在影響。目前，我們繼續期望實現物聯網全年收入共識。

Further, we are reiterating the 18% to 22% 3-year revenue CAGR that we provided at our Analyst Day last month. These targets are based on a number of factors, including our strong QNX backlog, which we reported as being $640 million at last fiscal year-end; our pipeline of upcoming potential design wins; and our assessment of ongoing secular trends.

此外，我們重申上個月分析師日提供的 18% 至 22% 的 3 年收入複合年增長率。這些目標基於多種因素，包括我們強大的 QNX 積壓訂單，我們報告上一財年末的積壓金額為 6.4 億美元；我們即將贏得的潛在設計的管道；以及我們對持續長期趨勢的評估。

A data point that illustrate those trends and our leadership position in the market is our annual vehicle count. PAC Insight, a leading technology analysis and market research firm, has published that QNX is now embedded in over 235 million vehicles, a year-on-year net increase of $20 million or 9%. When compared to annual global vehicle production, this supports a growing market share for QNX.

說明這些趨勢和我們在市場中的領導地位的一個數據點是我們的年度車輛數量。領先的技術分析和市場研究公司 PAC Insight 公佈，QNX 目前已嵌入超過 2.35 億輛汽車中，同比淨增長 2000 萬美元，增幅為 9%。與全球年汽車產量相比，這支持 QNX 不斷增長的市場份額。

QNX remains the foundational software of choice for leading automakers and Tier 1 suppliers around the growth as we continue to add new design wins. In the quarter, QNX has 7 design wins in auto and 7 in general embedded market verticals.

隨著我們不斷增加新的設計成果，QNX 仍然是領先汽車製造商和一級供應商圍繞增長所選擇的基礎軟件。本季度，QNX 在汽車領域贏得了 7 項設計，在一般嵌入式市場垂直領域贏得了 7 項設計。

In auto, we continue to secure design wins in the digital cockpit domain. This fast-growing domain has largely led the way in consolidating various software stacks onto a single high-power chip in the car. This quarter, we recorded wins with 2 of the top 5 global automakers. The first win includes our real-time operating systems as well as our Hypervisor and acoustic middleware. The second win will deploy 2 instances of QNX supporting the digital cockpit and main body domain, both running on high-performance compute engines. We also secured win of a leading U.S.-based EV automaker, with multiple instances of QNX being deployed. QNX, in that case, will support a zonal and central compute architecture including the digital cockpit and the vehicle telematics. These wins demonstrate how we expanded both the number of domains deploying QNX and the number of layers of QNX deploy in each of the domain.

在汽車領域，我們繼續在數字駕駛艙領域取得設計勝利。這個快速增長的領域在很大程度上引領了將各種軟件堆棧整合到汽車中的單個高功率芯片上的方式。本季度，我們與全球前 5 名汽車製造商中的 2 家取得了勝利。第一個勝利包括我們的實時操作系統以及我們的虛擬機管理程序和聲學中間件。第二場胜利將部署 2 個支持數字駕駛艙和主體域的 QNX 實例，它們都運行在高性能計算引擎上。我們還贏得了一家美國領先的電動汽車製造商的青睞，並部署了多個 QNX 實例。在這種情況下，QNX 將支持區域和中央計算架構，包括數字駕駛艙和車輛遠程信息處理。這些勝利展示了我們如何擴大部署 QNX 的域數量以及每個域中部署的 QNX 層數。

Outside of auto, we recorded wins supporting a range of different applications. In industrial, we secured an ADAS platform for heavy industry machinery that requires both our Hypervisor and OS for Safety. We also secured wins for industrial testing and control, including a next-generation controller for use in marine and aerospace applications, and a win with a leading global household appliance manufacturer for production line testing equipment. In medical, wins in medical eye laser equipment with a leading surgical technology manufacturer. These designs and operational technologies, like medical and industrial, demonstrate our ability to win in this very large and growing market. These verticals are showing similar trends to auto, including significantly higher compute at the edge and the need for complex, safety-critical software stacks, which is where QNX is the market leader.

在汽車之外，我們還取得了支持一系列不同應用程序的勝利。在工業領域，我們為重工業機械提供了一個 ADAS 平台，該平台需要我們的虛擬機管理程序和安全操作系統。我們還贏得了工業測試和控制方面的勝利，包括用於海洋和航空航天應用的下一代控制器，以及與一家全球領先的家用電器製造商在生產線測試設備方面的勝利。在醫療領域，與領先的手術技術製造商合作，贏得了醫用眼科激光設備的勝利。這些設計和操作技術，如醫療和工業技術，展示了我們在這個非常龐大且不斷增長的市場中獲勝的能力。這些垂直行業顯示出與汽車類似的趨勢，包括顯著提高邊緣計算能力以及對複雜、安全關鍵軟件堆棧的需求，而這正是 QNX 成為市場領導者的領域。

On the product front, last month, we announced the early access release of our next-generation kernel. This is a significant step change for QNX. The new release helps deliver significantly higher performance in particularly scaling almost linearly as the number of cores on the underlying chip increase up to 64 cores. While safety and reliability are essential parts of the QNX value proposition, it is also our leading performance in complex compute stack that helps differentiate us from our competitors. This release will position QNX to support the future of rapidly increasing compute power at the edge for many years to come.

在產品方面，上個月，我們宣布了下一代內核的早期訪問版本。這對 QNX 來說是一個重大的改變。新版本有助於提供顯著更高的性能，特別是隨著底層芯片上的核心數量增加到 64 個核心，幾乎呈線性擴展。雖然安全性和可靠性是 QNX 價值主張的重要組成部分，但我們在復雜計算堆棧方面的領先性能也幫助我們從競爭對手中脫穎而出。此版本將使 QNX 能夠支持未來許多年邊緣計算能力快速增長的未來。

Moving on to IVY. As planned, we have now released a general availability version of IVY. This is a much more stand-alone version of the product than before, requiring far less support from the IVY technical team. We see this as a significant step forward for scaling our go-to-market efforts, allowing us to support a much wider range of proof-of-concept trials than before.

繼續前往常春藤。按照計劃，我們現已發布了 IVY 的通用版本。這是一個比以前更加獨立的產品版本，需要的 IVY 技術團隊的支持也少得多。我們認為這是擴大我們的市場推廣工作向前邁出的重要一步，使我們能夠支持比以前更廣泛的概念驗證試驗。

We are making good progress with building the IVY ecosystem, an important part of the overall value proposition. This past quarter, we announced an investment in the Michigan-based CerebrumX. Ford, Stellantis and Toyota are all currently working with CerebrumX, and they offer AI-driven solutions that analyze vehicle data on driver behavior and vehicle health. They harness this data to deliver application such as fleet management and personalized insurance plan. IVY end-to-end edge-to-cloud platform will provide CerebrumX with higher quality, easier-to-use data in a standardized development environment.

我們在建設 IVY 生態系統方面取得了良好進展，這是整體價值主張的重要組成部分。上個季度，我們宣布對總部位於密歇根州的 CerebrumX 進行投資。福特、Stellantis 和豐田目前都在與 CerebrumX 合作，他們提供人工智能驅動的解決方案，分析有關駕駛員行為和車輛健康狀況的車輛數據。他們利用這些數據來提供車隊管理和個性化保險計劃等應用程序。 IVY端到端邊緣到雲平台將在標準化開發環境中為CerebrumX提供更高質量、更易於使用的數據。

We also announced a go-to-market partnership with a leading automotive cybersecurity firm, Upstream Security. Upstream Security partners with BMW, Volvo and Renault as they are already protecting over 20 million vehicles against cyber attacks with their VDR, stands for vehicle detection and response, platform. This new partnership with BlackBerry will allow them to leverage IVY's edge capabilities to preprocess data in near-real time, maintaining cybersecurity while significantly reducing cloud overhead.

我們還宣布與領先的汽車網絡安全公司 Upstream Security 建立市場合作夥伴關係。 Upstream Security 與寶馬、沃爾沃和雷諾合作，他們已經通過 VDR（車輛檢測和響應平台）保護超過 2000 萬輛車輛免受網絡攻擊。與黑莓的新合作夥伴關係將使他們能夠利用 IVY 的邊緣功能近乎實時地預處理數據，維護網絡安全，同時顯著降低雲開銷。

The strategic decision by BlackBerry and AWS to develop a primarily edge-based architecture is proven to be the right call, especially as some cloud-only players such as [Regil] and Autonomo has struggled to achieve profitability.

黑莓和 AWS 開發主要基於邊緣的架構的戰略決策被證明是正確的選擇，特別是在 [Regil] 和 Autonomo 等一些純雲廠商一直在努力實現盈利的情況下。

Turning now to the cybersecurity units. Revenue for the quarter was $93 million, representing 6% sequential growth. Like many others in this market, we've also seen delays from elongated sales cycles, with additional layer of approval compared to previous quarter slowing our ability to convert our growing pipelines into revenue.

現在轉向網絡安全部門。該季度收入為 9300 萬美元，環比增長 6%。與這個市場上的許多其他公司一樣，我們也看到了銷售週期延長帶來的延遲，與上一季度相比，額外的審批層降低了我們將不斷增長的渠道轉化為收入的能力。

That said, a leading indicator for revenue for this business is billings. And this quarter, we booked total contract value, or TCV, billings of $122 million, significantly higher than revenue for the second consecutive quarter. TCV billing grew for the fourth consecutive quarters with 14% sequentially and 3-7, 37% year-on-year growth. This growth was anchored on multiyear deals in our core government vertical where we continue to have a lot of success. In the quarter, we closed one of the deals that slipped from Q4, with the other 2 still progressing well and likely to close later in the year. We also see 2 new large potential deals in government that have entered the pipeline. Given this pipeline and billings momentum, we expect to achieve full year revenue consensus and expect TCV billings for the year to be in the range of $430 million to $480 million.

也就是說，該業務收入的領先指標是賬單。本季度，我們的合同總價值 (TCV) 為 1.22 億美元，連續第二個季度顯著高於收入。 TCV 賬單連續第四個季度增長，環比增長 14%，第 3-7 個季度同比增長 37%。這種增長是基於我們核心政府垂直領域的多年交易，我們在這些領域繼續取得了巨大的成功。在本季度，我們完成了一項較第四季度下滑的交易，另外兩筆交易仍進展順利，並可能在今年晚些時候完成。我們還看到兩筆新的大型政府潛在交易已進入醞釀之中。鑑於這一管道和賬單勢頭，我們預計將達成全年收入共識，並預計今年的 TCV 賬單將在 4.3 億美元至 4.8 億美元之間。

Finally, we are reiterating the 3-year revenue growth CAGR of 9% to 12% that we gave at our Analyst Day.

最後，我們重申我們在分析師日上給出的 3 年收入複合年增長率為 9% 至 12%。

Gross margin for the quarter improved to 60%, which is 700 basis points higher than the prior year, largely due to product mix. In addition, the decline in ARR slowed and came in at $289 million. This trend is encouraging as we remain on track for ARR to return to sequential growth in the second half of this fiscal year.

本季度毛利率提高至 60%，比上年同期高出 700 個基點，這主要歸功於產品組合。此外，ARR 下降速度放緩，達到 2.89 億美元。這一趨勢令人鼓舞，因為我們仍有望在本財年下半年實現 ARR 恢復環比增長。

The dollar-based net retention rate, or DBNRR, also stabilized at 81%. As a reminder, DBNRR doesn't include new logos.

以美元計算的淨保留率（DBNRR）也穩定在 81%。提醒一下，DBNRR 不包含新徽標。

As mentioned in the quarter, we secured new, renewed and expanded business with a number of leading government institutions. These include Shared Services Canada; Transport Canada; the Canadian House of Commons; the U.S. Special Ops Command; the U.S. Navy; the U.S. Army Corps of Engineers; the White House Communications Agency; and the U.S. Transportation Security Administration, or known as TSA.

正如本季度提到的，我們與許多領先的政府機構獲得了新的、更新的和擴展的業務。其中包括加拿大共享服務；加拿大交通部；加拿大下議院；美國特種作戰司令部；美國海軍；美國陸軍工程兵團；白宮通訊局；以及美國運輸安全管理局（TSA）。

Outside North America, we secured business with the French Ministry of Defense, the German state police, the Netherlands Ministry of General Affairs the New Zealand Ministry of Foreign Affairs and the British Transport Police, just to name a few.

在北美以外，我們與法國國防部、德國國家警察、荷蘭總務部、新西蘭外交部和英國交通警察等機構建立了業務往來。

We also closed business in health care and financial services, including John Muir Health, Kaiser Permanente and Hartford HealthCare and a number of leading international banks.

我們還關閉了醫療保健和金融服務業務，包括 John Muir Health、Kaiser Permanente 和 Hartford HealthCare 以及多家領先的國際銀行。

On the channel front, a critical element of scaling our SMB go-to-market presence, this quarter, we saw promising sign of progress from our renewed channel programs. In North America, deal registration and new logos brought by the channel increased significantly, both sequentially and year-over-year.

在渠道方面，這是擴大我們的中小企業市場影響力的關鍵因素，本季度，我們從新的渠道計劃中看到了有希望的進展跡象。在北美，該渠道帶來的交易註冊和新標識數量環比和同比均顯著增加。

Turning briefly to product. Leading independent test lab, The Tolly Group, recently performed an assessment of a number of end point protection platforms, EPPs, including CylanceENDPOINT, Microsoft Defender and others, and tested performance for detection rates, CPU utilization and total scanning time. CylanceENDPOINT came out on top with a market-leading 98.9% detection rate, both online and off-line, while also using the lowest amount of CPU capacity. In comparison, competitors allowed between 9 to 52x more malware through than Cylance.

簡單地轉向產品。領先的獨立測試實驗室 The Tolly Group 最近對許多端點保護平台 EPP（包括 CylanceENDPOINT、Microsoft Defender 等）進行了評估，並測試了檢測率、CPU 利用率和總掃描時間的性能。 CylanceENDPOINT 憑藉市場領先的 98.9% 在線和離線檢測率拔得頭籌，同時還使用了最低的 CPU 容量。相比之下，競爭對手允許的惡意軟件數量是 Cylance 的 9 到 52 倍。

Moving now to licensing. The past quarter, we were pleased to have closed a deal with Key Patent Innovations for the sale of the noncore portion of the patent portfolio. The deal includes an initial $170 million cash payment, which we have received, and a deal value that could total as much as $900 million over time. KPI has already started to ramp up their monetization activities, including adding to their experienced team by hiring executives and patent lawyers as well as starting to engage with potential licensees. That said, it will take some time to be fully ramped up, and we do not expect any meaningful additional revenue from the sale to be recognized this fiscal year. Under the terms of the deal, we retain ongoing revenue for any licensing arrangement in place prior to the sale. And in this quarter, this was $17 million. We expect revenue to be approximately $5 million per quarter for the remaining of the fiscal year.

現在轉向許可。上個季度，我們很高興與 Key Patent Innovations 達成了出售專利組合非核心部分的協議。該交易包括我們已收到的 1.7 億美元初始現金付款，隨著時間的推移，交易總價值可能高達 9 億美元。 KPI 已經開始加強其貨幣化活動，包括通過聘請高管和專利律師來擴充經驗豐富的團隊，以及開始與潛在的被許可人接觸。也就是說，全面啟動還需要一些時間，我們預計本財年不會從銷售中獲得任何有意義的額外收入。根據交易條款，我們保留出售前任何許可安排的持續收入。本季度這一數字為 1700 萬美元。我們預計本財年剩餘時間內每季度的收入約為 500 萬美元。

Let me now hand the call over to Steve who will provide more color on our financials. Steve?

現在讓我將電話轉交給史蒂夫，他將為我們的財務狀況提供更多信息。史蒂夫？

Thank you, John. As usual, my comments on our financial performance for the first quarter will be in non-GAAP terms, unless otherwise noted.

謝謝你，約翰。與往常一樣，除非另有說明，我對第一季度財務業績的評論將採用非公認會計原則術語。

Total company revenue for the quarter was $373 million, IoT revenue was $45 million, Cybersecurity revenue was $93 million and licensing revenue was $235 million. Software product revenue as a percentage of total revenue remained in the range of 85% to 90%, with Professional Services forming the balance. The percentage of software product revenue that was recurring remained at approximately 90%. The $235 million of licensing and other revenue represents $17 million of revenue from pre-existing arrangements that John mentioned earlier and $218 million relating to the patent sale. More details will be available in our 10-Q.

該季度公司總收入為 3.73 億美元，物聯網收入為 4500 萬美元，網絡安全收入為 9300 萬美元，許可收入為 2.35 億美元。軟件產品收入佔總收入的比例保持在85%至90%之間，專業服務佔據平衡。軟件產品收入中經常性收入的比例保持在90%左右。 2.35 億美元的許可和其他收入包括 John 之前提到的現有安排帶來的 1700 萬美元收入和與專利銷售相關的 2.18 億美元收入。更多詳細信息將在我們的 10-Q 中提供。

Related to this, there was $147 million of intellectual property assets previously classified as held for sale on our balance sheet, which were sold as part of the transaction. Accordingly, with the sale completed in Q1, these were reclassified to cost of sales.

與此相關的是，我們的資產負債表上有 1.47 億美元的知識產權資產先前被歸類為持有待售，這些資產作為交易的一部分被出售。因此，隨著第一季度銷售的完成，這些費用被重新分類為銷售成本。

Total company gross margin was 48% and 22 percentage points higher when excluding the patent sale.

公司總毛利率為 48%，如果不包括專利銷售，則高出 22 個百分點。

Operating expenses for the first quarter were $145 million. These non-GAAP operating expenses exclude a $22 million fair value expense on the convertible debentures, $10 million in amortization of acquired intangibles, $8 million in stock compensation expense and $5 million in restructuring expenses.

第一季度運營費用為 1.45 億美元。這些非公認會計準則運營費用不包括 2200 萬美元的可轉換債券公允價值費用、1000 萬美元的收購無形資產攤銷、800 萬美元的股票補償費用和 500 萬美元的重組費用。

Both the non-GAAP operating profit and non-GAAP net profit for the first quarter were $35 million.

第一季度非 GAAP 營業利潤和非 GAAP 淨利潤均為 3500 萬美元。

The $0.06 non-GAAP basic earnings per share for the quarter beat expectations.

本季度非 GAAP 基本每股收益為 0.06 美元，超出預期。

Adjusted EBITDA, excluding the non-GAAP adjustments previously mentioned, was $41 million.

調整後的 EBITDA（不包括前面提到的非 GAAP 調整）為 4100 萬美元。

Total cash, cash equivalents and investments increased by $91 million to $578 million as at May 31, 2023.

截至 2023 年 5 月 31 日，現金、現金等價物和投資總額增加 9100 萬美元，達到 5.78 億美元。

Net cash generated from operations was $99 million. The cash generated from the patent sale strengthens our balance sheet and helps finance our plans for profitable growth.

運營產生的淨現金為 9900 萬美元。專利銷售產生的現金增強了我們的資產負債表，並有助於為我們的盈利增長計劃提供資金。

Given the macroeconomic backdrop, we remain selective on potential investments and remain committed to significantly reducing the level of EPS loss and operating cash flow usage this fiscal year.

考慮到宏觀經濟背景，我們仍然對潛在投資進行選擇性，並繼續致力於大幅降低本財年每股收益損失和運營現金流使用水平。

That concludes my comments, and I'll turn it back to John.

我的評論到此結束，我會將其轉回給約翰。

Thank you, Steve. Before we open the line up for Q&A, I'd like to touch on the announcement we made in May regarding the strategic review of our portfolio. .

謝謝你，史蒂夫。在我們開始問答之前，我想談談我們在五月份發布的有關我們投資組合戰略審查的公告。 。

Our strategy is clear. We have a robust operating plan for both our business units to address the large and growing market opportunities. In addition, we see potential upside to the thesis from the convergence of cybersecurity with the IoT. Indeed, McKinsey recently issued a report on this trend of convergence and named BlackBerry as being well positioned to capitalize on what they estimate to be a $750 billion TAM. We believe that executing against this strategy, hitting our 3-year targets and achieving profitable growth will generate significant shareholder value.

我們的策略很明確。我們為兩個業務部門製定了穩健的運營計劃，以應對巨大且不斷增長的市場機會。此外，我們還看到了網絡安全與物聯網融合的潛在優勢。事實上，麥肯錫最近發布了一份關於這種融合趨勢的報告，並指出黑莓已經做好了充分利用他們估計的 7500 億美元 TAM 的準備。我們相信，執行這一戰略、實現我們的三年目標並實現盈利增長將產生顯著的股東價值。

Notwithstanding, the Board and management are constantly focused on optimizing shareholder values and have, therefore, asked the question as to whether there are alternative approaches for delivering greater shareholder returns, for example, by means of the 2 business operating as stand-alone companies. As per our press release on May 1, we have engaged leading investment bankers, Morgan Stanley and Perella Weinberg, as well as establishing an internal program management office, to support this review. And I could tell investors that there is a lot of activity ongoing. Although the review is in the early stage, a lot of progress has already been made and the team is focusing on performing a thorough process as quickly as we practically can. It wouldn't be appropriate to provide further commentary until the Board has approved a specific outcome or has culminated its review.

儘管如此，董事會和管理層始終致力於優化股東價值，因此提出了是否有其他方法可以提供更大股東回報的問題，例如，通過兩家公司作為獨立公司運營。根據我們 5 月 1 日發布的新聞稿，我們已聘請領先的投資銀行家摩根士丹利 (Morgan Stanley) 和佩雷拉·溫伯格 (Perella Weinberg)，並建立了一個內部項目管理辦公室來支持此次審查。我可以告訴投資者，有很多活動正在進行中。儘管審查還處於早期階段，但已經取得了很多進展，團隊正致力於盡快執行徹底的流程。在董事會批准具體結果或完成審查之前，不宜提供進一步評論。

That ends my prepared remarks. Andrea, could you please open the line for Q&A?

我準備好的發言到此結束。安德里亞，您能打開問答線路嗎？

(Operator Instructions) And our first question will come from Luke Junk of Baird.

（操作員說明）我們的第一個問題將來自 Baird 的 Luke Junk。

First question, I want to ask about IoT. So you cited some temporary delays to the start of new programs as a few of your customers review their software-defined vehicle plans. I guess what I'm trying to understand is how close you are to these customers as they made that change and your level of confidence that this is solely a timing issue versus something that could be more disruptive. And related to that, should we be thinking about the low end of full year guidance? Or where would you expect to be within the guidance range given this result?

第一個問題，我想問一下IoT。因此，您提到了由於您的一些客戶審查其軟件定義的車輛計劃而導致新計劃啟動的一些暫時延遲。我想我想了解的是，當這些客戶做出改變時，您與他們的關係有多密切，以及您對這只是一個時間問題而不是可能更具破壞性的問題的信心程度。與此相關的是，我們是否應該考慮全年指導的低端？或者鑑於此結果，您預計會在指導範圍內的什麼位置？

Okay. Good question. So from the design delay, we base our forecast on the project being awarded to us, mostly. So it is embedded into our $640 million backlog that we announced. So we already won the design. That's why we're expecting the development seat. So we have very high confidence and very close contact with these customers. And these are the huge big customer names around the world. So I feel comfortable with that. There are, of course, design wins that may get affected in Q2, 3 and 4, but we wanted to make sure that we see that first before we made the adjustment. I personally believe that there might be some minor shifting of time frame but nothing that we expected to not winning it. I don't actually expect that it will be delayed for too long. So that's that question.

好的。好問題。因此，從設計延遲來看，我們的預測主要基於授予我們的項目。因此，它被納入我們宣布的 6.4 億美元積壓訂單中。所以我們已經贏得了設計。這就是為什麼我們期待開發席位。所以我們對這些客戶有非常高的信心和非常密切的聯繫。這些都是世界各地的大客戶。所以我對此感到很舒服。當然，第二季度、第三季度和第四季度的設計成果可能會受到影響，但我們希望確保在做出調整之前首先看到這一點。我個人認為，時間框架可能會發生一些細微的變化，但我們預計不會贏得勝利。我實際上並不期望它會延遲太久。這就是那個問題。

The outlook, John, would it be towards the bottom end of the range?

約翰，前景會是該範圍的底部嗎？

Well, Tim has looked at the consensus number. And when we look at our range and our forecast, we feel comfortable with the consensus number. And I don't know what is high or low end.

好吧，蒂姆已經查看了共識數字。當我們查看我們的範圍和預測時，我們對共識數字感到滿意。而且我也不知道什麼是高端，什麼是低端。

Towards the lower end, John.

走向低端，約翰。

Okay. But I think you estimated based on the consensus number. That should be reasonable for now.

好的。但我認為你是根據共識數字來估計的。目前來說應該是合理的。

Okay. And then for my follow-up, I want to stay within IoT, John, could you just comment on the level of engagement that you've seen since IVY's GA release earlier this month. I'm curious both with respect to OEMs and Tier 1 partners, if you could comment. And is there anything that has surprised you in the first month post release?

好的。然後，對於我的後續行動，我想留在 IoT 領域，John，您能否評論一下自本月初 IVY GA 發布以來您所看到的參與程度。我對原始設備製造商和一級合作夥伴都很好奇，如果您能發表評論。發布後第一個月有什麼讓您感到驚訝的事情嗎？

On the IVY?

在常春藤上？

Yes.

是的。

I would rather not tell you the number of POC that is requested or ongoing, but it's reasonably significant. I'll just leave it at that. So a very high level of interest. IVY is quite unique right now in the market. The competition that we run into is the customer themselves. They believe they are building a data and analytics platform that may not be as much edge-to-cloud, maybe it's mostly cloud, implementation. But once they see the simplicity of our solution and the number of applications that we have lined up, and we'll continue to line up, this is almost like building an app store for the car. A lot of them wanted to test IVY under the POC and then make a determination whether they should continue doing their own or they come with us. Some of them have already decided that they are coming with us. So that's the extent that I could comment on.

我不想告訴您已請求或正在進行的 POC 數量，但它相當重要。我就這樣吧。所以興趣非常高。 IVY 目前在市場上非常獨特。我們遇到的競爭是客戶本身。他們相信他們正在構建一個數據和分析平台，該平台可能不是邊緣到雲，也許主要是雲實施。但是，一旦他們看到我們解決方案的簡單性以及我們已經排隊的應用程序數量，並且我們將繼續排隊，這幾乎就像為汽車構建應用程序商店一樣。他們中的很多人想在 POC 下測試 IVY，然後決定是繼續自己做還是和我們一起做。他們中的一些人已經決定和我們一起去。這就是我可以發表評論的程度。

The next question comes from Mike Walkley of Canaccord Genuity.

下一個問題來自 Canaccord Genuity 的 Mike Walkley。

Switching gears maybe to the cybersecurity business. With a fourth consecutive quarter of billings growth, can you share a little more color just what's driving the improving billings? Or maybe more specifically, what solutions in the portfolio are some of these multiyear government contracts choosing?

可能會轉向網絡安全業務。隨著賬單數量連續第四個季度增長，您能否分享更多推動賬單增長的因素？或者更具體地說，這些多年期政府合同在投資組合中選擇了哪些解決方案？

I think it's a number. First of all, we had 2 challenges in the past. One challenge is the SME for the UEM challenge where they were leaving us, and there was a lot of churn in that. And that churn over the quarters, over the time, has now stabilized. So that's number one. Number two, on UES, the Cylance product line, as you know, we were having trouble integrating it, and we did integrate it. And then we caught up on the EDR's technology. We're not winning bake-off. So we're comfortable with that. And the customer is not seeing that. So our renewal rates are now trending up nicely. And winning new logo by replacing kind of the legacy folks in the SMB market, and that's why I also commented on the channel, the channel does bring us a lot more businesses than it usually do. So those are the second part of the reason.

我認為這是一個數字。首先，我們過去遇到過兩個挑戰。其中一個挑戰是中小企業面臨的 UEM 挑戰，他們離開了我們，其中有很多流失。隨著時間的推移，各季度的波動現已穩定下來。所以這是第一。第二，在 UES 上，Cylance 產品線，如您所知，我們在集成它時遇到了困難，但我們確實集成了它。然後我們趕上了 EDR 的技術。我們沒有贏得烘焙比賽。所以我們對此感到滿意。而客戶卻沒有看到這一點。因此，我們的續訂率現在呈良好上升趨勢。通過替換中小企業市場中的一些傳統人員來贏得新徽標，這就是為什麼我也對該頻道發表評論的原因，該頻道確實為我們帶來了比平常更多的業務。這是原因的第二部分。

And then we have a growth, although now based on a smaller number, for both AtHoc for the Critical Event Management software as well as the Secure Communications software. And they are typically tied to government. And government problem is that it takes a long time. But they are all in very high renewal rate, very high. In fact, we seldom ever lose one. It would be rare for us to lose the renewal. And we're winning new ones, but that takes time, as I said. So I feel that all the 4 components that make up our cyber offering are all building some level of momentum. And you're raising or addressing some of the issues, the pain point, that we had.

然後，我們的關鍵事件管理軟件 AtHoc 和安全通信軟件都有增長，儘管現在數量有所減少。它們通常與政府有聯繫。而政府的問題是這需要很長時間。但它們的續訂率都非常高，非常高。事實上，我們很少失去一個。我們很少會失去續約。我們正在贏得新的勝利，但這需要時間，正如我所說。所以我覺得構成我們網絡產品的所有 4 個組成部分都在形成一定程度的動力。您提出或解決了我們遇到的一些問題和痛點。

Great. That's very, very helpful. And maybe just a follow-up question, just going back to IoT and your big pipeline there. I know tough on the development seat timing, but as these new design wins turn to production, what are you thinking about in terms of revenue uptick in terms of what you're getting today from current royalties?

偉大的。這非常非常有幫助。也許只是一個後續問題，回到物聯網和那裡的大管道。我知道開發席位的時間安排很困難，但隨著這些新設計的勝利轉向生產，就您今天從當前特許權使用費中獲得的收入而言，您對收入增長有何看法？

So the first set of revenue that we're going to get on the design win that we had is the developer seat. As they get into a very strong development cycle, typically, every OEM will buy more seats. And so that's number one. And then they sometimes will require professional services help, which we also offer, to make sure they get to use the QNX in the most efficient way. So that is the second one.

因此，我們將通過設計勝利獲得的第一組收入是開發人員席位。當他們進入一個非常強大的開發週期時，通常每個 OEM 都會購買更多席位。所以這是第一。然後，他們有時會需要專業服務幫助（我們也提供這些幫助），以確保他們以最有效的方式使用 QNX。這是第二個。

Typically, an SOP, which is the start of production, on a design win, 3 to 4 years from the day we win it, but I think that is going to accelerate partly because of competition from China and some of the other Asian countries, like Vietnam, I think will compress the cycle. And so I don't know whether I answered your question, that's kind of where we expect the revenue to come in. So the $640 million, this is only royalty. It doesn't include professional services. It doesn't include developer seat. So we will eventually, hopefully, get, if not all, the majority of the $640 million. And we, of course, will continue to grow the $640 million.

通常情況下，SOP，即生產的開始，在設計獲勝後，從我們獲勝之日起 3 到 4 年，但我認為這將加速，部分原因是來自中國和其他一些亞洲國家的競爭，像越南一樣，我認為會壓縮週期。所以我不知道我是否回答了你的問題，這就是我們預期收入的來源。所以 6.4 億美元，這只是特許權使用費。它不包括專業服務。它不包括開發人員席位。因此，我們最終有望獲得 6.4 億美元中的大部分（即使不是全部）。當然，我們將繼續增加 6.4 億美元的資金。

The next question comes from Paul Treiber of RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場的保羅·特雷伯（Paul Treiber）。

I'm going to apologize upfront for asking an accounting question. But can you explain, the high-level reason for the revenue recognition on the patent sale, you received $170 million cash and you're recognizing $218 million, what's the reason for the difference there?

對於提出會計問題，我要預先表示歉意。但您能否解釋一下，專利銷售收入確認的高層原因，您收到了 1.7 億美元現金，而您確認了 2.18 億美元，其中差異的原因是什麼？

I could ask Steve to tell you because I think we should recognize a lot more, but my accounting gurus all said that this is the right, proper constrained revenue. I think they use the word constrained. I have never used that term before. But I'll let Steve answer the question of how this come about.

我可以請史蒂夫告訴你，因為我認為我們應該認識到更多，但我的會計專家都說這是正確的、適當的限制收入。我認為他們使用了“約束”這個詞。我以前從未使用過這個詞。但我會讓史蒂夫回答這是如何發生的問題。

Sure. So as we disclosed the details of the terms of the deal, beyond the initial payment of the $170 million, which we did receive, there's a fixed amount that's due no later than a few years' out and then there's some also royalty component as well. So it's those other elements in short under the accounting framework where the fixed piece, obviously, there's some discounting there that you apply the kind of net present value back, and then only a very small component, just the very near term, on the royalty component. So the rest, obviously, will be recorded in future periods as the amounts become known over the next several years. .

當然。因此，當我們披露交易條款的細節時，除了我們確實收到的 1.7 億美元的首期付款之外，還有一筆固定金額將在幾年內到期，此外還有一些特許權使用費。簡而言之，在會計框架下，固定部分顯然有一些折扣，您可以將淨現值應用回來，然後只有非常小的一部分，只是最近的特許權使用費成分。因此，其餘的顯然將在未來的時期中記錄，因為金額將在未來幾年內公佈。 。

And the earn-out per se or the future royalty, like is it a risk-adjusted measure? Like, how did the accounting arrive at that number?

收益本身或未來的特許權使用費，就像它是一種風險調整措施嗎？比如，會計是如何得出這個數字的？

Basically, there is a lot of factors that go into it, and there is some risk weighting in it. But by no means does the accounting framework allow you to kind of look at the full stream and value of the full stream over the remaining period. So don't think of it as a fair value because the accounting does not represent the full fair value of that.

基本上，有很多因素參與其中，並且有一些風險權重。但會計框架絕不允許您查看剩餘期間的完整流和完整流的價值。因此，不要將其視為公允價值，因為會計並不代表其全部公允價值。

Okay. That's helpful to understand. In terms of cash flow, though, if you take out the patent sale this quarter, cash flow from operations was negative. What were the headwinds to cash flow this quarter?

好的。這有助於理解。不過，就現金流而言，如果除去本季度的專利銷售，運營現金流為負。本季度現金流面臨哪些阻力？

Usually, our typical profile is to have a net cash usage in the early part of the year. So in that regard, if you remove the amount related to the IP sale it's a similar profile to what we typically have over the course of the year and then generate in later periods.

通常，我們的典型情況是在年初有淨現金使用量。因此，在這方面，如果你刪除與知識產權銷售相關的金額，它與我們通常在一年中擁有的金額類似，然後在以後的時期生成。

Paul, it's driven mainly by bonuses for last's year so-called VIP payment and compensation.

保羅，這主要是由去年所謂的 VIP 付款和補償的獎金推動的。

Okay. Good to know. Just last question, I'm not sure you can answer it, but I'll throw it out there. This arbitration in regards to the patent sale, any comments there, any sort of outlook on that?

好的。很高興知道。最後一個問題，我不確定你能回答，但我會把它扔在那裡。此次仲裁涉及專利出售，對此有什麼評論或展望嗎？

Well, it's something that I shouldn't comment on. I think the lawyer wouldn't like me to comment on it, but there's no merit to it, and we will fight it vigorously. And I don't think you need to worry about it. .

嗯，這是我不應該評論的事情。我想律師不會希望我對此發表評論，但這樣的做法沒有任何道理，我們會大力抗爭。我認為你不需要擔心它。 。

The next question comes from Daniel Chan of TD Cowen.

下一個問題來自 TD Cowen 的 Daniel Chan。

On the new software-defined vehicle plans, you mentioned that there was timing differences, but just wondering if there's any changes to the scope of those programs that could either generate potential upside to what you originally had agreed to?

在新的軟件定義車輛計劃中，您提到存在時間差異，但只是想知道這些計劃的範圍是否有任何變化，是否可以為您最初同意的內容帶來潛在的好處？

Yes. Have you or any one of the people on your firm gone to the MotorTrend event in CES in Vegas this beginning of the year? The reason I asked that question is because nearly every OEM -- we should try to get tickets for you guys in the future. Every OEM is having an SDV plan, software-defined vehicle. So yes, the scope are expanding. We just don't want to get overly carried away with our estimates. But the scope is definitely expanding. It is truly a timing thing. In a particular one case, we're relying on some really good developer seats that didn't come in. And that was purely a timing issue because they want to step up the program. And there is some very visible public thing, public announcement, that the OEM, major OEMs, are reorganizing some of their efforts and step up some of the car release days because of software. There are at least a handful of them. Because they're all my customers, I prefer not to mention here.

是的。今年年初，您或您公司的任何一位員工是否參加過在維加斯舉行的 CES 的 MotorTrend 活動？我問這個問題的原因是因為幾乎每個 OEM——我們將來都應該盡力為你們爭取到門票。每個 OEM 都有一個 SDV 計劃，即軟件定義的車輛。所以是的，範圍正在擴大。我們只是不想對我們的估計過於得意忘形。但范圍肯定在擴大。這確實是一個時機問題。在一個特定的案例中，我們依賴於一些非常好的開發人員席位，但沒有加入。這純粹是一個時間問題，因為他們想加快該計劃。還有一些非常明顯的公共事件，即公開聲明，原始設備製造商（OEM）、主要原始設備製造商（OEM）正在重組他們的一些工作，並由於軟件的原因加快了一些汽車發布的時間。至少有幾個。因為他們都是我的客戶，所以我不想在這裡提及。

Okay. That's helpful. And then on the cybersecurity side, the billings that you won, any color on how much of those were renewals versus new business?

好的。這很有幫助。然後在網絡安全方面，您贏得的賬單，其中有多少是續訂業務與新業務的區別？

That's interesting. I don't have it. We could have Tim follow up with you. I don't have the breakdown of the 122.

那很有意思。我沒有。我們可以讓蒂姆與您聯繫。我沒有122的詳細信息。

Okay. Just looking for some color on how much of that is just backfilling contracts that have expired versus how much renewed.

好的。只是尋找一些顏色來了解其中有多少只是回填已過期的合同以及有多少是續籤的合同。

I would tell you the biggest one, that was the most significant one, was an extension of multiple number of years and also expanded the footprint on a number of licenses. So in that case, it's both.

我想告訴你，最大的一個，也是最重要的一個，是延長了很多年，並且擴大了許多許可證的覆蓋範圍。所以在這種情況下，兩者都是。

Next question comes from Trip Chowdhry of Global Equities Research.

下一個問題來自全球股票研究部的 Trip Chowdhry。

Congratulations, very good backlog and billing numbers. I have a question. In terms of IVY, you have a very strong machine learning models for Cylance. And I was wondering, is there a way of using maybe some transfer learning or some other secret sauce that this intellectual horsepower you have in the Cylance machine learning AI products we could transpose it into IVY? And if so, that would be great. So any thoughts you may have on that end?

恭喜，非常好的積壓和賬單數字。我有個問題。就 IVY 而言，Cylance 擁有非常強大的機器學習模型。我想知道，有沒有一種方法可以利用 Cylance 機器學習人工智能產品中的一些遷移學習或其他秘密武器，我們可以將其轉移到 IVY 中？如果是這樣，那就太好了。那麼您對此有什麼想法嗎？

Yes. Like every company, we obviously are looking at this plan. So first off, our threat hunting group as always uses the AI, and we recently just offered the threat hunting services to customers. So in a way, it's all AI-driven model. There's like 4 generations of that. And we got literally billions of malware profile experience that we built the model based on the machine learning. So you'll probably see that being a push.

是的。像每家公司一樣，我們顯然正在考慮這個計劃。首先，我們的威脅狩獵小組一如既往地使用人工智能，我們最近剛剛向客戶提供了威脅狩獵服務。所以在某種程度上，這都是人工智能驅動的模型。大概有4代了。我們確實獲得了數十億的惡意軟件配置文件經驗，我們基於機器學習構建了模型。所以你可能會認為這是一種推動。

Now as with other AI capability going into products, we haven't finalized that. We're in the business of going through it, in the process of going through it. Except I wanted to kind of make sure that we don't reveal too much of our internal model when we go into the OpenAI world, so we're literally in that kind of internal analysis of it.

現在，與其他人工智能功能進入產品一樣，我們還沒有最終確定。我們正在經歷它，正在經歷它。但我想確保當我們進入 OpenAI 世界時，我們不會透露太多的內部模型，所以我們實際上是在對其進行內部分析。

And we're also waiting for the government. I think the government will have something to say about how the AI is allowed to use and not allowed to use in the product because we're very sensitive to governments. We're a big provider of system or software to governments around the world. So we got to be very careful that we don't run afoul with their rules. So I have people working on both, in developing the product as well as understanding the policy.

我們也在等待政府。我認為政府會對人工智能如何被允許在產品中使用和不允許在產品中使用有話要說，因為我們對政府非常敏感。我們是向世界各地政府提供系統或軟件的大型供應商。所以我們必須非常小心，不要違反他們的規則。因此，我讓人們同時致力於開發產品和了解政策。

Very good. A follow-up on same IVY and battery management system, which is very critical component of the modern electric vehicle. And again, you have technologies like Cylance, and I was wondering if you may have thought about using the machine learning models that you already have, maybe it needs to be trained on a different set of data, to automate maybe battery management system for some performance enhancements, which could literally differentiate yourself. And maybe you will be the only player who can offer software-defined vehicles complete intelligence in the battery management solutions. Any thoughts on that? And that's all for me.

非常好。相同 IVY 和電池管理系統的後續產品，這是現代電動汽車非常重要的組成部分。再說一次，你擁有像 Cylance 這樣的技術，我想知道你是否考慮過使用你已經擁有的機器學習模型，也許它需要在不同的數據集上進行訓練，以自動化某些電池管理系統性能增強，這確實可以讓您脫穎而出。也許您將是唯一能夠在電池管理解決方案中提供軟件定義車輛完整智能的參與者。對此有什麼想法嗎？這就是我的全部。

Yes, Trip, our lab people will know a lot more about that. And we, of course, will try to take advantage of the two from a business side. But it's not something that we are deep into yet, but that's a good suggestion.

是的，特里普，我們的實驗室人員對此會了解更多。當然，我們會嘗試從商業角度利用這兩者。但這還不是我們深入研究的事情，但這是一個很好的建議。

The next question comes from Todd Coupland of CIBC.

下一個問題來自 CIBC 的托德·庫普蘭 (Todd Coupland)。

I was wondering if you could talk about the expected quarterly cadence of IoT and cyber. What does it look like for Q2 and then the back half of the year?

我想知道您是否可以談談物聯網和網絡的預期季度節奏。第二季度和下半年情況如何？

I don't normally provide quarterly outlook, Todd. That's a good one. Given the environment out there, I think we should be a little bit more cautious short term. But the year, as I said, we feel good about our pipeline and all the deals that we're working on, particularly the government deals from the cyber side. We're waiting for the OEMs on the vehicle side to kind of release their development schedules, so to speak. So those are the two major things that we have to look forward to and examine very carefully and watch very carefully. So I would say I expect Q2 to be probably a little better than Q1. And then second half, as I said, particularly on the cyber side, I expect the ARR to return to positive sequentially.

托德，我通常不提供季度展望。這是一件好事。考慮到當前的環境，我認為短期內我們應該更加謹慎。但正如我所說，今年我們對我們的管道和我們正在開展的所有交易感到滿意，特別是來自網絡方面的政府交易。可以這麼說，我們正在等待汽車方面的原始設備製造商發布他們的開發計劃。所以這兩件大事是我們必須非常期待、非常仔細地審視、非常仔細地觀察的。所以我想說我預計第二季度可能會比第一季度好一些。然後下半年，正如我所說，特別是在網絡方面，我預計 ARR 將依次恢復為正值。

Okay. I appreciate that. And then what are your thoughts on your contract extension, which is coming up this year? I know you've talked about it in the past, if you have anything incremental to say there, I would be interested.

好的。我很感激。那麼你對今年即將到來的續約合同有何看法？我知道你過去曾談論過這個問題，如果你有什麼補充的話，我會很感興趣。

It's a little complicated with the Imperium (sic) [Zimperium] project. I'm waiting for kind of where the Imperium comes up with. Then I will kind of make my own decision of what I wanted to do. But it's all in good hands. So don't worry about it. And I told the Board, let's wait for where the Imperium project is at and then we'll make that decision.

Imperium（原文如此）[Zimperium] 項目有點複雜。我在等待帝國的出現。然後我會自己決定我想做的事情。但這一切都掌握在良好的手中。所以不用擔心。我告訴董事會，讓我們等待帝國項目的進展，然後再做出決定。

All right. And you had indicated there was a lot of activity around that project. Would you expect it still to take at least the summer before you get your initial findings? Or can it happen sooner than that?

好的。您曾表示圍繞該項目有很多活動。您是否預計至少還需要一個夏天才能得到初步發現？或者它可以比這更早發生嗎？

When you look at separating the business, you look at separating the income statement. That's the easy one. Then you have to separate the balance sheet, and then you have to look at the tax side of the equation and then you have to look at what the market offer and not offer. And there's just a ton of thing that you cannot just skip it. And so I still expect this to be the end of summer type thing.

當您考慮拆分業務時，您會考慮拆分損益表。這是最簡單的一個。然後你必須分開資產負債表，然後你必須看看等式的稅收方面，然後你必須看看市場提供什麼和不提供什麼。而且有很多事情你不能跳過。所以我仍然預計這將是夏季結束之類的事情。

I would now like to turn the call back over to John Chen, Executive Chair and CEO of BlackBerry, for any closing remarks.

現在我想將電話轉回黑莓執行董事長兼首席執行官約翰·陳 (John Chen)，讓其發表結束語。

I don't have any closing remarks. Thank you, everybody, for participating. We're always cognizant of the fact that you are in the East Coast and then it's late for you folks, and I appreciate it. So I'll talk to you guys more, hopefully sooner than next quarter, if not, at least next quarter. Thank you all very much. Have a good evening.

我沒有任何結束語。謝謝大家的參與。我們總是意識到你們在東海岸，但對你們來說已經晚了，我很感激。因此，我會與你們進行更多交談，希望早於下個季度，如果沒有，至少下個季度。非常感謝大家。祝你晚上愉快。

That concludes today's conference. Thank you for attending today's presentation, and you may now disconnect.

今天的會議到此結束。感謝您參加今天的演示，您現在可以斷開連接了。