BlackBerry Ltd (BB) 2024 Q2 法說會逐字稿

Good afternoon, and welcome to the BlackBerry Second Quarter Fiscal Year 2024 Results Conference Call. My name is Rocco, and I will be your conference moderator for today's call. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes. I would now like to turn today's call over to Tim Foote, Vice President of BlackBerry Investor Relations. Please go ahead.

下午好，歡迎參加 BlackBerry 2024 財年第二季業績電話會議。我叫羅科，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。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, Rocco. Good afternoon, and welcome to BlackBerry's second 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. 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.

謝謝你，羅科。下午好，歡迎參加黑莓 2024 年第二季財報電話會議。今天與我一起參加電話會議的是執行主席兼執行長 John Chen；和財務長史蒂夫雷。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，史蒂夫將審查財務表現。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.

民眾可透過撥入號碼和 blackberry.com 投資者資訊部分的網路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。前瞻性陳述是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。許多因素可能導致本公司的實際結果或績效與前瞻性陳述明示或暗示的結果或績效有重大差異。這些因素包括公司年度文件和 MD&A 中討論的風險因素。您不應過度依賴本公司的前瞻性陳述。任何前瞻性陳述僅截至今日作出，本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 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業績摘要中引用非公認會計準則資料。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 網站上取得。

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

然後，我會將電話轉給約翰。

Thanks, Jim. Good afternoon, everyone, and thank you for joining us today.

謝謝，吉姆。大家下午好，感謝您今天加入我們。

Let me start with the IoT business unit. Revenue for the quarter increased 9% sequentially to $49 million, and gross margin increased by 400 basis points to 84%. The most important long-term leading indicator of the health of this business is securing new design wins and building royalty backlog. And that we had another strong quarter. In fact, by the end of the first half, we have secured more than 2/3 of our FY '24 annual targets for new backlog and expect to exceed it.

讓我從物聯網業務部門開始。該季度營收季增 9%，達到 4,900 萬美元，毛利率成長 400 個基點，達到 84%。該業務健康狀況最重要的長期領先指標是確保新設計的勝利和建立特許權使用費積壓。我們又迎來了一個強勁的季度。事實上，到上半年末，我們已經實現了 24 財年新積壓年度目標的 2/3 以上，並預計會超過這一目標。

In the quarter, QNX secured 20 new design wins in auto and 7 in general embedded market verticals. The largest of these was an 8-figure estimate lifetime revenue ADAS win where one of the top 5 global automakers to deploy our QNX OS for safety. These wins illustrate a strong secular trend of consolidation of software into centralized compute domains. With this ADAS module powering drive monitoring, surround view, lane-keep assist, adaptive cruise control and other safety features all on a single chip. As automotive software stacks becomes more complex and require significantly higher compute power, it plays with the QNX strength.

本季度，QNX 在汽車領域贏得了 20 項新設計，在一般嵌入式市場垂直領域贏得了 7 項新設計。其中最大的一項是 ADAS 終身收入估計達到 8 位數，其中全球 5 強汽車製造商之一部署了我們的 QNX 作業系統以確保安全。這些勝利顯示了將軟體整合到集中計算域的強大長期趨勢。此 ADAS 模組可在單一晶片上為駕駛監控、環視、車道維持輔助、自適應巡航控制和其他安全功能提供支援。隨著汽車軟體堆疊變得更加複雜並且需要更高的運算能力，它就發揮了 QNX 的優勢。

In addition to our strong win rate for ADAS, we are also the clear market leader for foundational software in the digital cockpit. The combination of our high-performance safety-critical RTOS and hypervisors allows for mixed criticality in this domain. Given our market-leading positions, our design wins continue to be well diversified across all major global markets. In Asia, we secured a design win with LG Electronics that include our hypervisor will be deployed in a number of vehicle models for a top 10 global automakers. We also secured wins with Vision and leading OEM Cherry, via Bosch among others.

除了 ADAS 領域的高勝率之外，我們還是數位駕駛艙基礎軟體領域無可爭議的市場領導者。我們的高效能安全關鍵型 RTOS 和虛擬機器管理程式結合，可實現該領域的混合關鍵性。鑑於我們的市場領先地位，我們的設計勝利繼續在全球所有主要市場上實現多元化。在亞洲，我們贏得了 LG Electronics 的設計勝利，其中包括我們的虛擬機器管理程式將部署在全球十大汽車製造商的多種車型中。我們還透過博世等贏得了 Vision 和領先的 OEM Cherry 的勝利。

In Europe, a digital cockpit win also include our acoustic middleware, this is exciting because feedback from customers suggests that this relatively new market opportunity for software-defined acoustic is likely to be fast growing. As well as our strong footprint in auto, QNX is well diversified in other verticals, particularly medical and industrial. Building on our position in surgical robotics, this quarter, we secured a design win for our QNX Medical OS for safety to be deployed in the robotic arms for dentistry. These design wins confirm that QNX business is strongly positioned for the long term. With revenue for Q2 being largely in line with expectation, we continue to expect IoT to deliver solid year-over-year growth this fiscal year. That said, we are taking a prudent view on our IoT revenue outlook for the next 2 quarters.

在歐洲，數位駕駛艙的勝利還包括我們的聲學中間件，這是令人興奮的，因為客戶的反饋表明，軟體定義聲學的這個相對較新的市場機會可能會快速增長。除了在汽車領域的強大影響力外，QNX 在其他垂直領域也實現了多元化，特別是在醫療和工業領域。憑藉我們在手術機器人領域的領先地位，本季度我們贏得了 QNX 醫療操作系統的設計勝利，以確保在牙科機械臂中的安全部署。這些設計成果證實了 QNX 業務的長期優勢。由於第二季的營收基本上符合預期，我們繼續預期物聯網本財年將實現穩健的年成長。也就是說，我們對未來兩季的物聯網收入前景持謹慎態度。

Automakers are currently addressing a number of significant challenges, including the industry strike action, the transition to software-designed vehicles as well as in electrification pivot and supply chain challenges related to either preproduction software development programs, or to production schedule could impact our revenue this fiscal year. However, we expect this to be a relatively short-term timing issue. As a result, we revised and broadened our IoT revenue outlook range to $225 million to $240 million. This represents a 9% to 17% year-over-year growth. This means that we still expect a strong second half of the fiscal year. We expect further sequential growth into Q3, and we currently expect Q4 to be the strongest quarter for revenue in QNX history. This confidence is based on a combination of the pipeline of potential new design wins, our service schedule and royalty expected from the backlog.

汽車製造商目前正在應對許多重大挑戰，包括行業罷工行動、向軟體設計車輛的過渡以及電氣化支點以及與預生產軟體開發計劃或生產計劃相關的供應鏈挑戰，這些挑戰可能會影響我們的收入財政年度。然而，我們預計這將是一個相對短期的時間問題。因此，我們修改了物聯網收入預期範圍並將其擴大至 2.25 億美元至 2.4 億美元。這意味著同比增長 9% 至 17%。這意味著我們仍然預計本財年下半年將表現強勁。我們預計第三季將進一步實現環比成長，目前預計第四季將成為 QNX 史上收入最強勁的季度。這種信心是基於潛在的新設計獲勝管道、我們的服務時間表以及積壓訂單中預期的特許權使用費的組合。

Turning now to product. At our Analyst Day in May, we announced the upcoming launch of our new generation QNX real-time operating system, QNX 8.0 targeted for December. This release will make a fundamental shift in market performance, and we expect it to further cement QNX leadership position in automotive and beyond. Feedback from the beta trial has been very positive with customers and partners impressed with performance, scalability and functionality. Perhaps some of these will convert into revenue in Q4. This significant enhancement of performance and scalability comes at a time when chipmakers are focused on developing hardware to power generative AI. We believe that our QNX 8.0 software is uniquely positioned to maximize the potential of Gen AI in the metal systems, particularly in safety critical use cases. QNX 8.0 will combine best operating performance with the ability to run mission-critical process safely and securely alongside Gen AI stack on the same chip.

現在轉向產品。在 5 月的分析師日上，我們宣布即將推出新一代 QNX 即時作業系統 QNX 8.0，計劃於 12 月推出。此次發布將使市場表現發生根本性轉變，我們預計它將進一步鞏固 QNX 在汽車及其他領域的領導地位。測試版試用的回饋非常積極，客戶和合作夥伴對效能、可擴展性和功能印象深刻。也許其中一些將在第四季度轉化為收入。性能和可擴展性的顯著增強正值晶片製造商專注於開發硬體來為生成式人工智慧提供動力之際。我們相信，我們的 QNX 8.0 軟體具有獨特的定位，可最大限度地發揮 Gen AI 在金屬系統中的潛力，特別是在安全關鍵用例中。 QNX 8.0 將最佳運行效能與在同一晶片上與 Gen AI 堆疊一起安全可靠地運行關鍵任務流程的能力結合起來。

Now moving on to IVY. We were delighted to announce that IVY was selected by Tier 1 supplier Mitsubishi Electric to power its new FlexConnect.X in-cabin systems. IVY [hash] technology and the high-quality real-time insight that it provides will help enhance road safety and enable new in-vehicle experience. In addition, we have solid traction with new IVY proof-of-concept trials. Currently, we are progressing POC with a number of major OEMs, including a top 10 global automaker and also a leading commercial vehicle OEM Scania. The strong level of interest for IVY POC clearly confirms our strategy.

現在轉向IVY。我們很高興地宣布 IVY 被一級供應商三菱電機選擇為其新型 FlexConnect.X 車內系統提供動力。 IVY [哈希] 技術及其提供的高品質即時洞察將有助於增強道路安全並實現新的車內體驗。此外，我們也透過新的 IVY 概念驗證試驗獲得了堅實的支持。目前，我們正在與多家主要整車廠進行POC，其中包括全球排名前十的汽車製造商以及領先的商用車整車廠斯堪尼亞。對 IVY POC 的強烈興趣明確證實了我們的策略。

On the product front, this month, we released an updated version with significant enhancement to cloud features and increased hardware and software support. IVY's development has moved from the early heavy lifting phase, and the focus is now on refinements, enhancing stability, expanding sensor supports and improving the developer experience. The IVY ecosystem continue to expand and mature. We now have over 40 partners currently building on IVY, and there are more than 20 pre-integrated solutions that are being used by customers in POC trial and at industry events. This month, the IVY Innovation Fund made its latest investment this time in CorrActions, an exciting Israeli startup. CorrActions has developed an AI power application that will leverage the IVY platform's sensor insight to detect potential driver awareness issues. Their AI model analyzes micro muscles movement such as through steering view sensor data to understand brain activity, and we are pleased to add them to the ecosystems.

在產品方面，本月我們發布了更新版本，顯著增強了雲端功能並增加了硬體和軟體支援。 IVY的開發已經從早期的繁重階段，現在的重點是完善、增強穩定性、擴展感測器支援和改善開發者體驗。 IVY生態系統不斷擴大和成熟。目前，我們有 40 多個合作夥伴正在 IVY 上進行構建，並且有 20 多個預集成解決方案正在供客戶在 POC 試用和行業活動中使用。本月，IVY 創新基金對 CorrActions 進行了最新投資，這是一家令人興奮的以色列新創公司。 CorrActions 開發了一款人工智慧電源應用程序，該應用程式將利用 IVY 平台的傳感器洞察力來檢測潛在的駕駛員意識問題。他們的人工智慧模型分析微肌肉運動，例如透過轉向視圖感測器數據來了解大腦活動，我們很高興將它們添加到生態系統中。

Moving now to Cyber business unit. Revenue for the quarter was $79 million, and total contract value billings were $74 million. Gross margin was 54%, ARR came in at $279 million. The dollar-based net retention rate was stable at 81%. Revenue this quarter was lower than expectation due to deal slippage. BlackBerry along with many others in the cybersecurity space is experiencing elongated deal cycles, deals that require multiple rounds of review and scrutiny, and while this isn't impacting win rates, it's having a real impact on the timing of when the deal close. This is especially true in government where Blackberry has a very strong presence. In particular, a small number of large mainly perpetual deals, which government had a significant portion of in-quarter revenue slipped to later quarters. While this materially will impact Q2 reported revenue, we remain confident with how these deals are progressing and expect them to close this fiscal year. Further, we have a well-defined pipeline of significant deals that are progressing well. These deals are primarily the government vertical, where BlackBerry is well known and trusted and we have strong customer relationships. Due to the overall confidence in the strong improvement in revenue in the second half compared to the first, we are reiterating the full year cyber revenue outlook for the current fiscal year. Because large government deals like these are both complex and binary, we will, of course, update you on the progress made in closing them during the next earnings call.

現在轉向網路業務部門。該季度營收為 7,900 萬美元，合約總價值為 7,400 萬美元。毛利率為 54%，ARR 為 2.79 億美元。以美元計算的淨留存率穩定在 81%。由於交易下滑，本季營收低於預期。黑莓以及網路安全領域的許多其他公司正在經歷漫長的交易週期，交易需要多輪審查和審查，雖然這不會影響獲勝率，但它對交易完成的時間產生了真正的影響。在黑莓擁有強大影響力的政府部門尤其如此。特別是，少數大型永久交易（政府在季度收入中的很大一部分）滑落到了後面幾季。雖然這將對第二季報告的收入產生重大影響，但我們對這些交易的進展仍然充滿信心，並預計它們將在本財年完成。此外，我們擁有明確的重大交易管道，且進展順利。這些交易主要針對政府垂直領域，黑莓在該領域廣為人知且值得信賴，而且我們擁有強大的客戶關係。由於對下半年營收較上半年強勁改善的整體信心，我們重申本財年全年網路收入展望。由於這類大型政府交易既複雜又二元，我們當然會在下一次財報電話會議上向您通報完成這些交易的最新進展。

Let me now highlight some of the deals closed during the quarter. In government, we secured new deals with U.S. Department of Justice, the Department of State, Department of Energy and Department of Education. Also, the internal revenue services, the Canadian Revenue Agency, the U.S. National Nuclear Security Administration, Customs and Border Patrol Protection and the Ministry of Justice in Quebec. Outside of North America, we secured business with the Bank of Italy, Netherlands Share Service Center-ICT as well as the Federal Court, Australia, the Australian Federal Police and the Director General of Force Intelligence in Bangladesh. In fact, we see a good pipeline of opportunities developing in Asia Pacific currently. In addition to government customers, we secured wins leading banks, including Morgan Stanley and Santander as well as with leading technology firms, LG, Philips and Toshiba, just to name a few.

現在讓我重點介紹本季完成的一些交易。在政府方面，我們與美國司法部、國務院、能源部和教育部達成了新協議。此外，還有國內稅務部門、加拿大稅務局、美國國家核子安全管理局、海關和邊境巡邏保護局以及魁北克司法部。在北美以外，我們與義大利銀行、荷蘭共享服務中心-ICT、澳洲聯邦法院、澳洲聯邦警察和孟加拉國部隊情報總監建立了業務。事實上，我們目前在亞太地區看到了良好的發展機會。除了政府客戶外，我們還贏得了摩根士丹利和桑坦德銀行等領先銀行以及 LG、飛利浦和東芝等領先科技公司的客戶。

Moving now to product. Cylance is the pioneer in the use of AI in cybersecurity with AI at the very core of its suites of products long before it became today's buzz word. Our battle-hardened AI model has been trained for many years, continually learning to distinguish threats from non-threats by referencing trillions of data points. Last month, we released a major update to this model, which has been rolled out to our customers, providing an increased level of protection. The model has driven even stronger threat prevention rates than before and further reduced false positive. This release is part of the investment we made in our product portfolio, and these enhancements are being well received by our customers. This is validated by CylanceENDPOINT, our AI-driven prevention, detection and response solution being placed in the top right-hand quadrant for the Gartner's Peer Insights, Customers' Choice. This positioning is based on feedback from real customers, reflecting the experience of our product and us as a company. This pairs nicely with the same recognition we received by BlackBerry UEM in February, where it was the only endpoint management solution identified as a customer choice.

現在轉向產品。 Cylance 是在網路安全中使用人工智慧的先驅，早在人工智慧成為當今的流行詞之前，人工智慧就已成為其產品套件的核心。我們久經沙場的人工智慧模型經過多年訓練，不斷學習引用數萬億個數據點來區分威脅和非威脅。上個月，我們發布了該模型的重大更新，該更新已向我們的客戶推出，提供了更高級別的保護。該模型推動了比以前更高的威脅預防率，並進一步減少了誤報。此版本是我們對產品組合投資的一部分，這些增強功能受到了客戶的好評。 CylanceENDPOINT 對此進行了驗證，我們的 AI 驅動型預防、偵測和回應解決方案被置於 Gartner 同儕洞察、客戶選擇的右上象限。這項定位是基於真實客戶的回饋，反映了我們產品和我們作為一家公司的體驗。這與我們在 2 月獲得 BlackBerry UEM 的認可非常吻合，BlackBerry UEM 是唯一被認定為客戶選擇的端點管理解決方案。

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

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資訊。

Thank you, John.

謝謝你，約翰。

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

像往常一樣，除非另有說明，我對第二季財務表現的評論將採用非公認會計原則術語。

Total company revenue for the quarter was $132 million. IoT revenue was $49 million. Cybersecurity revenue was $79 million, and licensing revenue was $4 million. Software product revenue as a percentage of total revenue remained in the range of 85% to 90% with professional services making up the balance. The percentage of software product revenue that was recurring remained at approximately 90%.

該季度公司總收入為 1.32 億美元。物聯網收入為 4900 萬美元。網路安全收入為 7,900 萬美元，授權收入為 400 萬美元。軟體產品收入佔總收入的比例維持在85%至90%之間，專業服務佔其餘部分。軟體產品收入中經常性收入的比例維持在90%左右。

Total company gross margin was 65%. Operating expenses for the second quarter were $114 million, lower sequentially in part due to onetime costs associated with the patent sale in Q1 that did not recur and the release of some IP-related accruals in Q2. Non-GAAP operating expenses exclude a $6 million fair value gain on the convertible debentures, $10 million in amortization of acquired intangibles, $10 million in stock-based compensation expense, $3 million in restructuring expenses and $1 million in impairment of long-lived assets.

公司總毛利率為65%。第二季的營運費用為 1.14 億美元，環比下降，部分原因是與第一季專利銷售相關的一次性成本沒有重複發生，以及第二季釋放了一些與智慧財產權相關的應計費用。非公認會計準則營運費用不包括600 萬美元的可轉換債券公允價值收益、1,000 萬美元收購的無形資產攤銷、1,000 萬美元的股票補償費用、300 萬美元的重組費用和100 萬美元的長期資產減值。

The non-GAAP operating loss was $28 million, and non-GAAP net loss for the second quarter was $23 million. The $0.04 non-GAAP basic loss per share for the quarter beat expectations. Adjusted EBITDA, excluding the non-GAAP adjustments previously mentioned, was negative $22 million. BlackBerry remains laser-focused on maximizing efficiency and expanding margins, and we remain on course for both positive operating cash flow and non-GAAP EPS in the fourth quarter and for the fiscal year as a whole.

非 GAAP 營運虧損為 2,800 萬美元，第二季非 GAAP 淨虧損為 2,300 萬美元。本季非 GAAP 每股基本虧損為 0.04 美元，超出預期。調整後的 EBITDA（不包括前面提到的非 GAAP 調整）為負 2,200 萬美元。黑莓仍然專注於最大限度地提高效率和擴大利潤，我們仍然致力於在第四季度和整個財年實現正營運現金流和非公認會計準則每股收益。

Total cash, cash equivalents and investments decreased by $59 million to $519 million as of August 31, 2023. Net cash used by operations this quarter was $56 million. The current debentures mature in November, and we intend to fully repay them. With respect to raising any new debt, the outcome of Project Imperium will obviously have a significant bearing on future needs. Accordingly, we are developing clear executable plans for a number of potential scenarios that could arise. That concludes my comments, and I'll turn the call back to John.

截至 2023 年 8 月 31 日，現金、現金等價物和投資總額減少 5,900 萬美元，至 5.19 億美元。本季營運使用的淨現金為 5,600 萬美元。目前的債券將於11月到期，我們打算全額償還。就籌集任何新債務而言，帝國計劃的結果顯然將對未來的需求產生重大影響。因此，我們正在針對可能出現的許多潛在情況制定明確的可執行計劃。我的評論到此結束，我會將電話轉回給約翰。

Thank you, Steve. Before we open the line for Q&A, let me quickly summarize the key messages. While this quarter saw some volatility in reported revenue due to slip deal, we remain confident in the pipeline of opportunities for our cyber business. We expect this to translate into a much stronger second half and subject to successfully closing a number of our larger government opportunities, we expect to finish within our reiterated full year revenue range for cyber. We also remain very confident and excited about the fundamentals of our IoT business. And like cyber, expect a stronger second half, albeit we are taking a prudent view given the delay in the start of some development programs as well as the auto industry labor actions.

謝謝你，史蒂夫。在我們開始問答之前，讓我快速總結一下關鍵訊息。儘管本季報告收入因滑單交易而出現一些波動，但我們對網路業務的機會仍然充滿信心。我們預計這將轉化為更強勁的下半年，並且在成功完成一些較大的政府機會的情況下，我們預計將在我們重申的全年網路收入範圍內完成。我們對物聯網業務的基本面仍然充滿信心和興奮。與網路一樣，預計下半年會更加強勁，儘管考慮到一些開發計劃的啟動延遲以及汽車行業的勞工行動，我們持謹慎態度。

Let me also provide you with an update regarding Project Imperium. The Board and its advisors are very actively engaged in the process and recognize that it is in everyone's interest that will be completed as soon as possible. All stakeholders should rest assure that we will provide an update as soon as we possibly can. That concludes my prepared remarks. We will now take your questions. Operator, could you please open the line for Q&A?

我還向您提供有關帝國計劃的最新消息。董事會及其顧問非常積極地參與這一過程，並認識到盡快完成符合每個人的利益。所有利害關係人應放心，我們將盡快提供更新。我準備好的發言就到此結束。我們現在將回答您的問題。接線員，您可以開立問答線嗎？

Absolutely. We will now begin the question-and-answer session. (Operator Instructions) Our first question today comes from Mike Walkley with Canaccord Genuity.

絕對地。我們現在開始問答環節。 （操作員說明）今天我們的第一個問題來自 Canaccord Genuity 的 Mike Walkley。

The first one is just really on the cybersecurity business. Can you provide a little more granularity on which parts of the cybersecurity driving these big perpetual government contracts that you expect to close? Is it mainly Secusmart or is it kind of evenly spread across the portfolio?

第一個是關於網路安全業務的。您能否更詳細地說明網路安全的哪些部分推動了您希望關閉的這些大型永久政府合約？主要是Secusmart 還是均勻分佈在整個投資組合中？

Mainly Secusmart, also UEM, the Spark platform. So mainly those 2.

主要是Secusmart，還有UEM，Spark平台。所以主要是那2個。

Great. And then I guess on my follow-up question, just any update on how Cylance is trending in the market. You had some good technology there, but some larger companies such as CrowdStrike and others are moving more into the SMB market. Can you maybe talk about how Cylance is faring in the marketplace?

偉大的。然後我想關於我的後續問題，只是關於 Cylance 在市場上的趨勢的任何更新。那裡有一些很好的技術，但一些較大的公司（例如 CrowdStrike 等）正在更多地進入中小企業市場。您能否談談 Cylance 在市場上的表現如何？

Yes. We do actually reasonably well, the numbers are obviously smaller than the competitors. But we do reasonably well in the win rates on SMB. We actually have a pretty good quarter in new logo. And it will continue. I said it many times, our products are now up to class, took us a while. We are working very hard with channel partners to swing them our way. And so once we have more achievement there, we will have more leverage. But clearly, the product could win and guard as a good solution.

是的。我們實際上做得還不錯，數量明顯少於競爭對手。但我們在 SMB 上的勝率相當不錯。事實上，我們在新標誌方面的季度表現相當不錯。而且這種情況還會持續下去。我說過很多次了，我們的產品現在已經達到一流水平，我們花了一段時間。我們正在與通路合作夥伴努力合作，引導他們走向我們的道路。因此，一旦我們在那裡取得更多成就，我們就會擁有更多影響力。但顯然，該產品可以作為一個很好的解決方案來贏得並捍衛。

And our next question today comes from Luke Junk with Baird.

今天我們的下一個問題來自盧克垃圾和貝爾德。

John, for starters, last few quarters here, customer software delays have been we've seen repeat a few times. It just be great to get your perspective on how widespread this issue within your customer base is right now? And most importantly, what the affected customers are telling you, needs to get done to get back on track. You mentioned in the script that you have confidence this will be a relatively short-term timing issue. Could you just expand on the reasons why you believe that to be the case?

約翰，首先，過去幾個季度，我們已經看到客戶軟體延遲重複了幾次。很高興了解您對這個問題目前在您的客戶群中的普遍程度的看法？最重要的是，受影響的客戶告訴您的是，需要完成這些工作才能回到正軌。您在腳本中提到，您有信心這將是一個相對短期的時間問題。您能否詳細說明您認為情況如此的原因？

Right. Okay. That's good question. So the company that are looking at their software design vehicle effort and to push out some and delay either the start of the designs or starting into the production are the really big companies. And some of them are very visible. They announced reorg that actually the outcome favors the software-defined vehicles strategy. And Toyota has announced reorg. VW has announced reorg. And a number of others that we have not announced reorg, and then pardon me for not being able to repeat that because that's customer proprietary information. So they will not be happy with me. So you could guess that sense. However, everybody has kind of tell us it's like not in a precision way, but it's kind of like a 1-year move, 4-quarter move. And frankly speaking, we are in the third or the fourth quarter already. So this is one of the reasons why the team has some really strong pipeline that they believe in for Q4. And as I want to repeat this, we expect Q4 the best quarter in revenue for QNX ever.

正確的。好的。這是個好問題。因此，那些正在研究其軟體設計車輛工作並推出一些軟體並推遲設計開始或開始生產的公司才是真正的大公司。其中一些是非常明顯的。他們宣布重組，結果實際上有利於軟體定義車輛策略。豐田宣布重組。大眾宣布重組。還有一些我們尚未宣布重組的訊息，請原諒我無法重複這一點，因為那是客戶專有資訊。所以他們對我不會滿意。所以你可以猜到那種感覺。然而，每個人都告訴我們，這並不是以一種精確的方式，而是有點像 1 年移動、4 個季度移動。坦白說，我們已經進入了第三或第四季。因此，這就是團隊相信第四季度擁有一些非常強大的管道的原因之一。正如我想重複的那樣，我們預計第四季度是 QNX 有史以來收入最好的季度。

Okay. Great. And then for my follow-up, I'll stay within IoT. Going back to the Analyst Day earlier this year, one of the things that you mentioned strategically was looking to continue to engage more directly with OEMs. Is it Tier 1 and accelerating your OEM account coverage. I'm just wondering to what extent the current delays you're seeing impact your appetite for those sorts of investments in IoT that are outward facing and just how to reconcile that with the overall desire to expand margins?

好的。偉大的。然後，對於我的後續行動，我將留在物聯網領域。回到今年早些時候的分析師日，您策略性地提到的一件事是尋求繼續與原始設備製造商進行更直接的接觸。它是第 1 級並加速您的 OEM 帳戶覆蓋嗎？我只是想知道您所看到的當前延遲在多大程度上影響了您對面向外的物聯網投資的興趣，以及如何將其與擴大利潤的整體願望相協調？

Because we believe our fundamental is so strong and because we believe our new product scalability is so good. We are not slowing down any of our appetite at all. We are steadfast moving forward IoT's hiring people. So we won't worry about us kind of taking our foot off the gas pedal. That's not going to happen.

因為我們相信我們的基礎是如此強大，因為我們相信我們的新產品可擴展性如此之好。我們根本沒有減慢任何食慾。我們堅定不移地推動物聯網人才招募工作。所以我們不用擔心我們的腳會離開油門。那是不會發生的。

And our next question today comes from Tripa Chowdhry with Global Equities Research.

今天我們的下一個問題來自全球股票研究部的 Tripa Chowdhry。

The auto industry seems to be super exciting with QNX and now at least like companies like NXP, they term something like you talk IoT as Edge Square where they put a lot of AI and they call tiny ML that powers these devices. I was wondering like QNX definitely with the low footprint and real-time operating system is ideal. But I was also wondering, have you come across some new sensors, the categories that may have been created because of AI in the Edge and these neural network processors like NXP that they make, the industry Structure is changing. That's my basic question is tiny ML, Edge Square, QNX and some new use cases that may be evolving. So I was wondering if you have any thoughts on that?

汽車產業似乎對QNX 感到非常興奮，現在至少像恩智浦這樣的公司一樣，他們將IoT 之類的東西稱為Edge Square，他們在其中放置了大量人工智慧，並稱之為為這些設備提供動力的微型機器學習。我想知道像 QNX 這樣的低佔用空間和即時作業系統絕對是理想的選擇。但我也想知道，你是否遇到過一些新的感測器，這些類別可能是由於邊緣人工智慧和他們製造的像恩智浦這樣的神經網路處理器而創建的，行業結構正在改變。我的基本問題是微型 ML、Edge Square、QNX 以及一些可能正在發展的新用例。所以我想知道你對此有什麼想法嗎？

Yes, it's a good point. What you're explaining, I read it, it's still early in the industry. And I also want to emphasize the fact that we are an embedded operating system, real-time secure operating systems. And so we tend to go into the MPU type, the central complex, computing complex. So the edge of this, which will be driven with different new use cases. Some of them are AI-based and all that. But that's a level higher than us. And of course, we will be benefiting from it from needing more central compute power. So I guess we do benefit from it. We don't directly go create a selling motion into the Edge, and that Edge selling motion and use cases are created by the code that is on the stack, there's one level above us.

是的，這是一個好點。我讀過你所解釋的內容，這在業界還處於早期階段。而且我還想強調一個事實，我們是一個嵌入式作業系統，即時安全作業系統。因此我們傾向於討論 MPU 類型、中央複合體、計算複合體。因此，這一點的邊緣將由不同的新用例驅動。其中一些是基於人工智慧的等等。但這比我們高一個層次。當然，我們將因需要更多的中央運算能力而受益。所以我想我們確實從中受益。我們不會直接在 Edge 中創建銷售動議，而 Edge 銷售動議和用例是由堆疊上的程式碼創建的，比我們高一級。

Excellent. Yes, I got it. The second question is regarding IVY, phenomenal traction on the developer side apps, I don't know, probably we are about 6, 8 months away from it. But I was wondering, have you come across any new categories of apps that may be coming on top of IVY? And that's all for me.

出色的。是的，我知道了。第二個問題是關於 IVY，它對開發者端應用程式的巨大吸引力，我不知道，可能我們距離它大約還有 6、8 個月的時間。但我想知道，您是否遇到過 IVY 之上可能出現的任何新類別的應用程式？這就是我的全部。

The AI and sensing, actually interesting to tie back to your first question, the different type of sensors that's being demanded in the car, we have seen different types and more increased and more complex. And like one of the examples when I talk about CorrActions was they monitor the sensors on the steering wheel. And then through that, they monitor and they help define the micro muscles of the individual and then dictate or indicate what the status is of the driver on a learners basis and awareness basis. So this is a little bit more esoteric than just measure how much gas you have in the tank or how much charging amps that you still have before you need to do the next charge. So we have seen more and more modern type applications. But I still believe, for the initial usage of IVY is going to be very fundamentally managing the safety and the comfort of the car.

人工智慧和感測，實際上很有趣，可以回到你的第一個問題，汽車中需要不同類型的感測器，我們已經看到了不同的類型，而且越來越多、越來越複雜。就像我談論 CorrActions 時的例子之一一樣，他們監控方向盤上的感測器。然後，他們監控並幫助定義個人的微肌肉，然後在學習者和意識的基礎上指示或指示駕駛員的狀態。因此，這比僅僅測量油箱中有多少汽油或在需要下一次充電之前仍然有多少充電電流要深奧一些。所以我們看到了越來越多的現代類型應用。但我仍然相信，IVY 的最初使用將從根本上管理汽車的安全性和舒適性。

And our next question today comes from Paul Treiber with RBC Capital Markets.

今天我們的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)。

In regards to your comments about Q4 being the best quarter for IoT, how do we think about the momentum beyond Q4? Do you expect it to be carried through to the subsequent year? Or is it more just a 1-quarter phenomenon?

關於您對第四季度是物聯網最好季度的評論，我們如何看待第四季度之後的勢頭？您預計它會延續到下一年嗎？或者這只是一個季度的現象？

No. So it's a good question. I don't believe we're going to have a Q1 FY '25 bigger than Q4. That's what you're asking. But I do believe that we're still following the 20% growth on year-over-year when we presented to you all in the May meeting. So you do expect us to have double-digit growth and pushing to a 20% growth year-over-year. And by then, I hope that this so-called software-defined vehicle efforts delay. And hopefully, everybody seems to have a reasonable handle on supply chain despite of the political situation between U.S., China, Western World and so forth. And so that's gradually getting under control. Electrification is on everybody's, it's in their product specs, so to speak. Although to us, it's really hoping that, that drives more volume of a car, not so much as electric versus gas, we have a difference there. And so if that is removed, then we will start seeing design wins that will turn into developer seats to come into professional services engagement and then will ultimately turn into royalty. So fundamentally, we see nothing concerning at all. We see this as a purely timing issues. And we see it starting to get better in Q4 unless some other industry events like the UAW strike that last longer, that's a little bit out of our control and -- but even the UAW strike, it's not going to last. As you probably know this very well, it's not going to last in perpetuity and because both sides got hurt. So I think they will resolve it. I certainly hope they will, and then we'll get back on track.

不，所以這是一個好問題。我不相信我們的 25 財年第一季會比第四季更大。這就是你要問的。但我確實相信，當我們在 5 月的會議上向大家介紹時，我們仍將實現 20% 的年成長。因此，您確實期望我們實現兩位數的成長，並推動年增 20%。到那時，我希望這種所謂的軟體定義車輛的努力能夠推遲。希望無論美國、中國、西方世界等之間的政治局勢如何，每個人似乎都能合理地處理供應鏈。所以這正在逐漸得到控制。可以說，電氣化存在於每個人的身上，存在於他們的產品規格中。儘管對我們來說，我們確實希望能夠增加汽車的容量，而不是像電動車與汽油車那樣，但我們在這方面是有區別的。因此，如果這一點被刪除，那麼我們將開始看到設計勝利，這些設計勝利將轉變為開發人員席位，進入專業服務參與，然後最終轉變為版稅。所以從根本上來說，我們根本看不到任何值得關注的事情。我們認為這純粹是時間問題。我們看到第四季度情況開始好轉，除非像 UAW 罷工這樣的其他行業事件持續時間更長，這有點超出我們的控制範圍，但即使是 UAW 罷工，它也不會持續下去。正如您可能非常清楚的那樣，這種情況不會永遠持續下去，因為雙方都會受到傷害。所以我認為他們會解決這個問題。我當然希望他們會這樣做，然後我們就會回到正軌。

Okay. And then for my second question, I don't know how much you can answer it, but I'll throw it out there. Just in regards to Project Imperium, I know you can't give specifics, but have you or the Board reached a point where you've narrowed down to a few high-level paths? And can you sort of share the high-level paths?

好的。然後對於我的第二個問題，我不知道你能回答多少，但我會把它扔在那裡。就帝國計劃而言，我知道您無法提供具體細節，但您或董事會是否已將範圍縮小到幾條高級路徑？能分享一下進階路徑嗎？

Yes. I can't comment on it, but the answer is yes.

是的。我無法對此發表評論，但答案是肯定的。

And our next question today comes from Daniel Chan with TD Cowen.

今天我們的下一個問題來自 Daniel Chan 和 TD Cowen。

You expected the strategic review to conclude by the end of summer. And your contract with BlackBerry is quickly approaching. Would it be possible that this review goes past November? Or should we expect something in the next month or so?

您預計策略審查將在夏末結束。您與黑莓的合約即將到期。這次審查有可能超過 11 月嗎？或者我們應該期待下個月左右的事情發生嗎？

I think there is better than 50-50 chance you should expect something sooner.

我認為您應該早點期待的可能性大於 50-50。

Okay. That's helpful. And then maybe another question on the timing. To what extent do you think the uncertainty from the strategic review is having an impact on the near-term financial performance, whether it be from staff productivity or even customers waiting for a conclusion?

好的。這很有幫助。也許還有一個關於時間安排的問題。您認為策略審查的不確定性在多大程度上對近期財務表現產生影響，無論是來自員工生產力，還是來自等待結論的客戶？

No, actually, I mean really seriously. I checked this a lot because that's an obvious concern. And from a customer point of view, no, I don't see there might be 1 or 2 conversations I had, but it kind of like, when I talk to the customer, they say, "Oh, by the way, what's going on there", that kind of thing. And somebody asked me as part of the long conversation and also said, should I be concerned about this? I said, "No, no, you have nothing to be concerned about. When you stand behind everything we do and build and deliver it." So not much really coming, and the sales force hasn't fed back to me about this being a road block or (inaudible). But having said that, the longer it lingers on the works they're going to get. And even though it is not a big worse. So I have no intention -- because of being an operator, I got employees, partners, customers, shareholders to worry about. So we're not going to let this thing. It might take a long time, multiple steps, but there will be some decision made.

不，實際上，我的意思是非常認真的。我對此進行了很多檢查，因為這是一個明顯的問題。從客戶的角度來看，不，我不認為我可能進行過一兩次對話，但這有點像，當我與客戶交談時，他們說，“哦，順便說一句，發生了什麼就在那裡”之類的事情。在漫長的談話中，有人問我，還說，我該擔心這件事嗎？我說：“不，不，你沒有什麼可擔心的。當你支持我們所做的一切、建造和交付它時。”因此，真正的進展並不多，而且銷售人員也沒有向我回饋這是一個障礙或（聽不清楚）。但話雖如此，它在他們將得到的作品上停留的時間越長。儘管情況並沒有那麼糟。所以我無意——因為身為營運商，我要擔心員工、合作夥伴、客戶、股東。所以我們不會讓這件事發生。這可能需要很長時間、多個步驟，但總是會做出一些決定。

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

謝謝。我想將電話轉回黑莓執行董事長兼執行長約翰陳 (John Chen) 致閉幕詞。

Okay. Thank you. Thank you, operator. Before we end today's call, I'd like to remind everyone of an upcoming BlackBerry Summit on October 17 at the Conrad Hotel in New York downtown. The event anchored around the theme of trust has been expanded this year to include IoT, and we have a strong line of keynotes as well as product demos and breakout sessions. You can register to attend at blackberry.com/summit. Stay tuned for more announcement around the event. I thank everybody again for joining the call. I look forward to speaking with you very soon. Thank you.

好的。謝謝。謝謝你，接線生。在結束今天的電話會議之前，我想提醒大家即將於 10 月 17 日在紐約市中心康萊德酒店舉行的黑莓峰會。該活動以信任為主題，今年已擴展到包括物聯網，我們有一系列強大的主題演講以及產品演示和分組會議。您可以在 blackberry.com/summit 上註冊參加。請繼續關注有關活動的更多公告。我再次感謝大家加入這次電話會議。我期待很快與您交談。謝謝。

And thank you, sir. This concludes today's call. Thank you for your participation. You may now disconnect.

謝謝您，先生。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。