BlackBerry Ltd (BB) 2022 Q4 法說會逐字稿

Good afternoon, and welcome to the BlackBerry Fourth Quarter and Full Fiscal Year 2022 Results Conference Call. My name is Brent, 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, BlackBerry Investor Relations. Please go ahead.

下午好，歡迎參加 BlackBerry 第四季度和 2022 財年全年業績電話會議。我的名字是布倫特，我將擔任今天電話會議的主持人。 （操作員說明）。提醒一下，正在錄製本次會議以供重播。我現在想將今天的電話轉給 BlackBerry 投資者關係部的 Tim Foote。請繼續。

Thank you, Brent. Good afternoon, and welcome to BlackBerry's Fourth Quarter and Full Fiscal Year 2022 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. This call is available to the general public via call-in numbers and via webcast in the Investor Information section at blackberry.com.

謝謝你，布倫特。下午好，歡迎參加 BlackBerry 2022 年第四季度和全年收益電話會議。今天與我通話的還有執行主席兼首席執行官 John Chen；和首席財務官 Steve Rai。在我閱讀我們關於前瞻性陳述的警示說明後，約翰將提供業務更新，史蒂夫將審查財務結果。然後，我們將打開電話進行簡短的問答環節。公眾可通過電話號碼和 blackberry.com 的“投資者信息”部分的網絡廣播向公眾提供此電話。

A replay will also be available on the blackberry.com website. 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.

blackberry.com 網站上也將提供重播。我們今天將做出的一些陳述構成前瞻性陳述，並且是根據適用的美國和加拿大證券法的安全港條款做出的。我們將使用諸如期望、將、應該、模型、打算、相信和類似的表達方式來表明前瞻性陳述。前瞻性陳述是基於公司根據其經驗做出的估計和假設，以及對歷史趨勢、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。

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.

許多因素可能導致公司的實際結果或業績與前瞻性陳述中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申報和 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。任何前瞻性陳述僅在今天作出，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 their 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. And with that, I'll turn the call over to John.

按照電話會議的慣例，約翰和史蒂夫將在我們的季度和全年業績摘要中引用非公認會計準則數字。有關我們的 GAAP 和非 GAAP 數字之間的核對，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 網站上找到。有了這個，我會把電話轉給約翰。

Thank you, Tim. We have to change the intro of the script now. Tim has just made Vice President. Congratulations.

謝謝你，蒂姆。我們現在必須更改腳本的介紹。蒂姆剛剛成為副總統。恭喜。

Thank you, John.

謝謝你，約翰。

Good afternoon, everybody, and thank you for joining the call. Let me start today with the IoT business unit. I am pleased to report that we recorded the first $50 million plus quarter since the start of the pandemic, despite the ongoing challenges for the auto industry. Revenue for the quarter came in at $52 million, which is 21% sequential increase and 37% year-over-year growth. Gross margin also increased to 85% and IoT ARR increased for the fourth consecutive quarter to $93 million, which is up 11% year-over-year.

大家下午好，感謝您加入電話會議。讓我今天從物聯網業務部門開始。我很高興地報告，儘管汽車行業面臨持續挑戰，但自大流行開始以來，我們錄得第一個超過 5000 萬美元的季度。本季度收入為 5200 萬美元，環比增長 21%，同比增長 37%。毛利率也增至 85%，物聯網 ARR 連續第四個季度增至 9300 萬美元，同比增長 11%。

In addition to seeing a modest increase in production-based royalty, we set another new record for quarterly revenue from design activities. These revenues come from development seeds and professional services used by the customers to design our QNX software into vehicles and other IoT end points. These streams not only delivered near-term revenue, but also points to long-term business volume once these design enters into production. In addition, we have a good line of sight to upcoming professional services backlog from confirmed design wins and are hiring additional heads to meet the demand. We also have good visibility into the pipeline for potential new design wins in FY '23.

除了看到基於生產的特許權使用費略有增加外，我們還創下了設計活動季度收入的新紀錄。這些收入來自客戶用於將我們的 QNX 軟件設計到車輛和其他物聯網端點中的開發種子和專業服務。一旦這些設計投入生產，這些流不僅帶來了短期收入，而且還指向長期業務量。此外，我們對來自已確認的設計勝利的即將到來的專業服務積壓有很好的了解，並正在招聘更多負責人以滿足需求。我們還對 23 財年潛在的新設計勝利的管道有很好的了解。

In terms of royalty, as I said earlier, we saw some improvement in volume this quarter. However, the challenges for production remain. Major OEMs have indicated continuous supply chain headwinds, in particular, chip shortages, although they expected the situation to largely improve as the year progresses. The conflict in Ukraine has added huge -- a further disruption to an already challenging environment for the auto industry, and we will continue to monitor that impact.

正如我之前所說，在版稅方面，我們看到本季度的交易量有所改善。然而，生產方面的挑戰仍然存在。主要 OEM 表示供應鏈面臨持續的逆風，尤其是芯片短缺，儘管他們預計隨著時間的推移，情況將在很大程度上得到改善。烏克蘭的衝突增加了巨大的影響——進一步破壞了汽車行業已經充滿挑戰的環境，我們將繼續監測這種影響。

You may recall that over the last few years, we have seen a significant increase in the proportion of the QNX business from safety critical foundation software, such as ADAS, Advanced Driver Assist; digital cockpits and autonomous drive. This now constitute the largest part of the total business, overtaking infotainment. This strategy to focus on functional safety plays to QNX's strength and is validated by both the market trends towards ECU consolidation as well as software-defined vehicle. We also see significant growth in safety critical design opportunities in our pipeline.

您可能還記得，在過去的幾年裡，我們看到 QNX 業務中來自安全關鍵基礎軟件的比例顯著增加，例如 ADAS、Advanced Driver Assist；數字駕駛艙和自動駕駛。這現在構成了總業務的最大部分，超過了信息娛樂。這種專注於功能安全的策略發揮了 QNX 的優勢，並得到了 ECU 整合和軟件定義車輛的市場趨勢的驗證。我們還看到我們管道中安全關鍵設計機會的顯著增長。

Gross margin in the quarter improved from 81% to 85%. This is largely driven by the improvement in production royalties. Royalties are due when the vehicle is shipped and there is a little cost for us at this stage of the design life cycle, meaning they have a high gross margin.

本季度毛利率從 81% 提高到 85%。這主要是由於生產特許權使用費的提高。特許權使用費是在車輛發貨時支付的，在設計生命週期的這個階段對我們來說有一點成本，這意味著它們有很高的毛利率。

Let me now turn to the new design wins we secured in the quarter. This was a record quarter in terms of the number of new design wins. We recorded 17, 1-7, 17 new auto designs and 28 wins in the general embedded market.

現在讓我談談我們在本季度獲得的新設計勝利。就新設計獲勝的數量而言，這是一個創紀錄的季度。我們在通用嵌入式市場記錄了 17、1-7、17 種新汽車設計和 28 項勝利。

ADAS registered the most wins in the quarter, followed by digital cockpits and instrument clusters. Once again, we won business with leading automakers and Tier 1 suppliers, including Hyundai, NIO, Bosch, Visteon, Denso. And this is a special for Tim, Skyships, for the new Gordon Murray T.50 hypercar. I just read it. I've seen the picture of it, I should say. Tim showed me the picture.

ADAS 在本季度取得了最多的勝利，其次是數字駕駛艙和儀表組。我們再次贏得了領先汽車製造商和一級供應商的業務，包括現代、蔚來、博世、偉世通、電裝。這是 Tim, Skyships 為新款 Gordon Murray T.50 超級跑車的特別款。我剛讀過。我看過它的照片，我應該說。蒂姆給我看了這張照片。

It was a good picture.

這是一張好照片。

He was quite impressed with that. In GEM, we recorded wins in multiple verticals, including defense and aerospace, industry -- industrial as well as medical, our strongest GEM segment. Like in auto, we have the highest level of functional safety certification for medical, and we're seeing increased momentum there. Design wins this quarter includes analytic devices for use in medical labs as well as for surgical robots.

他對此印象深刻。在 GEM，我們在多個垂直領域取得了勝利，包括國防和航空航天、工業——工業和醫療，這是我們最強大的 GEM 細分市場。就像在汽車行業一樣，我們擁有最高級別的醫療功能安全認證，而且我們看到那裡的勢頭越來越大。本季度的設計勝出包括用於醫學實驗室和手術機器人的分析設備。

Let me now turn to IVY. At CES in January, we demonstrated a product running with live data on Auto Grade hardware. This demonstration formed the basis of many constructive meetings with OEM and as a result, we have multiple additional requests to start proof-of-concept, or we call it POC trials. We currently have more requests than we can handle, which is a nice problem to have. The first POC is with the Chinese EV automaker, electric vehicle, PATEO, a leading Chinese Tier 1 supplier. The plan is to integrate IVY into the digital cockpit.

現在讓我談談IVY。在 1 月份的 CES 上，我們展示了一款在 Auto Grade 硬件上運行實時數據的產品。該演示構成了與 OEM 的許多建設性會議的基礎，因此，我們有多個額外的請求來開始概念驗證，或者我們稱之為 POC 試驗。我們目前的請求數量超出了我們的處理能力，這是一個很好的問題。第一個 POC 是與中國電動汽車製造商、電動汽車、博泰（PATEO），中國領先的一級供應商。該計劃是將 IVY 集成到數字駕駛艙中。

The expectation is for successful POCs to lead to design wins, i.e., a commitment from customers to design IVY into vehicles. The CES demonstration also allow us to showcase 2 of our many potential applications as IVY can enable. CarIQ in-vehicle payment and Electra's AI-driven battery management application were both very well received by OEMs and are included in the IVY POCs. IVY product development remains on track. And last month, we released the latest version of the product that is POC ready. Let me now move into the cybersecurity side of the business.

期望成功的 POC 能夠帶來設計勝利，即客戶承諾將 IVY 設計到車輛中。 CES 演示還使我們能夠展示 IVY 可以實現的眾多潛在應用中的 2 個。 CarIQ 車載支付和 Electra 的人工智能驅動的電池管理應用程序都受到 OEM 的好評，並被納入 IVY POC。常春藤產品開發仍在進行中。上個月，我們發布了支持 POC 的最新版本產品。現在讓我進入業務的網絡安全方面。

This was the third consent quarter of sequential billings growth. Billings not only grew double digits versus Q3, but they also increased year-over-year. Cyber revenue was $122 million. Gross margin improved by 200 basis points to 61%. ARR was $347 million, and dollar-based net retention was 91%. Market conditions for our cybersecurity products are positive. This is in part because of the ongoing heightened level of cyber threats. Our Guard-managed XDR cybersecurity team, in line with other leaders in the space, has seen a significant increase in threats in recent weeks.

這是連續賬單增長的第三個同意季度。與第三季度相比，比林斯不僅增長了兩位數，而且同比增長。網絡收入為 1.22 億美元。毛利率提高了 200 個基點，達到 61%。 ARR 為 3.47 億美元，基於美元的淨留存率為 91%。我們的網絡安全產品的市場條件是積極的。這部分是因為網絡威脅水平不斷提高。我們由 Guard 管理的 XDR 網絡安全團隊與該領域的其他領導者一樣，最近幾週的威脅顯著增加。

In particular, wiper malware, though -- that aims to take the victims' service offline is at an unprecedented level. Some of the most prominent example of this currently identify across the industry, including the HermeticWiper that has been seen in the cyberattack in Ukraine, Latvia and elsewhere. Logs have shown that our product -- our protect product, Protect EPP, has been blocking this malware at BlackBerry's customers' sites before it could execute. The same is also true for WhisperGate, another leading example of wiper malware that has targeted the Ukrainian government as well as Ukrainian nonprofit and IT organizations.

特別是，旨在使受害者的服務脫機的擦除惡意軟件處於前所未有的水平。目前在整個行業中發現了一些最突出的例子，包括在烏克蘭、拉脫維亞和其他地方的網絡攻擊中看到的 HermeticWiper。日誌顯示，我們的產品——我們的保護產品 Protect EPP，已經在黑莓客戶的網站上阻止了這種惡意軟件，然後才可以執行。 WhisperGate 也是如此，這是另一個針對烏克蘭政府以及烏克蘭非營利組織和 IT 組織的擦除惡意軟件的主要示例。

In fiscal year '22, we released 48 new products. Among the cybersecurity products, pipeline growth is strongest for the following 3: Gateway Zero Trust Network Access or ZTNA, Guard-managed service and Persona behavioral analytics. On the marketing front, we're going to leverage the strength of the Cylance brand for our Cylance products. The brand still resonated strongly with customer and across the industry.

在 22 財年，我們發布了 48 款新產品。在網絡安全產品中，以下 3 個產品的管道增長最為強勁：網關零信任網絡訪問或 ZTNA、Guard 託管服務和 Persona 行為分析。在營銷方面，我們將利用 Cylance 品牌的優勢來開發我們的 Cylance 產品。該品牌仍然在客戶和整個行業中引起強烈共鳴。

Investors have said that hearing how our cyber products are competing out in the field is helpful. So let me provide you with a couple of recent wins -- recent examples of wins. The first is with a leading publicly traded medical supplies conglomerate based in the United States. The customers, like many others were struggling to staff a 24/7 security operations centers and held a competitive tender process between BlackBerry, CrowdStrike and Arctic Wolf. They bought more than 10,000 license of our Guard-managed service due to BlackBerry performance and security credentials.

投資者表示，了解我們的網絡產品在該領域的競爭情況很有幫助。因此，讓我為您提供一些最近的勝利——最近的勝利示例。第一個是總部位於美國的領先的公開交易醫療用品集團。與許多其他客戶一樣，這些客戶都在努力為 24/7 安全運營中心配備人員，並在 BlackBerry、CrowdStrike 和 Arctic Wolf 之間進行了競爭性招標過程。由於 BlackBerry 的性能和安全憑證，他們購買了超過 10,000 個我們 Guard 託管服務的許可證。

The second is with a leading manufacturer based in Asia, that selected BlackBerry over CrowdStrike, Fortinet and Carbon Black. Following a detailed POC, they selected BlackBerry because of our product's strong performance and covering multiple threats during the trial. Legacy signature-based vendors still account for a significant portion of the overall market, especially with SMB customers. This was always an area of focus for Cylance. An example of the recent wins there was with logistic company that held a bake-off to replace their current McAfee and Microsoft Defender solution. After a vigorous assessment that included McAfee, Symantec and CrowdStrike, they bought approximately 2,000, 3-year license for our Guard advanced product because we detected a number of threats that others didn't and as well as providing a higher level of customer services.

第二個是亞洲領先的製造商，它選擇了黑莓而不是 CrowdStrike、Fortinet 和 Carbon Black。在詳細的 POC 之後，他們選擇了 BlackBerry，因為我們的產品性能強大，並且在試用期間涵蓋了多種威脅。傳統的基於簽名的供應商仍佔整個市場的很大一部分，尤其是對於 SMB 客戶。這一直是 Cylance 關注的領域。最近贏得勝利的一個例子是物流公司舉行了一次烘烤，以取代他們當前的 McAfee 和 Microsoft Defender 解決方案。在包括 McAfee、Symantec 和 CrowdStrike 在內的積極評估之後，他們為我們的 Guard 高級產品購買了大約 2,000 個為期 3 年的許可證，因為我們檢測到了許多其他人沒有發現的威脅，並且提供了更高水平的客戶服務。

Let me also provide you with an update on talent acquisition. Building on the progress we made last year in ramping the sales force, we have been successful in adding further industry experience through the cybersecurity expertise we already have at BlackBerry. This quarter, we not only recruited sales leaders from direct rivals, but product development leaders also. Cyber is a hot market for talent right now. So we're really pleased with our ability to attract and retain high-quality people. As stated earlier, ARR came in at $347 million. This is a decrease of $11 million compared to our prior quarter and was driven by 2 key factors.

讓我也為您提供有關人才獲取的最新信息。基於我們去年在擴大銷售隊伍方面取得的進展，我們已經通過我們在 BlackBerry 已經擁有的網絡安全專業知識成功地增加了更多的行業經驗。本季度，我們不僅從直接競爭對手那裡招聘了銷售主管，還招聘了產品開發主管。網絡現在是人才的熱門市場。因此，我們對我們吸引和留住高素質人才的能力感到非常滿意。如前所述，ARR 為 3.47 億美元。與我們上一季度相比，這減少了 1100 萬美元，這是由兩個關鍵因素驅動的。

The first factor was that in January, we ceased operation for legacy BlackBerry mobile devices. This move allows us to save significant infrastructure costs going forward. However, revenue for the enhanced SIM-based licensing or we call it ESBL, are also ended as a result. The second factor impacting ARR was the churn in smaller UEM customers. Recently, we have seen a trend towards some less feature-rich UEM products being sold by some of our competitors as part of the bundles or enterprise license agreement. BlackBerry UEM on the other hand, is a premium product that offers a very high level of security. We've seen some smaller, more price-sensitive customers chose to use the "free" UEM products that's come with their bundles to save incremental costs at the expense of security. However, these customers represent a relatively small portion of our UEM base. It is also important to note that our leading security profile continues to resonate strongly with our large core customer base of the largest bank and government agencies. To reinforce this point, this quarter, we secured UEM renewal with U.S. Air Force, the U.S. Department of Defense, the U.S. National Grid as well as a number of international governments including Poland Ministry of Foreign Affairs, Northern Ireland Department of Finance and Personnel, along with Swedish and Italian governments, just to name a few.

第一個因素是在 1 月份，我們停止了舊版 BlackBerry 移動設備的運營。這一舉措使我們能夠節省大量的基礎設施成本。然而，增強型基於 SIM 的許可或我們稱之為 ESBL 的收入也因此而終止。影響 ARR 的第二個因素是小型 UEM 客戶的流失。最近，我們看到一些競爭對手作為捆綁或企業許可協議的一部分出售一些功能較少的 UEM 產品的趨勢。另一方面，黑莓 UEM 是一款高級產品，可提供非常高的安全性。我們已經看到一些規模較小、對價格更敏感的客戶選擇使用捆綁包隨附的“免費”UEM 產品，以犧牲安全性為代價來節省增量成本。然而，這些客戶只占我們 UEM 基礎的一小部分。同樣重要的是要注意，我們領先的安全配置繼續與我們最大的銀行和政府機構的龐大核心客戶群產生強烈共鳴。為了加強這一點，本季度，我們與美國空軍、美國國防部、美國國家電網以及包括波蘭外交部、北愛爾蘭財政和人事部在內的一些國際政府簽訂了 UEM 更新協議，以及瑞典和意大利政府，僅舉幾例。

Among the major bank this quarter, we renewed with Deutsche Bank, along with well-known American, Canadian and Indian banks, 2 major Swiss banks, including the Swiss National Bank and a global credit card company. We also recently renewed for 3 years with global law firm, White & Case. As a law firm, they handle confidential data on a continuous basis, and they felt that none of our competitors met their security needs better than BlackBerry. During the quarter, we also successfully upsold Cylance cybersecurity product to this and other UEM customers. It is likely that we will continue to see some headwinds for UEM in the near term, but we are taking steps to minimize that impact. This includes looking at ways to bundle BlackBerry UEM with other partners' products that appeal to the mid-market as well as continue to develop new features that our customers value. Stay tuned for future updates on this.

在本季度的主要銀行中，我們與德意志銀行以及美國、加拿大和印度的知名銀行、瑞士國家銀行和一家全球信用卡公司等兩家主要瑞士銀行進行了續約。我們最近還與全球律師事務所 White & Case 續簽了 3 年。作為一家律師事務所，他們持續處理機密數據，他們認為我們的競爭對手中沒有一個比黑莓更能滿足他們的安全需求。在本季度，我們還成功向該客戶和其他 UEM 客戶追加銷售 Cylance 網絡安全產品。在短期內，我們可能會繼續看到 UEM 面臨一些不利因素，但我們正在採取措施將這種影響降至最低。這包括尋找將 BlackBerry UEM 與其他合作夥伴的產品捆綁在一起以吸引中端市場以及繼續開發我們客戶重視的新功能的方法。請繼續關注這方面的未來更新。

Before I wrap up my comments on cybersecurity, I'd like to share that going forward, we will start to provide quarterly billings information for our cyber business as part of our ongoing reporting. We believe that this will be well received by shareholders and help them more clearly see the progress that the business will be making.

在結束對網絡安全的評論之前，我想分享一下，我們將開始為我們的網絡業務提供季度賬單信息，作為我們持續報告的一部分。我們相信這將受到股東的好評，並幫助他們更清楚地看到業務將取得的進展。

Moving on to licensing. On January 31, this year, we announced that we entered into an agreement for the sale of the legacy portion of our patent portfolio. The sales price is $600 million with $450 million being due at the close and the remaining $150 million due in installments. I'm pleased to report that the transaction has successfully cleared a regulatory review stage, having received approval from the Canadian Government Investment Review Division on March 22 as well as the U.S. HSR approval, the antitrust approval that is, shortly before that.

繼續許可。今年 1 月 31 日，我們宣布就出售我們專利組合的遺留部分達成了一項協議。銷售價格為 6 億美元，其中 4.5 億美元在收盤時到期，其餘 1.5 億美元分期付款。我很高興地報告，該交易已成功通過監管審查階段，已於 3 月 22 日獲得加拿大政府投資審查部門的批准以及美國 HSR 的批准，即在此之前不久的反壟斷批准。

Completion of the remaining closing condition, including financing, is target for the end of this quarter. Following the sale of the legacy portion of the IT portfolio, we will still retain all patents related to our core IoT and cyber -- software businesses. We will, of course, keep the door open for future monetization, but revenue is likely to be minimal in the near term. Upon the closure of the deal, we expect a reduction in the operating costs required to maintain our IP portfolio.

完成剩餘的成交條件，包括融資，是本季度末的目標。在出售 IT 產品組合的遺留部分後，我們仍將保留與我們的核心物聯網和網絡軟件業務相關的所有專利。當然，我們將為未來的貨幣化敞開大門，但短期內收入可能很少。交易完成後，我們預計維持我們的知識產權組合所需的運營成本會降低。

Also, our cash position will be strengthened, enabling us to further invest for growth in our core markets, i.e., the QNX, IVY as well as cyber. We will invest both organically and inorganically. In the quarter, licensing revenue was $11 million, beating expectation; gross margin came in at 55%. I'd like -- I'll now hand over to Steve to provide additional color on the financials. Steve?

此外，我們的現金狀況將得到加強，使我們能夠進一步投資於我們的核心市場的增長，即 QNX、IVY 和網絡。我們將進行有機和無機投資。本季度，許可收入為 1100 萬美元，超出預期；毛利率為 55%。我想 - 我現在將交給史蒂夫來為財務提供額外的顏色。史蒂夫?

Thank you, John. As usual, my comments on our financial performance this past quarter will be in non-GAAP terms, unless otherwise noted. And also, please refer to the supplemental table in the press release for the GAAP and non-GAAP details. Total company revenue for the quarter was $185 million. Fourth quarter total company gross margin was 68%. Our non-GAAP gross margin excludes stock compensation expense of $1 million. Fourth quarter operating expenses were $117 million. Our non-GAAP operating expenses exclude $22 million in amortization of acquired intangibles, $4 million in stock compensation expense, a $165 million fair value gain on the convertible debentures.

謝謝你，約翰。像往常一樣，除非另有說明，否則我對上一季度財務業績的評論將採用非公認會計原則。此外，有關 GAAP 和非 GAAP 詳細信息，請參閱新聞稿中的補充表格。本季度公司總收入為 1.85 億美元。第四季度公司總毛利率為 68%。我們的非公認會計原則毛利率不包括 100 萬美元的股票補償費用。第四季度運營費用為 1.17 億美元。我們的非公認會計原則運營費用不包括 2200 萬美元的收購無形資產攤銷、400 萬美元的股票補償費用、1.65 億美元的可轉換債券公允價值收益。

As John mentioned, we are continuing to invest in our core IoT and cyber businesses, including headcount growth and new product development to drive top line growth. The planned investment is sizable. We expect to increase headcount by approximately 250 people across both of our core business units this fiscal year. This quarter, non-GAAP operating profit was $8 million and non-GAAP net profit was $6 million. Our basic GAAP earnings per share was $0.25, while non-GAAP earnings per share was $0.01 in the quarter. Our adjusted EBITDA was positive $20 million excluding the non-GAAP adjustments previously mentioned.

正如約翰所說，我們將繼續投資於我們的核心物聯網和網絡業務，包括員工人數增長和新產品開發，以推動收入增長。計劃投資規模可觀。我們預計本財年我們兩個核心業務部門的員工人數將增加約 250 人。本季度，非美國通用會計準則營業利潤為 800 萬美元，非美國通用會計準則淨利潤為 600 萬美元。我們本季度的基本 GAAP 每股收益為 0.25 美元，而非 GAAP 每股收益為 0.01 美元。不包括前面提到的非公認會計原則調整，我們調整後的 EBITDA 為正 2000 萬美元。

I will now provide a breakdown of our revenue in the quarter. Cybersecurity revenue was $122 million, and IoT revenue was $52 million. Software product revenue remained in the range of 80% to 85% of the total, with professional services making up the balance. The recurring portion of software product revenue remained at approximately 80%. Licensing and other revenue was $11 million, given the ongoing limitations to monetization activity prior to closing the sale of the transaction that John referred to.

我現在將提供本季度收入的明細。網絡安全收入為 1.22 億美元，物聯網收入為 5200 萬美元。軟件產品收入佔總收入的比重保持在 80% 至 85% 之間，其中專業服務收入佔總收入的比重。軟件產品收入的經常性部分保持在約 80%。鑑於在約翰提到的交易完成之前對貨幣化活動的持續限制，許可和其他收入為 1100 萬美元。

I'll now move to our balance and cash flow performance. Total cash, cash equivalents and investments remained consistent at $770 million as at February 28, 2022. Our net cash position remained at $405 million. Despite the ongoing investment in the business, we generated positive free cash flow of $8 million. Cash generated from operations was $10 million and capital expenditures were $2 million. That concludes my comments, and I'll now turn the call back to John.

我現在將轉到我們的餘額和現金流表現。截至 2022 年 2 月 28 日，現金、現金等價物和投資總額保持在 7.7 億美元。我們的淨現金頭寸保持在 4.05 億美元。儘管對該業務進行了持續投資，但我們產生了 800 萬美元的正自由現金流。運營產生的現金為 1000 萬美元，資本支出為 200 萬美元。我的評論到此結束，我現在將電話轉回給 John。

Thank you, Steve. Let me provide the outlook for the new fiscal year. Licensing revenue is expected to be minimal, excluding anything related to the patent sale. For the cyber business, we expect to deliver billings growth between 8% to 12% this fiscal year, mainly as a result of increased traction from our security products. In fact, we expect to see higher billings in all 4 quarters when compared to the same quarter in the prior year. However, we model revenue for the year in total to be broadly flat year-over-year, factoring in the time for billings growth to convert to revenue.

謝謝你，史蒂夫。讓我提供新財政年度的展望。許可收入預計將很少，不包括與專利銷售相關的任何內容。對於網絡業務，我們預計本財年的賬單增長將在 8% 至 12% 之間，這主要是由於我們的安全產品的吸引力增加。事實上，與去年同期相比，我們預計所有 4 個季度的賬單都會增加。但是，我們將全年的總收入建模為與去年同期相比大致持平，考慮到賬單增長轉化為收入的時間。

Despite having delivered 3 consecutive quarters of billings growth of cyber, we're not satisfied with our results, particularly in ARR. We will -- we feel, however, positive about the trajectory of this business for a number of reasons. First is the cyber market is strong and demand appears to get stronger; second, following our recent product enhancement, the performance of our product is being recognized. A good proxy for this is winning awards in independent testing, example, including receiving the maximum AAA rating in the SC Lab's recent Enterprise Advanced Security test. Third is that we have increased the number of sales reps since the start of our fiscal year, and we'll continue to step up and expand hiring. Our plan is to recruit more than 100 additional cyber go-to-market professional in the coming fiscal year. Fourth, we continue to record head-to-head wins against our competitors.

儘管連續 3 個季度實現了網絡賬單增長，但我們對我們的結果並不滿意，尤其是在 ARR 方面。但是，出於多種原因，我們將對該業務的發展軌跡感到樂觀。一是網絡市場強勁，需求趨旺；其次，隨著我們最近的產品改進，我們產品的性能正在得到認可。一個很好的代表是在獨立測試中獲獎，例如，包括在 SC 實驗室最近的企業高級安全測試中獲得最高 AAA 評級。第三，自本財年開始以來，我們增加了銷售代表的數量，我們將繼續加強和擴大招聘。我們的計劃是在下一個財政年度再招聘 100 多名網絡上市專業人士。第四，我們繼續與競爭對手進行正面交鋒。

Now switch to the IoT business. For the IoT business, we expect to see continued strong growth despite the ongoing headwind for the auto industry. We expect revenue for the year to be in the range of $200 million to $210 million, representing a 12% to 18% growth year-over-year.

現在切換到物聯網業務。對於物聯網業務，儘管汽車行業面臨持續逆風，我們預計仍將繼續強勁增長。我們預計今年的收入將在 2 億美元至 2.1 億美元之間，同比增長 12% 至 18%。

Despite the macro environment for the auto industry, we based our confidence of the following factors: first, the visibility of the backlog of professional services from design wins already awarded; second, the strong pipeline of potential new design wins this coming year; and thirdly, the upward trend in the royalty ASP in the new designs. We see a fairly even distribution of revenue across the 4 quarters.

儘管汽車行業的宏觀環境，我們對以下因素的信心是基於以下因素：第一，設計專業服務積壓的知名度已經獲得獎勵；第二，潛在新設計的強大管道贏得了來年；第三，新設計的版稅 ASP 呈上升趨勢。我們看到四個季度的收入分佈相當均勻。

Before we move to Q&A, let me quickly summarize the key points for the quarter. The IoT business is executing well despite industry-level challenges, and we're encouraged by the line of sight we have for the years to come. IVY continues to execute well with both a new product release and strong demand for POC trials in the quarter. Our cybersecurity business is tracking in the right direction, once again delivering solid building growth and recording some encouraging head-to-head wins. And the sale of our noncore IP patent portfolio is progressing. Despite our ongoing investment in the business, we generated positive operating cash flow and net profit this quarter.

在進入問答環節之前，讓我快速總結一下本季度的要點。儘管存在行業層面的挑戰，物聯網業務仍表現良好，我們對未來幾年的視線感到鼓舞。隨著新產品的發布和本季度對 POC 試驗的強勁需求，IVY 繼續表現良好。我們的網絡安全業務正朝著正確的方向發展，再次實現了穩健的建築增長，並取得了一些令人鼓舞的正面交鋒。我們的非核心 IP 專利組合的銷售正在取得進展。儘管我們對該業務進行了持續投資，但本季度我們產生了正的經營現金流和淨利潤。

That concludes my remark. Brent, could you please open the line for Q&A?

我的發言到此結束。布倫特，你能打開問答熱線嗎？

(Operator Instructions). Your first question comes from the line of Daniel Chan with TD Securities.

（操作員說明）。您的第一個問題來自道明證券的 Daniel Chan。

Another strong quarter of strong general embedded wins. It's been a few quarters now where you've seen more general embedded wins than auto. What is -- how does the lifetime revenue stream look for some of these programs with respect to production royalties versus designs? Because I assume that some of these new wins in general embedded have lower volumes than what you typically see in an auto space. So can you just remind us how the revenue streams are structured for the general embedded space?

又一個強強通用嵌入式勝出。幾個季度以來，您已經看到比汽車更普遍的嵌入式勝利。什麼是 - 在生產版稅與設計方面，這些節目的終生收入流如何？因為我認為這些新產品中的一些一般嵌入式產品的銷量低於您通常在汽車領域看到的銷量。那麼您能否提醒我們一般嵌入式空間的收入流是如何構成的？

Yes. You're talking about general embedded or you're talking about auto?

是的。您是在談論通用嵌入式還是在談論汽車？

General embedded.

一般嵌入式。

General embedded, you see the production being a lot sooner on average, probably a couple of years out versus 6 or 7 or 5 or 6 years. So typically not as big in terms of dollar on the ASP. Or it was a big organization like a hospital or medical devices, then the volume isn't as big as the car industry. But it's still very, very healthy. Now general embedded vertical, I think we -- I mentioned medical, that's a really good field. We're winning a lot. We have good momentum in there and because of the safety certification. There are other general embedded markets that are really not as economically exciting. That's a better way to say it. So we use -- we tend to stay away from those.

一般嵌入式，您會看到生產平均要快得多，可能需要幾年時間，而不是 6 或 7 或 5 或 6 年。因此，在 ASP 上以美元計算通常沒有那麼大。或者是像醫院或者醫療器械這樣的大機構，那麼體量就沒有汽車行業那麼大。但它仍然非常非常健康。現在一般嵌入式垂直，我認為我們 - 我提到了醫療，這是一個非常好的領域。我們贏了很多。由於安全認證，我們在這方面勢頭良好。還有其他一般嵌入式市場在經濟上確實不那麼令人興奮。這是一個更好的說法。所以我們使用——我們傾向於遠離那些。

That's helpful. And then on the headcount increase, I think you mentioned you guys are budgeting for an increase of 250 people this year. Just wondering where that's going. I think you mentioned 100 going towards cybersecurity sales professionals. Where are the rest going?

這很有幫助。然後關於員工人數的增加，我想你提到你們今年預算增加 250 人。只是想知道這是怎麼回事。我想你提到了 100 個面向網絡安全銷售專業人士。剩下的去哪兒了？

To IoT. The IoT -- a lot of them, I mean, of course, the sales personnel, but also we have a lot of backlog in professional services. So we need to fulfill those backlog and get the revenue.

到物聯網。物聯網——其中很多，我的意思當然是銷售人員，但我們在專業服務方面也有很多積壓。所以我們需要完成那些積壓的工作並獲得收入。

Your next question comes from Trip Chowdhry with Global Equity Research (sic) [Global Equities Research].

您的下一個問題來自全球股票研究 (原文如此) [全球股票研究] 的 Trip Chowdhry。

John, another very strong quarter on Cylance. A very quick question. I was wondering like if you could put some more color to it. Like what kind of activity was, say, before the Ukraine war and while we are in the war, you're getting a lot of interest in Cylance. Where is that interest coming from? Is it from U.S.-based companies or European-based companies or the whole world? Just provide us some anecdotal comments what you are hearing? I would appreciate that. And again, a very good quarter.

約翰，Cylance 的另一個非常強勁的季度。一個非常快速的問題。我想知道你是否可以給它增加一些顏色。比如在烏克蘭戰爭之前和我們在戰爭中的時候，你對 Cylance 產生了很大的興趣。這種興趣從何而來？是來自美國公司還是歐洲公司或全世界？只需向我們提供一些您所聽到的軼事評論？我會很感激的。再一次，一個非常好的季度。

Thank you. So the cybersecurity world is -- there are a lot of more threats and attack. And we see demand growing -- raw demand growing. Like everybody else in the market have seen, the raw demand is really growing very fast. There are also a replacement market for the older generation signature-based company like McAfee and Symantec and Microsoft. So you can see the second generation, the AI/ML-based company like ourselves and some of the names and key names in the industry. We could do a lot of -- a good success rate in replacing legacy implementation.

謝謝你。所以網絡安全世界是——有更多的威脅和攻擊。我們看到需求在增長——原始需求在增長。就像市場上的其他人所看到的那樣，原始需求確實增長得非常快。對於像邁克菲、賽門鐵克和微軟這樣的老一代基於簽名的公司，還有一個替代市場。所以你可以看到第二代，像我們這樣的基於 AI/ML 的公司以及行業中的一些名稱和關鍵名稱。我們可以做很多——在替換遺留實施方面取得良好的成功率。

So that's the second one. Cylance is particularly strong in the mid-market, small medium business mid-market. And I think we're seeing our activity picked up quite nicely, partly because of the Guard software that we released about, probably by now, it's about a year. And so -- and if we could see that trend up continuously every quarter, and so the number is starting to become meaningful. So those are probably the drivers of what is happening.

所以這是第二個。 Cylance 在中端市場、中小型企業中端市場尤為強勁。而且我認為我們看到我們的活動得到了很好的恢復，部分原因是我們發布了 Guard 軟件，可能到現在為止，它已經大約一年了。所以——如果我們能看到這個趨勢每個季度都在持續上升，那麼這個數字就開始變得有意義了。所以這些可能是正在發生的事情的驅動因素。

And then last but not least, remember, we've been hiring aggressively for over a year now in the sales headcount. And so it's starting to pay off in some area. And last but not least, we've been able to attract some very strong industry talent from the cyber world. And particularly under John Joe Giamatteo because he came from McAfee and so he knows how to recruit a lot of these people. And not only individuals, but also channel partners. So things are starting to come together. Still have ways to go, but it's starting to come together.

最後但同樣重要的是，請記住，一年多來，我們一直在積極招聘銷售人員。所以它開始在某些領域得到回報。最後但同樣重要的是，我們已經能夠從網絡世界吸引一些非常強大的行業人才。尤其是在 John Joe Giamatteo 的領導下，因為他來自 McAfee，所以他知道如何招募很多這樣的人。不僅是個人，還有渠道合作夥伴。所以事情開始走到了一起。還有很長的路要走，但它開始走到一起。

I just have one observation, which is -- I just wanted to share with you. The IVY platform providing machine learning, AI-driven battery management system, none of that system, which is AI-driven for BMS, battery management system, exist anywhere. Not even the biggest EV manufacturers has that. I think this is very unique to your IVY platform. Keep it up.

我只有一個觀察，那就是-- 我只是想和你們分享。提供機器學習、人工智能驅動的電池管理系統的IVY平台，在任何地方都不存在這種由人工智能驅動的電池管理系統、電池管理系統。即使是最大的電動汽車製造商也沒有。我認為這對於您的 IVY 平台來說是非常獨特的。繼續努力吧。

Okay. Thank you. Thank you much.

好的。謝謝你。非常感謝。

(Operator Instructions) Your next question comes from Paul Treiber with RBC Capital Markets.

（操作員說明）您的下一個問題來自 RBC Capital Markets 的 Paul Treiber。

Just a question on go-to-market strategy in cyber. And it's just -- you mentioned UEM is obviously strong in large enterprise, but then Cylance is strong in SMB. How do you bridge those 2 businesses from a go-to-market perspective because the customer base is -- and your competitive advantages within each seem quite divergent?

只是關於網絡市場營銷策略的問題。只是——你提到 UEM 在大型企業中顯然很強大，但 Cylance 在 SMB 中很強大。從進入市場的角度來看，您如何將這兩項業務聯繫起來，因為客戶群是——而且您在每項業務中的競爭優勢似乎都大相徑庭？

Yes, that's a great question. So we now have 3 go-to-market team that is coordinated under -- by region under one senior management. And so because of John G. And so the 3 market, go-to-market team are the name -- think about it as strategic accounts, which are the large government as well as banks, regulated industry; the SMB market and the channel team.

是的，這是一個很好的問題。因此，我們現在有 3 個上市團隊，由一名高級管理人員按地區協調。所以因為 John G。所以 3 市場，進入市場團隊就是這個名字——把它想像成戰略客戶，它們是大型政府以及銀行，受監管的行業；中小企業市場和渠道團隊。

So our objective of the first team is to secure our base business in the strategic accounts and then upsell them into -- with technology that could apply to the UEM base, for example, Zero Trust Technology, which is -- the gateway is probably the most talk of right now, particularly the U.S. government. The new Biden administration budget has specific money allocated for Zero Trust, and they want every agency and every armed forces to do that, to be able to implement Zero Trust as part of the overall cybersecurity protection. So we have that business, and we're already in many of those institutions. So the upsell of Cylance product into that space is a key of growth.

所以我們第一個團隊的目標是確保我們在戰略賬戶中的基礎業務，然後將它們追加銷售——使用可以應用於 UEM 基礎的技術，例如，零信任技術——網關可能是現在談論最多的，尤其是美國政府。新的拜登政府預算為零信任分配了專項資金，他們希望每個機構和每支武裝部隊都這樣做，以便能夠將零信任作為整體網絡安全保護的一部分。所以我們有這項業務，而且我們已經在許多這樣的機構中工作。因此，將 Cylance 產品追加銷售到該領域是增長的關鍵。

The second, SMB, two approach. One approach is through the Guard services, the managed service, which SMB typically needs that kind of help for either augment their resources or replace their resources because they can't hire fast enough. And so that led with the Cylance product, and then we upsell UEM into it as more bundled oriented.

第二種，SMB，兩種方法。一種方法是通過託管服務 Guard 服務，SMB 通常需要這種幫助來增加他們的資源或更換他們的資源，因為他們不能足夠快地僱用。因此，以 Cylance 產品為主導，然後我們將 UEM 向上銷售，使其更加面向捆綁。

And then, of course, the channel are typically all cyber. And there's some good channel partners that's going to come online. I'm not at liberty to talk about it right now, but in 90 days, I will. So that's the kind of how we go in with each different type of category of customers. I hope that answers your question.

然後，當然，該頻道通常都是網絡的。還有一些好的渠道合作夥伴將上線。我現在不能談論它，但在 90 天內，我會談論它。這就是我們與每種不同類型的客戶打交道的方式。我希望這能回答你的問題。

Yes, that was helpful, and I can't wait for the announcement in 90 days. Just a second question, just on the sale of the patent portfolio. To the extent that you can, can you just walk through some of the assumptions in terms of like the longer-term outlook that went into that arriving at that price? Because one of the things that investors look at as you look at the revenue in that segment, in the previous year, it was quite a large number. How do we put the sale price in context to the previous revenue that you generated in that segment?

是的，這很有幫助，我已經等不及 90 天了。只是第二個問題，只是關於專利組合的銷售。在可能的範圍內，您能否僅根據達到該價格的長期前景等一些假設來進行分析？因為投資者在查看該細分市場的收入時會看到的一件事，在前一年，這是一個相當大的數字。我們如何將銷售價格與您在該細分市場中產生的先前收入聯繫起來？

Okay. So I would say there's still a lot of potential for this noncore set of patents. But 2 things you obviously you know. One is time is ticking down in the validity of the portfolio. Although we have a very young -- we typically have -- even with the noncore, somewhere around 8 to 10 years type average lifetime with the patent still remaining. So -- but the -- if you notice that -- which you pointed out, the last couple of years -- over the last few years, we have some good success. But those are with very big name.

好的。所以我想說這組非核心專利仍然有很大的潛力。但是有兩件事你顯然知道。一是投資組合有效性的時間正在減少。儘管我們有一個非常年輕的——我們通常有——即使是非核心的，大約 8 到 10 年的類型平均壽命，專利仍然存在。所以 - 但是 - 如果你注意到 - 你在過去幾年中指出的 - 在過去幾年中，我們取得了一些不錯的成功。但那些都是非常有名的。

And so now we need to go -- the business need to go cultivate pipeline for the smaller name, which typically takes a little longer time, a lot more back and forth. Big name does too, but big name at least have big numbers. So in a way that -- the low-hanging fruits we already approached. And so I think the numbers we have done in market test the numbers, we think it's very fair to both sides.

所以現在我們需要去 - 業務需要為較小的名稱培養管道，這通常需要更長的時間，更多的來回。大牌也有，但大牌至少有大數字。所以以某種方式 - 我們已經接近的低垂果實。所以我認為我們在市場上所做的數字測試了這些數字，我們認為這對雙方都非常公平。

There are no further questions at this time. I would like to turn the call back over to John Chen, Executive Chair and CEO of BlackBerry for closing remarks.

目前沒有其他問題。我想把電話轉回給黑莓執行主席兼首席執行官 John Chen 做閉幕詞。

Thank you. I'm pleased to announce that -- by the way, I'm pleased to announce that on May 18, we'll be hosting a hybrid in-person and virtual Analyst Day from San Ramon, California. In some of the questions asked earlier regarding our go-to-market will be addressed by John Giamatteo and Matthias Eriksson, the 2 BU presidents. And I will strongly suggest you don't miss it. In the case of Matthias, we're also going to prepare to annually talk about backlog. That will be during that call -- that meeting also.

謝謝你。我很高興地宣布——順便說一句，我很高興地宣布，5 月 18 日，我們將在加利福尼亞州聖拉蒙舉辦一場面對面和虛擬的混合分析師日。 BU 的兩位總裁 John Giamatteo 和 Matthias Eriksson 將在之前提出的一些關於我們進入市場的問題中進行解答。我強烈建議你不要錯過它。就 Matthias 而言，我們還將準備每年討論積壓工作。那將是在那次電話會議期間——也是那次會議。

So I really encourage investors to join us and hear about key developments of our product and strategy as well as financial focused sessions that will provide additional color on the IoT and cyber business. More detail will be -- will follow in due course, so please stay tuned. Thank you for joining the call today, everyone, and have a good evening. I hope to see you in person soon.

因此，我真的鼓勵投資者加入我們，了解我們的產品和戰略的關鍵發展以及財務重點會議，這些會議將為物聯網和網絡業務提供更多色彩。更多細節將在適當的時候發布，敬請期待。感謝大家今天加入電話會議，祝大家晚上愉快。我希望很快能見到你本人。

Ladies and gentlemen, this concludes today's call. Thank you for your participation. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。