Q3 2020 Earnings Call
Winds will remain on music holding teleconference begins the conference will be getting momentarily. We thank you for your patience.
Come to the Blackberry fiscal year 2020 per quarter results Conference call. My name is Jack and I will be your conference moderator for today's call.
During the presentation, all participants will be in listen only mode.
We will be facilitating a brief question and answer session towards the end of the conference should you need assistance during the cold the signal a conference specialist by pressing Star Zero. As a reminder, this conference is being recorded for replay purposes now like to turn the call over to Christopher <unk> Vice President Finance. Please go ahead Sir.
Thank you Jack welcome to the Blackberry fiscal year, 2023rd quarter results Conference call with me on the call today, our executive Chairman and Chief Executive Officer, John Chen and Chief Financial Officer, Steve right.
After I read our cautionary note regarding forward looking statements John will provide a business update and Steve will then review the financial result, we we'll then open the call for a brief you on a session.
This call is available to the general public via calling numbers and via webcast in the Investor information section.
Library Dot Com a replay will also be available on the Blackberry Dot com website. Some of the statements will be making today constitute forward looking statements and are made pursuant to the safe Harbor provisions of applicable U.S. and Canadian Securities laws will indicate forward looking statements by using words, such as expect well should model.
Intend believe and similar expressions.
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 any other factors that the company believes irrelevant.
Many factors could cause the company's actual results or performance to differ materially from those expressed or implied by the forward looking statements, including the risk factors that are discussing the company's annual information form which is included in our annual report on form 40 F and in our Mdna you should not place undue reliance on the company's forward looking statements. The company has no it.
Tension and undertakes no obligation to update or revise any forward looking statements, except as required by law as is customary during the call John and Steve will reference non-GAAP numbers in there summary of our quarterly results for a reconciliation between our GAAP and non-GAAP numbers. Please see the earnings press release and supplement published earlier today I will now.
I'll turn the call over to John .
[laughter], Thanks, Chris Good morning, everybody and well controlled cool. That's a reminder, I will be using a rather than saying non-GAAP numbers in my summary of quarterly results unless otherwise stated.
Let me start.
I'm encouraged by our progress in the third quarter. That's revenue grew sequentially in all of our software businesses.
The total company revenue was 280 million, calling 23% year over year total software and services revenue was 275 million. It grew at 26% year over year. This is a new record high for the quarter. We also recorded double digit percentage grilling Grove in the same period.
[noise] software and services revenue growth excluding side as was 9% sequentially.
Earnings per share came in at positive free size and reported free cash flow was a positive $37 million.
We continue to invest in product development and go to market to drive long term sustainable growth that's moving.
This is Sam and and that's back book values on commentary, let's start with the I repeat business.
T revenue grew 8% sequentially woman Aiotv both bts.
And yet says.
The enterprise software solutions reported sequential growth in billings and revenue.
It Bts QNX the largest part of BT has continued to perform well.
In the quarter, we had a total of 31 design wins of which 11 were in the automotive market and 20 were in the in general embedded market Weve into general embedded market. We are experiencing good demand in the industrial verticals as noted last quarter Grove into generally general embedded market has been a stated strategic.
Patrick objective and priority for us it this quarter this fiscal year, sorry, this fiscal year.
There were several very positive development in a quarter to align with Blackberry QNX strategic go all the increasing ARPU.
And volume in the auto sectors. These development also extend our market leadership in automotive like to share a few of them with your first I will highlight Hyundai Altron a leader in here 20 control software had selected Blackberry QNX what to design wins, one is in the eight hours.
Design, which has advanced driver assistance and and works well and stay autonomous driving pop on this meaningful because tier one relationship as a meaningful tier one relationship that pro why secretary QNX and opportunity to work directly with Hyundai.
And I happened to be the sixth largest auto OEM in the world and its affiliate and and and we also could work extend to work with its the affiliate for the first time.
In addition to win the winning the traditional Oems, we're also winning with emerging.
Bottoms and I think.
Thank you.
This is.
Chris This sneak this work in here Mark up like Smart start up anyway as far as an example, a rifle and the electric commercial OEM base in the UK have chosen Blackberry QNX S. A safe and secure a foundation again 48 hours features interest in this.
Self driving vehicles in a quarter. We also entered into a partnership with E. Todd.
Hey to develop a safety critical platform using auto saw adaptive standard.
Bosch, the world's largest automotive supplier and the and the parent of de Todd decided to join forces with Blackberry to develop this common software platform that will enable the production is safe and secure connected and autonomous vehicle for the future.
Let me give a brief update on the radar business in a quarter, we added 15, new customer one five.
Including an initial auto 2000 units from CP rail and we're very pleased with that obviously and we had repeated purchase as well and number of our customers, including lows affects event and bimbos bakeries. We also starting to explore expansion into Europe and Middle East Arena.
Now the fuel comment on our enterprise software and services business progress the sales seem just getting back into farm and operating with better discipline and accountability. The team as we start to normal cadence in managing the pipeline and converting the pipeline to billings as a result pipeline increased nicely in both numbers opportunity.
And dollar size since dollar size since the second fiscal quarter.
Revenue for you, yeah AD hoc and second spot or grew sequentially.
These included <unk> contribution for our new continuous authentication Prato, Blackberry intelligent surfaces, we name, but B I, yes.
The I guess is gaining traction in the market as evident by high profile when sensitive such as the department on actual deep the friends in Canada, and Judea Julius Baer group.
Yes, fair, but was one of the oldest and largest banking institution in Switzerland.
And and as a reminder, we only release as part of it you know because.
Next on the customer front I reckon regulated industry business remain healthy and stable we added a number of new logo wins.
In the compared to situation or cause federal government agency worldwide, including in Canada, Germany, Panama, Poland, Romania, Saudi Arabia, as far as United States.
Furthermore, in the United States State Agency, we won the Alaskan Army National Guard and to California Department of Technology, just to name a field.
We also achieved notable progress into <unk> financial services and energy verticals wins like bank of China. This whole bank, we Easton life insurance, where are you seeing like assure that just happened to be the largest life insurance company in Singapore and Malaysia. We also won Scottishpower on all these things on leming adjusted.
Few of our new wins.
On the use at U.S. National Security fun, we partner with khaki international and to provide the first secure and Shutterfly mobile communication applications, utilizing Blackberry cecchi, sweet secure voice and tax secure attacks technology.
The initial target market will be more than 4 million United States government issue Cellphones, Oh application meet the N. assays stringent commercial solution for classified program requirements and it's the only solution or there's calling into fat ramps certification.
Lastly on the products one we introduce silence protract for mobile endpoints this mobile threat defense.
Which now refer to fund Alan as MTD [laughter] <unk>. This this MTD product integration AI endpoint security capabilities from side is and so as far as the endpoint management functionality from you. Yeah. This second a second generation MTD Prado, which we deliver only eight months.
After the close or acquisition demonstrate a collaborative team work of the two development teams. The teams worked very well together to execute a common product roadmap I shared the same vision.
We have a total of 14, one for 14 beta customer, which includes several Tom multinational financial engines institution and notable telecommunication companies. They all have sheer very positive feedback in fact, we receive of course custom older during the quarter.
Children.
Spark Oh secure aiotv pop on the is progressing well with the addition of this to brought up the MTD product I, just mentioned and to be I as product I mentioned earlier.
Moving onto our licensing business revenue increased double digit percentage year over year growth.
We just slightly ahead of expectation for the quarter, we maintained a full year outlook that we provided last quarter for licensing business.
Now onto the Blackberry sinus business revenue increased 13% year over year one story.
Hey are with hundreds of 71 million up 15%, one five year over year.
Oh dollar base net retention rate was 99% and we ended the quarter were 20% year over year Grove in active subscription customers.
We anticipate struggled rolled in the future as we have now release and then has endpoint detection and response that you de all.
Technology product and that's why the single agent a powerful the lack of these features in the past have prevented us from winning more deals that's probably a larger size deals I'll close until now.
By adding back very resources were able to deliver both products at the end of third quarter Ricciardi optics 2.4, we should that you'd be all brought up that I mentioned earlier shipped in October this year, followed by the release of a single agent pipe on our internal Codenamed called cocoon last month, these new products improved capacity to do.
That's a customer cyber security needs across the entire spectrum.
[noise] site as endpoint security is best Snow Boys, AI, driven prediction and production. Our team has won a number of new deals in competitive environments, which are with the enterprise customers a name us the I would name a few for you suggest the M. Bank group in Malaysia, Big International container terminal surfaces in.
The piece the E.S. cooperation did Lloyd and molex into United States.
[noise] into quarter. We also released on managed service offering site ends guard market demand and pipeline has been strong, especially in the SMB a small medium business sector. The complete offering all these products and services will no doubt helped drive stronger revenue growth.
Our next year.
Before I turn the call over to Steve They make a couple of comments regarding the side as integration.
We continue to be ahead in the joint integration efforts, we're achieving a product developments in the synergies, we we discuss where we have announced the acquisition.
According to NPD product, which I discussed earlier that uses to it as well that case that integrated QNX and sidearms technologies together, both of which will be demonstrated at CES in three weeks.
Both customer industry analysts have told us how product meets the needs of a large addressable market of both fixed and mobile endpoint when management and security for endpoints are now converging.
We're now ready to increase sales and marketing synergies as far as partner cross selling.
Given the operational efficiency gains so far we remain comfortable that silence will be accretive in fiscal 2021.
With that let me try to call with the steep rise to provide more details about our financial performance.
Thank you John .
My comments on our financial performance for the fiscal quarter will be a non-GAAP terms unless otherwise noted.
Also please refer to the supplemental table in the press release for the GAAP and non-GAAP details.
We delivered third quarter non-GAAP total company revenue of 280 million and gap total company revenue of 267 million.
I will break down revenue shortly.
Third quarter total company gross margin was 77%.
Our non-GAAP gross margin includes software deferred revenue acquired but not recognized a 13 million.
And excludes restructuring costs of 3 million and stock compensation expense of 1 million.
Operating expenses of 195 million were up sequentially by 2 million as we manage spending while continuing to invest in product development and go to market.
Our non-GAAP operating expenses exclude 35 million and amortization of acquired intangibles, which represents about six cents of GAAP loss per share.
Additionally, our non-GAAP operating expenses exclude 14 million and stock compensation expense.
4 million for software deferred commissions expense acquired 7 million in restructuring costs.
The benefit of 20 million related to the fair value adjustment on the convertible debentures.
non-GAAP operating income was 20 million and non-GAAP net income was 17 million.
non-GAAP earnings per share was three cents in the quarter [noise].
Our adjusted EBITDA was 38 million this quarter, excluding the non-GAAP adjustments previously mentioned.
This equates to an adjusted EBITDA margin of 14%.
I will now provide a breakdown of our revenue in the quarter.
[noise] total software and services revenue was 275 million, representing 98% of total company revenue broken down as follows.
Aiotv accounted for 52% of total revenue.
Blackberry silencer accounted for 19% of total revenue and licensing accounted for 27% of total revenue.
Other revenue of 2% is solely comprise of service access fees.
Surface access fees were $5 million down from 9 million or 44% year over year [noise].
[noise] surface access fees were expected to decline given the continued to wind down of this legacy business.
[noise] recurring software and services revenue, including Blackberry silence was above 90% in the quarter.
Now moving to our balance sheet and cash flow performance.
Total cash cash equivalents at investments were 917 million.
Which increased by 32 million from the previous quarter ended August 31 2019.
Our net cash position was 365 million at the end of the quarter.
[noise] free cash flow before considering the impact of acquisition and integration expenses restructuring costs and legal proceedings was positive 41 million.
Cash generated from operations was 40 million and capital expenditures were 3 million.
That concludes my comments I'll now turn the call back to John to provide our financial outlook.
Thank you Steve.
For fiscal 2020, we're comfortable with a current consensus estimate for the total company, which is approximately 1.1 billion non-GAAP revenue and six cents in non-GAAP profitability. However.
Based on the year to date performance, we expect to do better than the six cents in the non-GAAP profitability of current forecasts indicate more like eight cents earnings per share in fiscal 2020 [noise].
On a longer term basis, we're executing the point out strategy of being their trusted provider a secure communication for endpoints.
Customers an industry analysts agree that the endpoint management of securities markets are converging and customer demand better solution to combat increasing security threat to expanding set of diverse endpoints. All of these up at this year, including the acquisition and the integration of sidearms onto position Blackberry.
That's a lead in this emerging market.
Blackberry has the access to solve the industry problems and we already delivering rather than products, such a zero trust by phone and AI for security.
As far as well and many other different praful products that we believe that we could be a winner in this fast growing 20 billion post market.
We look forward to discussing more of our plan and I'll ask why financial the F. by 21 financial Arlo and our next analyst day, which happened to be April 20 foot in San Ramon.
I will now open the call for QNX.
Jack.
Certainly we will now begin the question and answer session to ask a question you May press star one on your telephone keypad, if you're using the speakerphone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment.
Again press Star one and task. Your question, we'll pause for just a moment to allow an opportunity to signal for questions.
Steven Fox with Cross Research your line is open.
Hey, Steven.
Hi, Good morning, everyone Dimly couple of questions. If I could Ah first of all John you mentioned that the you wait you me I'm revenues rose quarter over quarter, but I didn't quite get the details behind that in the quarter can you maybe just provide some color it's too.
What drove the sequential increase and then looking ahead to the fourth quarter. It looks like you're looking for some further sequential increases in revenues can you talk about where you're most confident in revenues growing fourth quarter versus third quarter, and then I had a quick follow up. Thank you. Okay. Great. Thank you see the yeah, you know the union product.
Yeah, we just happen to if you think about a quarter ago, Oh, we have signaled that the pipeline is still strong we have a little bit of a conversion problems that was in Q2 Q3, we have much better focus on converting the pipeline do revenue.
And so.
So when we were fortunate to close a number of business that we're expecting its really general you yeah as well as you know the customer got him you know the impressed with the products and <unk> and the road map and security.
Especially the Blackberry intelligent security solutions, which are very.
Quite quite.
Hi, slick [laughter] I'd say so myself.
And so so the combination of really a better focus a as well as the day ability to deliver.
The road map, especially in you know above industry.
Category, all caliber of security help us drive more business and yes, we expect to see.
A continuous <unk> continued strengthening of that in Q4.
In humans in particular.
Yeah, Yeah yeah.
Again, all three business has done well I mean, all three components of that all the enterprise software business, we should cecchi smarter than an AD hoc 60 smarter more government base, we have a number of pilots going we've got the very.
Committed partners in khaki, which has happened to be one of the lodgers system integrators in the United see federal governments.
As well as as well as ER and the AD hoc space the AD hoc space, we see a lot opportunities obviously not only the federal capacity federal space. That's why it's a stay in education sector.
Great. That's very helpful. And then just as a quick follow up you mentioned the momentum now building with QNX on a non auto side have you mentioned industrial what is what's the timeline for turning some of those wins into revenues is it much different than auto can you just yes, it should be faster that auto.
So so the design win could go into production a lost sooner.
Hopefully at the bottom of cycle and that deliver into production a little sooner.
Because if you if you will notice the auto business is you got the when the design win with the Oh, you know where the tier one any OEM and then and then and then they would any incorporate into the design of the car and into car comes out in a in a year or two later.
So there was say a pure it in their of at least two to three years that you see a low in the into revenue and then it goes and then it goes up at the ship it.
In a gym market the cycle to the due to market, it's a lot faster than the autos are those sectors.
Okay.
All right. Thank you very much so thank you.
Gus Papageorgiou you with P.I. financial your line is open.
Hey.
Good morning, Thanks for taking my question.
I also just wanted to focus on that.
On the Q next progress on the outside the auto vertical can you can you just talk a little bit about.
The biggest piece in that vertical versus the auto I know that.
Auto like Theres, several QNX modules that go into a or potentially several models that go into the car, but if you look at the non auto can you compare the espy's there and.
I guess could you just kind of highlight what industries, you're having success in.
Yeah.
Corridor, a quarter ago, we're having success and the energy sectors.
And.
I would say <unk> I didn't really focus I didn't really focus on the and the ARPU Oh, He I see but you know kind of an educated guess.
Cash on my part the numbers are probably a little lower on a.
On the ARPU basis, however, the volume was going to be a lot higher.
So I would I would think overall revenue.
On a on a constant runway basis basis will probably be higher than the auto sectors.
Oh by the way I forgot also the medical.
The medical sector.
And over what time line do you think John you'd see that.
The non auto would eclipse auto revenue as I said earlier to see that I I you know the timeline for the 14, Jim is going to be faster. The gestation period is going to be fast on the revenue is going to be faster than a into auto side.
Great. Thank you very much Charles.
[noise] Daniel Bardas with office Securities. Your line is.
Hi, Dan.
Hey, guys, yeah, Thanks for taking my questions.
First I just wanted to ask about silence, it's great to hear about the new EDI our update.
Can you give us a sense of how much of the customer base already buys SDR and obviously just curious to know how significant of an upsell cycle that could be.
It's interesting.
So.
The in general this is a generalized statement in general the SMB market more focus on ETP.
The very large institution I'm more focused on E.D.R. that has always been even prior to Blackberry involvement that's always been debt that that took a walk you. The market is CPP, which is protection more important than remediation.
Hi Tech and remediation so.
There was you know this is the kind of the the ongoing discussion in a in the industry. So the good thing about this quarter is we finally, just put that discussion that Russ. We don't we just we will provide whatever the customer I wouldn't want we have the best CPP technology that market.
Acknowledged.
And now we have a very strongly D.R. as well as single in store Cdis. The other thing about the single agent was also a a factor that customers find a tedious to do multiple install so we could we could not do one and then we also added managed services so very strong line up.
So and so we serve all spectrum of the market the very large which have literally thousands of people like banks are yielding familiar with.
And then you at the very small SMB market, which you know volume wise is quite high.
But they you know these 1000 thousand uses type so so E. P P. Depending on what sector, you're talking about they have a little bit a bias between U.P.D.R.I. I you know the good news about us as we eliminate a bias we don't need to worry about anymore people want TPP. We are the about the past areas in has in it.
Gary.
Okay, Great. That's helpful. And then from my quick follow up on licensing could you just talked about if the recurring level, it's starting to grow and and is that a story for next year, perhaps and maybe in general if you could just give a little bit color on what continues to drive the outperformance on the license yeah. Thanks, Yeah, the recurring part.
We kind of pretty much maintain a relatively steady roughly about 160 million to you.
And and then you know the total number bounces around about 250 million.
And so.
There's a lot of opportunity to do a did do licensing business, Oh, I'm, just a little bit of a hard to predict and its quarterly <unk>. It's not like a cell cycle will the science Oh, you know where you are you could kind of predict a little bit would better accuracy and when you're going to close. It. This one is it's a little bit.
Hi to how to manage and that but on the annual basis.
You should expect us to do a ball hundred 60 million.
In a recurring basis.
And then the rest with them, we will have to bring it in as the quarters developed.
Makes sense, thanks, guys. Okay. Thanks.
[noise], Paul steep with Scotia capital Your line is open.
Morning.
Good morning, John could you talk a little bit about.
The opportunity into 2021, and integrating silence further into that EM based product and how you how you're feeling about dot and what you think this the timing sort of looks like for any uptick on that side.
[laughter] I'd say.
Very good question. Thank you I'm feeling very good about it and a hint is in my script.
We work with a lot of industry analysts, we know from their customer contact we shot.
Hey.
Our customer contact the customer want to have a and more orderly platform to integrate many part of their enterprise software, especially in the security space and this our anything from the endpoint management the application management the.
Management of travelers.
You know accessibility to through the cloud or into the on premise and so far you are they have so many solution. It's just not funny and so we have a very strong.
Platform is spark.
That we will deliver the the zero Trust platform technology, which you involved and combine everything I just name.
Including identity management and so.
We're working extremely hard silence was a very important in part of that puzzles. We now have it we integrated teams working well together, we will deliver the spot platform with zero Trust capability for the combination of both management and security is not only.
Mobile, let's fix also so we're very excited about these things and we would do much more discussion at our analyst day.
Would you are and but.
This is a great opportunity buys and we believe we're not only at the leadership.
The DNA for it and the technology for it you know where early than anybody else.
Right away I'll leave it as bad without getting too excited about telling you the product name.
Got that helps.
Maybe just as a final one to fall one the teaser there.
As I recall, you didnt have the capability around fixed should we think that either one of three options you are either building it and have developed in house would you look to acquire a large existing base would that be something or would it be a partnership and then we'll say happy holidays. Thanks [laughter].
[laughter].
Uh huh.
Why don't I wait to tell you that I.
I don't think acquisition is my.
First choice.
Hi leadership was probably.
More relevant.
I make sense, all I'll wait to hear more in the new year. Thanks, Okay. Thank you happy new year.
Trip Chowdhry with global Equities Research. Your line is open I trip, how you [laughter] I'm doing all again, congratulations on a phenomenal execution.
A couple of questions I would like to ask is a.
When we think about security and especially the new paradigm and wait silence and like Buddy are these days and machine learning and and.
And using that as a way to proactively.
Oh the.
The for.
The security place before it really happens I was wondering what do you think is that even that traditional security have you. It's like Odyssey trend micro semantic they haven't been able to prevent them since stood the new work what is your sense what is happening industry that prevent them from doing something like what you guys are doing.
Well.
True that's a that's a good question then you know I never underestimate our competitors in the markets.
Al Although some good company that you talk about that had built on you know the security paradigm, where there is remote I'd say what do Symantec.
And more PC basin, and so forth I, yeah, I'm I'm sure that they have their development.
Road map and things that they are working on Blackberry you happens that's from one to.
Leap frog, everybody by acquiring silence and so we go through the second generation first without leaving go into the first generation on the Avi side, So and we see the capability that is needed with machine learning as well as you know using machine to do the police.
Leasing.
And the trapping and and the correction of potential attack and threats. So I won't speak the fact that I'm preset blackberries able to execute it.
We had the capacity of the.
The dollars you know you know we paid 1.4 billion.
It was a big.
You know me well I mean that that's a that's a big commitment on our part and it works out we've got great product how would the MTD for example, only a month very piece with that because teams are working well together.
And we have you know great vision together on this will we will be a good player who will be a very strong player in the Io T. security will.
Unifill honestly I was wondering like do you have any update on your partnership with Microsoft on various initiatives.
That you had fostered over the last six months.
Yeah, <unk>, Microsoft and that's where you just you know, we deliver breached product, which put all that Microsoft application.
On our platform in the native in the native mobile so in a way we're competing with Microsoft because they obviously you also deliver into and probably the same goody, but then we have better security at least we think so and though and the customer.
It doesn't have to choose to move away from security to use a Microsoft application and they obviously, a very committed to out most of them a customer very committed Microsoft vacation. So so that though so I think this punish it works well for both.
Yeah, that's wonderful and Steve completely has become the chief revenue officer. So it seems like the he hits the home run right, Oh, Oh, yes, [laughter] yeah. He's he's the one who is a hitting the ball.
Yes, I was just I'm just wondering like yeah then.
John you want to say bids and Steve <unk> billion devoted team did extremely well did the U.S. Federal government I was wondering the RV building a pipeline with the U.S Federal government mid silence of Blackberry products and holds its coming along.
Sorry, I didn't get the.
The like in the U.S Federal government the yeah.
Well, that's coming along like all the building of Oh pipeline would the U.S. federal agencies regarding the product.
We.
Yeah trip, we are very strong in federal.
So just focusing for example in only add hall as a product, which is the crisis management and emergency management alert systems. You know, we have a multi millions of licenses in the United State government with the federal space. So.
Were very strong in and we're continuing to expand that pipeline, so and I spoke a little early about khaki that's actually a very strong according to ship because they're taking us into you know they are the secure communication well in the United States Goldman and so and they have to habitation do and at the present.
The ability to do it and our product meets see hi extended.
For a top secret a door or.
A secret and and so we're doing a lot of things together with not only outsell directly in the federal space, but also with the partners.
James <unk> with Morgan Stanley Your line is open.
Great Hey, Thanks. This is Peter Marshall for James I'm. Just one question for me you spoke about kind of seen better discipline and the pipeline increasing amongst your sales force and I know you were making kind of some changes to go from gathered a hunter mentality and just you know do you consider that complete.
Are there still kind of some transitions under way just.
The sales force mentality, particularly around some of them more legacy products Uh-huh yeah. Thanks.
We have Oh, we establish a framework took us a couple of quarters. There was some there was some.
There are a little bit of a euro glitch on our part when we make some changes.
So those changes up behind us.
So we have a good platform now all now we're doing is to concentrate on not only executing turning to pipeline to billings.
Creating that momentum, but also hiring more of the salespeople that fit into that model and so that's that's a metric said we focus.
A lot on inside the company. So we feel good about where we are now we you know the management team and so far in and we we though we will continue to add I getting adding few to the fire is maybe that's a where we think the way to think about it so.
We feel we're doing pretty good right now.
Great. Thanks, Thank you.
I'd now like to turn the call back over to John Chen Executive Chairman and CEO Blackberry for closing remarks, guys alright, Okay. Thank you everybody for joining us today I hope to see you'll see us and.
Let me do a little commercial and I see a wait and see as we have a booth at an awful.
You know pass we put in there sports cars in.
This time, we have other demonstrated automobile and I I rumor has the will have a motorcycle there too and we're going to show what we're going to show you I see US is obviously the continued it continuation of as advancement of allow QNX technology in auto.
But also to show you the silence integration into the car.
I think that which attract a lot of attention I know some government agency.
People already wanted to come see yeah and have appointment with me. So I hope to see you there and in the meantime have been very happy and save holidays.
This concludes today's call. Thank you for your participation you may now disconnect.