Q3 2020 Earnings Call
Good morning, and welcome to the Blackberry fiscal year, 2023rd 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 call. Please 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 leak Vice President of Finance. Please go ahead, Sir [laughter]. 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 results. We will 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 at Blackberry Dot Com a replay will also be available on the Blackberry Dot Com web site.
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 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 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 discussed in 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 into.
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 turn the call over to John .
[laughter] things, Chris Good morning, everybody and well controlled call. That's a reminder, I will be using Ah Ah referencing non-GAAP numbers in my some real quarterly results unless otherwise stated.
Let me start.
I'm encouraged by our progress in third quarter as revenue grew sequentially in all of our software businesses.
The total company revenue was 280 million totaling 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 billing growth in the same period.
[noise] software and services revenue grow excluding side as was 9% sequentially.
Earnings per share came in at positive free sense 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.
In the business as having been a at UBS.
Provide you some commentary, let's start with the ice tea business.
T revenue grew 8% sequentially within Aiotv both bts.
And yet says.
The enterprise solution offers solutions.
Reported sequential growth in billings and revenue.
In 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.
Moving to generally embedded mark good we're experiencing good demand in the industrial verticals as noted last quarter Grove into generally general embedded market has been a stated strategic objective and priority for us. It this quarter. This fiscal year, sorry, this fiscal year.
There were several very positive development in the quarter to align with Blackberry QNX strategic goal of 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 your 20 controls software has selected Blackberry QNX with two design wins one is in the eight hours.
Design, which has advanced driver assist and and as well as stay autonomous driving platform does this meaningful because tier one relationship as a meaningful tier one relationship that provides blackberry QNX and opportunity to work directly with Hyundai.
And they happen to be the sixth largest auto OEM in the world and East affiliate 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 or we are also winning with emerging small items and I think.
Thank you yes.
This is a.
With this sneak this work in here.
<unk> up like smart start up anyway as <unk> as an example arrival and electric commercial OEM base in the UK have chosen Blackberry QNX as the safe and secure a foundation again 48 hours features in us in the self driving vehicles in the quarter. We also.
Entered into a partnership with E Todd.
Eight to develop a safety critical platform using auto saw adaptive standard.
Bosch, the world's largest automotive supplier and the and apparent of de Tos 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, who were very pleased with that obviously and we had repeated purchases well in a number of our customers, including lows effects of and bimbos bakeries. We also starting to explore expansion into Europe and middle use arena.
Now lets you comment on our enterprise software and services business progress.
It would seem just getting back into farm and operating with better discipline and accountability. The team as we started a normal cadence in managing the pipeline and converting the pipeline to billings as a result, our pipeline increased nicely in both numbers of opportunity and dollar size since dollar size since the second fiscal quarter.
Revenue for you, Yeah AD hoc and cecchi spot all grew sequentially.
These included a contribution for the new continuous authentication Prato Blackberry intelligent surfaces, we name, but the I guess.
He is is gaining traction in the market as evidenced by high profile Windset such as the department on actual deep defense in Canada, and Junior Julius Baer Group Julius Baer go because one of the odors and largest banking institution in Switzerland.
And and as a reminder, we only releases product in August .
Next on the customer front, our regular regulated industry business remain healthy and stable. We added a number of new logo wins in the competitive situation of caused federal government agency worldwide, including in Canada, Germany, Panama, Poland, Romania, Saudi Arabia, as well 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 in financial services and energy verticals wins like bank of China. This whole bank, great Easton life insurance, where are you seeing like to assure that just happened to be the largest life insurance company in Singapore and Malaysia. We also won Scottishpower on Goldie seen on leaving is just a few.
All 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 fact, very sexy suite to secure voice and tax secure attacks technology.
The initial target market will be more than $4 million, United States government issue cellphones application meet the NSC stringent commercial solution for classified program requirements and you see only solution others kind in the fat Ram certification.
Lastly on the product fun, we introduce silence protect for mobile endpoints this mobile threat defense.
Which now refer to from now on as MTD.
On a product. This this MTD product integration AI endpoint security capabilities.
I'm, sorry, dance and so as far as the endpoint management functionality from you. Yeah. This second a second generation NTD product, which we deliver only eight months after the close of the acquisition and demonstrate a collaborative team work of the two development teams. The teams worked very well together to execute a common product.
Roadmap and share the same vision.
We have a total of 14 wonderful 14 beta customer, which includes CFO , Tom multinational financial engines institution and notable telecommunication companies.
They all have share very positive feedback in fact, we receive our first customer order during the quarter.
[laughter] Susan.
Spark.
Secure aiotv platform is progressing well with the addition of this two product the MTD product I, just mentioned and the VI as product I mentioned earlier.
Moving onto our licensing business revenue increased double digit percentage year over year growth, which is 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 ones Curry.
Hey, our was hundred 71 million up 15%, one five year over year I.
I would dollar base net retention rate was 99% and we ended the quarter were 20% year over year growth in active subscription customers.
We anticipate stronger growth in the future as we have now release and enhance endpoint detection and response that you deal.
Technology product as well as a single agent pop on the lack of these features in the past have prevented us from winning more deals as well a larger sized deals I'll close until now.
By adding back very resources were able to deliver both products at the end of the third quarter Ricciardi optics 2.4, we should the deal product that I mentioned earlier shipped in October this year, followed by the release of our single agent Python, our internal Codenamed called concluded last month.
These new products improved capacity to address our customers cyber security needs across the entire spectrum.
[noise] signage endpoint security is best known voice AI, driven prediction and production. Our team has won a number of new deals in competitive environment, which are with the enterprise customers I named us the our name a few such FCM Bank group in Malaysia, The international container terminal surfaces in.
Philippines, The EPS Corporation, the Lloyd and molex into United States.
In the quarter. We also released on managed service offering side ends guard.
Market demand and pipeline has been strong, especially in the SMB, a small medium business sector.
The company offering all these products and services will no doubt helped drive stronger revenue growth next year.
Before I turn the call over to Steve They make a couple of comments regarding the silence integration.
We continue to be ahead in the joint integration efforts, we're achieving a product developments in the synergies, we discuss where we have announced the acquisition, including the MTD product, which I discussed earlier that uses to it as well that case that integrated QNX and silence technologies together both of which.
Page.
We'll be demonstrated at CES in three weeks.
Both customer industry analysts at towards our product meets the needs of a large addressable market of both fixed and mobile endpoint, where 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 guidance will be accretive in fiscal 2021.
With that let me turn the call with the steep ray 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 GAAP 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 of 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 and a 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.
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.
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 comprised of service access fees.
Service 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.
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 the current consensus estimate for the total company, which is approximately 1.1 billion in 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 occur in forecast any case more like eight cents earnings per share in fiscal 2020.
On a longer term basis, we're executing upon our strategy of being the trusted provider of secure communication for endpoints.
Customers and industry analysts agree that the endpoint management the securities markets are converging and customer demand better solution to combat increasing security threat to a spending set of diverse endpoints. All of these effort this year, including the acquisition and the integration of sidearms onto position Blackberry.
As a leader in this emerging market.
Blackberry has the access to solve the industry problems and we already delivering relevant products such as a zero trust smartphone and AI for security.
As far as well and many other different praful products.
We believe there we could be a winner in this fast growing 20 billion post market.
We look forward to discussing more of our plan and our financial or the F. by 21 financial outlook and I'll next analyst day, which happened to be April 20 foot in San Ramon.
I will now open the call acuity.
Jack.
Certainly we will now begin me question and answer session to ask a question you May press star one on your telephone keypad, if you're using a speakerphone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment.
Again press Star one and task a question, we'll pause for just a moment to allow an opportunity to signal for questions.
[noise], Steven Fox with Cross Research your line is open.
Hey, Steven.
Hi, Good morning, everyone I'm dimly couple of questions. If I could Ah first of all John you mentioned that the way you Meetme revenues rose quarter over quarter, but I do I didn't quite get the details behind that in the quarter can you maybe just provide some color as to.
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.
Just happened to if you think about it a quarter ago, Oh, we have signal 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 we were fortunate to close a number of business that we're expecting its really general you yeah as role as CEO . The customer guided you know the impressed with the products and the and the road map and security, especially the Blackberry intelligent security solutions, which.
Very.
Quite quite.
By slick [laughter] I'd say so myself.
And so so the combination of really a better focus.
As well as the day ability to deliver.
The road map, especially you know above industry category or caliber of security help us drive more business and yes, we expect to see.
A continual via continued strengthening of that in Q4.
In in humans in particular.
Yeah, Yeah, Yeah, and again, all three business has done well I mean, all three components of that of the enterprise software business. We should cecchi small then and AD hoc 60 smarter more government base, we have a number of pilots going we've got the very.
Committed partners in khaki, which just happened to be one of the lodgers system integrators in the United State Federal governments as.
As well as.
As well as a.
And the AD hoc space the AD hoc space, we see a lot opportunities obviously not only in the federal capacity federal space, that's well, it's a stay in education sector.
Great. That's very helpful. And then just as a quick follow up you mentioned momentum now building with QNX on a non auto side and 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 than auto.
So so the design win could go into production a loss sooner and go for development cycle, and then deliver into production loss sooner.
Because if you if you will notice the auto business is you have to win the design wins would deal with a tier one and the OEM and then and then and then they would any incorporated into the design of the car and in the clock comes out in a in a year or two later so there you say a period in there of at least two to three years that you see.
We are low in the in the revenue and then it goes and then it goes up but they ship it.
In a gym market the cycle to the due to market. It's a lot faster than the auto are those sectors.
[laughter] okay.
All right. Thank you very much Joe 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 QNX progress in the outside the auto vertical Keith can you just talk a little bit about the peas in that vertical versus the auto and <unk> I know that in auto like there's several QNX modules that go into a or or potentially several models that go into car, but if you look at.
The non auto can you compare the ASP is there and I.
I guess could you just kind of highlight what industries, you're having success in.
Yeah.
Quarter, a quarter ago, where we're having success and the energy sectors.
And.
I would say I didnt really focus I didn't really focus on the and the ARPU Oh, the ASV, but you know kind of an educated.
Cash on my part the numbers are probably a little lower on the you know on the ARPU basis. However, the volume was gonna be a lot higher.
So I would I would think overall revenue.
Oh on a on a constant runway basis basis will probably be higher than the other sectors.
I'll Byway I forgot also the medical the medical sector.
And over what timeline anything John you'd see that.
The non auto would to eclipse auto revenue as I said earlier to see but I you know the timeline for defaulting Jim is going to be faster gestation period is gonna be faster on the revenue is going to be faster than that and the auto side.
Great. Thank you very much Joel.
[noise], Daniel Bardas with buffer Securities Your line is.
Hi, Dan.
Hey, guys, yes, thanks for taking my questions.
First I just wanted to start silencer, it's great to hear about the new EDI our update.
But can you give us a sense of how much of the customer base already buys ear and obviously just curious to know how significant of an up sell 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 all focused on E.D.R.. There has always been even prior to Blackberry and volkmann, that's always been debt that that tug of war in the market is CPP, which is protection more important than remediation.
Ditech and remediation so.
And as you know this is there's it's 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 at rest. We don't we just we will provide whatever the customer would want.
We have the best CPP technology that market acknowledged.
And now we have a very strong E.D.R. as well as single install cdis. The other thing about the single agent was also a a factor that customers you know final tedious do do multiple install so we could we could not do one and then we also added managed services so very strong line up.
And and so we serve all spectrum of the market the very large which have literally thousands of people like banks, a human familiar with and and then you had the you know very small SMB market wish you know volume wise is quite high.
But they you know these 1000.
Thousand users 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 GPP. We are the about the best areas in industry.
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 use that as 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.
Oh, and and then you know the total number bounces around about 250 million.
But and so.
You know, there's a lot of opportunity to do you do licensing business. So I'm, just a little bit of a hard to predict and quarterly <unk>. It's not like a sales 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 in 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, yes, okay. Thanks.
[noise], Paul steep with Scotia capital Your line is open.
Good morning.
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 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.
Bay, and our customer contact the customer want to have a more orderly platform to integrate many part of their enterprise software, especially into security space and this our anything from the endpoint management the application management.
And just the management of travel a this.
Accessibility to through the cloud or into the you know on premise and so for your they have so many solution. It's just not funny and so we have a very strong.
Platform in spark.
That we will deliver the it.
Zero Trust platform technology, Witching involved and combine everything I, just named you know, including identity management and so.
We're working extremely hard side and so it's a very important part of the puzzles. We now habit, 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.
So let's fix also so we were very excited about these things and we would do much more discussion at our analyst day or would you are and but.
This is a great opportunity for us and we believe we're not only at the leadership.
And the DNA for Ed and the technology for it you know where early than anybody else.
So anyway I'll leave it at a stab without getting too excited about telling you the product name.
Got that helps so maybe just as a final one to fall one the teaser there [noise] <unk> as I recall, you didn't 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].
Uh huh.
Why don't I wait to tell you that I.
I don't think acquisition is my.
Bush choice.
Partnership was probably.
More relevant.
Hi, makes Oh, Oh wait to hear more in the new year. Thanks, Okay. Thank you happy new year.
[laughter] trip Chowdhry with global Equities Research. Your line is open I true of how you [laughter] Hyundai well again, congratulations on a phenomenal execution.
Oh no question I would like to ask is a.
Let me think about security and especially the new paradigm in weight silence and like Buddy on these days, then machine learning and and ER and using that as a way to proactively Oh the.
Or the security place before it really happens I was wondering what do you think is that even that traditional security have you read like all they say blend micro semantic they haven't been able to prevent them still stood the new work what is your sense what is happening industry that through and then from doing something like what.
You guys aren't doing.
Well.
It's a true that's a that's a good question then you know I I never underestimate our competitors in the market.
Hmm all those are good company that you talk about that had built on.
The the security paradigm, where there is remote IDR 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 you know road map and things that they're they're working on Blackberry to happen just from one to.
Leap frog everybody by acquiring silence.
And so we go to the second generation first without even 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 policing and the trapping and and the correction of Ah.
Potential attack and threats. So I will only speak the fact that I'm preset blackberries able to execute it.
We had the capacity of the you know the dollars you know you know we paid 1.4 billion.
It was a big you know me well I mean, that's a that's a big commitment on our part and it works out a we got great product Oh with 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. It would be it will be a very strong player in the Aiotv security will.
Unifill actually 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 to eight months.
Yeah, He Microsoft and that's where you just you know we deliver a bridge product, which put all that Microsoft application I'm on our platform in the <unk> native in the native mobile so I'm in a way, we're competing with Microsoft because they obviously you also deliver into and I was saying goodbye.
Right, but then we have better security at least we think so and so and the customer.
Doesn't have to choose to move away from security to use a Microsoft application then 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.
You know for sure the full and Steve compelling has become the chief revenue officer. So it seems like the he hits a home run right Oh, Oh, Yeah, [laughter] yeah. He's he's the one who is a hitting the ball.
Yes, I was just I'm just wondering like ER, Yeah, then or John you want to say they send a steep <unk> billion devoted team did extremely well with the U.S. Federal government I was wondering a I'll be building a pipeline with the U.S. federal government mid sideline sounds like Buddy products and hold its coming along.
Oh, sorry, I didn't get the.
The like in the U.S Federal government the yeah.
Well, that's coming along like Gabi building, I'm, Oh pipeline with the U.S. federal agencies regarding the product.
We.
Yeah trip, we are very strong in federal.
So just for say for example in only add hall as a product which is the crisis management in emergency management alert systems. You know, we have a multi millions of licenses in the United State government or with the federal space. So.
Were very strong in and we're continuing to expand that pipeline. So and you know I spoke a little early about khaki, that's actually a very strong economy ship, because they're taking us into you know they it to 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 now product meets see hi extended.
Autopsy grid or 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 Hunter mentality and just you know do you consider that comes.
We are there still kind of some transitions under way just kind of on the sales force mentality, particularly around some of them more legacy products like Uh-huh. Yeah. Thanks, we have Oh, we establish a framework took us a couple of quarters. There was some there were some.
There are a little bit of Ah you know glitch on our part when we make some changes.
So those changes are behind us.
Oh, so we have a good platform now all now we're doing is to concentrate on not only executing turning to pipeline to billings upgrading that momentum, but also hiring more of the salespeople that fit into that model and so that's that's a metrics that 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 kept getting adding few to the fire is maybe that's 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 and.
This time, we have other demonstrated automobile and I I rumor has said, we'll have a motorcycle there too and we're going to show what we're going to show you I see US is obviously to continue the continuation of Vas advancement of out 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, I've been very happy and save holidays.
This concludes today's call. Thank you for your participation you may now disconnect.