Excerpt from Earnings Call transcript:
Management quotes "Three of our four regions grew sequentially in the first quarter, Europe, Middle East and Africa our largest regions, represented 43% of revenue in Q1 and was up 9%. North America represented 25% of revenue and was up 30%, Asia Pacific represented 17% of revenue and grew 35% and Latin America represented 15% of our revenue but was down 6% due to service revenues in Venezuela which I will explain further in a moment.
We shift 6.8 million smartphones in the first quarter compared to 6 million in the fourth quarter which represented a 13% increase.
Approximately 40% of these devices were BlackBerry 10 devices.
Estimated sell through in the quarter was approximately 6.8 million units. As expected our channel inventory reflected declines in BlackBerry 7 products while BlackBerry 10 channel inventories saw increases on the back of continuing launches of Z10, Q10 and early volumes of Q5.
Looking at our revenue mix, hardware revenue grew by 33% when compared to the fourth quarter and was approximately $2.2 billion. This represented 71% of revenue compared to approximately 61% of revenue in the fourth quarter. Service revenue was approximately $794 million or 26% of revenue and was down $153 million or 16% from from the fourth quarter. This decline reflects three factors, the 72 million decline in service revenues earned from Venezuelan carriers which could not be recognized by U.S.
GAAP due to foreign currency restrictions in a region and the challenges for carriers to a mid U.S dollars to BlackBerry for payment. Mix shift to low tiered service plans in our customer base and a lower number of subscribers this quarter. This is a currency control in Venezuela, no cash was received in the quarter relating to service revenue which did not allow us to meet the necessary revenue recognition criteria under U.S. GAAP. "
Full Transcript here
Management quotes "Three of our four regions grew sequentially in the first quarter, Europe, Middle East and Africa our largest regions, represented 43% of revenue in Q1 and was up 9%. North America represented 25% of revenue and was up 30%, Asia Pacific represented 17% of revenue and grew 35% and Latin America represented 15% of our revenue but was down 6% due to service revenues in Venezuela which I will explain further in a moment.
We shift 6.8 million smartphones in the first quarter compared to 6 million in the fourth quarter which represented a 13% increase.
Approximately 40% of these devices were BlackBerry 10 devices.
Estimated sell through in the quarter was approximately 6.8 million units. As expected our channel inventory reflected declines in BlackBerry 7 products while BlackBerry 10 channel inventories saw increases on the back of continuing launches of Z10, Q10 and early volumes of Q5.
Looking at our revenue mix, hardware revenue grew by 33% when compared to the fourth quarter and was approximately $2.2 billion. This represented 71% of revenue compared to approximately 61% of revenue in the fourth quarter. Service revenue was approximately $794 million or 26% of revenue and was down $153 million or 16% from from the fourth quarter. This decline reflects three factors, the 72 million decline in service revenues earned from Venezuelan carriers which could not be recognized by U.S.
GAAP due to foreign currency restrictions in a region and the challenges for carriers to a mid U.S dollars to BlackBerry for payment. Mix shift to low tiered service plans in our customer base and a lower number of subscribers this quarter. This is a currency control in Venezuela, no cash was received in the quarter relating to service revenue which did not allow us to meet the necessary revenue recognition criteria under U.S. GAAP. "
Full Transcript here
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