RBC Dominion Securities Inc. Paul Treiber, CFA (Analyst) (416) 842-7811 [email protected]
Sector: Telecom & Networking Equipment
January 12, 2018 Sector Perform BlackBerry Limited NYSE: BB; USD 13.45; TSX: BB CES helps clarify BlackBerry’s automotive position Price Target USD 11.00 WHAT'S INSIDE Our view: We attended CES this past week, where we met with BlackBerry’s management and numerous other companies in the Rating/Risk Change Price Target Change automotive software ecosystem. This note is an in-depth review of In-Depth Report Est. Change the embedded software ecosystem that we saw at CES. While we Preview News Analysis EQUITY RESEARCH EQUITY believe BlackBerry appears well positioned to benefit from automotive, Scenario Analysis* automotive is a relatively small portion of BlackBerry and the opportunity appears priced into the shares. Downside Price Current Upside Scenario Target Price Scenario
Key points: 8.00 11.00 13.45 14.00 • QNX’s automotive opportunity. We estimate that QNX automotive 41% 18% 4%
generates $99MM revenue FY18E, which represents 13% of total *Implied Total Returns software revenue. Management reiterated its target to increase QNX Key Statistics automotive revenue by 3–5x from $2–3 per vehicle currently over the Shares O/S (MM): 532.5 Market Cap (MM): 7,162 next 3–5 years. Growth may be back-end loaded; our outlook calls for Dividend: 0.00 Yield: 0.0% Avg. Daily Volume: 7,311,632 BTS/QNX revenue to grow 24.5% FY19E. • Losing infotainment, capturing other segments. Based on our RBC Estimates discussions at CES, BlackBerry’s QNX appears to be losing share in FY Feb 2017A 2018E 2019E 2020E infotainment to AGL (Automotive Grade Linux) and Android. Despite Revenue 1,374.0 944.8 888.8 964.9 the loss of infotainment, BlackBerry aims to increase the number of EPS, Ops Diluted 0.05 0.10 0.05 0.15 licenses per vehicle as auto OEMs deploy telematics, digital instrument P/E NM NM NM NM clusters, hypervisor, acoustics, and ADAS/autonomous. For example, Revenue Q1 Q2 Q3 Q4 Denso’s HMI platform involves two QNX licenses (hypervisor, cluster), 2017 424.0A 352.0A 301.0A 297.0A 2018 244.0A 249.0A 235.0A 216.8E while giving up infotainment to AGL. 2019 213.8E 215.4E 227.5E 232.0E • Competition is everywhere. AGL, Linux, and other embedded EPS, Ops Diluted software vendors are all potential competitors in emerging segments. 2017 0.00A 0.00A 0.02A 0.04A QNX’s safety certifications and real-time architecture are competitive 2018 0.02A 0.05A 0.03A 0.00E 2019 0.00E 0.00E 0.02E 0.03E advantages, which have fueled recent design wins (e.g., Denso’s All values in USD unless otherwise noted. HMI platform); however, alternatives to QNX exist (e.g., Panasonic showcased a HMI platform based on AGL, Linux, and OpenSynergy’s hypervisor). Longer-term, there is risk from Linux’s and AGL’s potential move into safety and real-time. • The OS is a small proportion of total autonomous economics. Developers acknowledged to us the merits of real-time operating systems like QNX. QNX’s recent announcements as the “foundation” in several autonomous platforms (e.g., NVIDIA Drive) show the company’s traction. However, we believe the OS represents a relatively low proportion of the total economics of an autonomous platform. • Valuation rich, visibility low. On a sum of the parts basis, BB share price values BTS/QNX automotive at 16x FTM EV/S, assuming BlackBerry’s Enterprise Software/IP/Licensing/Other is valued at 3.5x sales. Sensitivity analysis of our DCF suggests that QNX automotive revenue must match the high end of management’s 3–5x outlook in five years. While we believe BlackBerry will be a player in next-generation automotive software, this appears to be priced into the stock. • Maintaining Sector Perform, $11.00 price target. Our $11.00 target (unchanged) equates to 4.1x CY19E EV/S on "company total" software revenue, which compares to enterprise security software peers at 3.5x.
Disseminated: Jan 12, 2018 02:08ET; Produced: Jan 12, 2018 02:08ET Priced as of prior trading day's market close, EST (unless otherwise noted). For Required Non-U.S. Analyst and Conflicts Disclosures, see page 16. Telecom & Networking Equipment BlackBerry Limited
Target/Upside/Downside Scenarios Investment summary Exhibit 1: BlackBerry Limited Our Sector Perform thesis is based on: 1) core software revenue growth appears slower than generally expected; 2) 125 Weeks 22AUG15 - 11JAN18 emerging software opportunities are difficult to value; and 3) 14.5 UPSIDE 14.00 CURRENT 12.5 13.45 design win momentum appears already priced into the stock. 11.5 TARGET 11.00 10.5 9.5 • Core software revenue growth appears slower than 8.5 DOWNSIDE 8.00 generally expected. Excluding $100MM IP licensing 7.50 revenue, BlackBerry’s guidance for 10–15% software growth 6.50 implies just 0–6% Y/Y growth in core software revenue.
5.50 Additionally, YTD enterprise software revenue rose just 1% 150m and BTS (QNX automotive) is up just 1% Y/Y. 100m 50m • Emerging software opportunities remain difficult to value. 2015 2016 2017 BlackBerry has secured a number of design wins in the A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J Jan 2019 BB US Rel. S&P 500 COMPOSITE MA 40 weeks automotive segment. While positive, we believe these are Source: Bloomberg and RBC Capital Markets estimates for Upside/Downside/Target difficult to value considering that penetration is unknown Target price/base case and pricing pressure has reduced ASPs in the automotive Our $11.00 price target equates to 4.1x CY19E EV/S on segment. Additionally, BlackBerry Radar appears compelling "company total" software revenue, which compares to but early-stage, particularly in light of competitors that enterprise security software peers at 3.5x. The premium, in have established distribution channels and sales to end our view, is justified given stronger FTM software growth (13% customers. vs. peers at 4%). • Design win momentum appears already priced into the stock. Over the last year, BlackBerry’s valuation Upside scenario has increased from 2.8x FTM EV/S to 6.0x currently, For our upside scenario of $14.00, we assume faster above enterprise security software peers at 3.5x (EMM organic growth of BlackBerry's software business (including comparable MobileIron at 1.7x). Design win momentum is enterprise, QNX, IoT, and IP licensing). In this more optimistic positive, though visibility to revenue is limited and appears scenario, we assume 15% “company total” software & services to be priced into the stock. We believe core software revenue growth FY19E, at the higher end of BlackBerry’s revenue growth needs to accelerate or visibility needs outlook for 10–15%. Our $14.00 scenario values BlackBerry’s to improve to in order to justify further upside for the software business at 5.3x on $1.01B CY19E “company total” stock. Growth skewed toward enterprise software, QNX/ software sales. automotive, and Radar/IoT would be accretive to valuation; higher contribution from professional services, handset Downside scenario licensing, and IP licensing would be dilutive, in our view. For our downside scenario of $8.00, we assume a slower rate of growth of enterprise software. In this more pessimistic scenario, we assume 9% “company total” software & services revenue growth FY18E, below BlackBerry’s outlook for 10–15%. Our $8.00 scenario values BlackBerry’s software business at 2.5x on $907MM CY19E “company total” software sales.
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 2 Telecom & Networking Equipment BlackBerry Limited
CES helps clarify BlackBerry’s automotive position We attended CES this past week, where we met with BlackBerry’s management and numerous other companies in the automotive software ecosystem. This note is an in-depth review of the embedded software ecosystem that we saw at CES. While we believe BlackBerry appears well positioned to benefit from automotive, automotive is a relatively small portion of BlackBerry and the opportunity appears priced into the shares. QNX’s automotive opportunity We estimate that QNX automotive generates $99MM revenue FY18E, which represents 13% of total software revenue and 62% of total BTS revenue ($160MM, includes non-automotive QNX, Radar, Paratek/Certicom). Management reiterated its target to increase QNX automotive revenue by 3–5x from $2–3 per vehicle currently to $9–15 over the next 3–5 years, which implies 25–71% CAGR. Growth may be back-end loaded; our outlook calls for BTS/QNX revenue to grow 24.5% Y/Y from $160MM FY18E to $199MM FY19E. In comparison, we forecast Enterprise Software & Services revenue to rise 7% FY19E and Licensing, IP, and Other to increase 6% FY19E.
Exhibit 2: RBC’s outlook calls for BTS/QNX revenue to grow 24.5% FY19E
Source: RBC Capital Markets estimates, Company reports Losing infotainment, capturing other segments Based on our discussions at CES, BlackBerry’s QNX appears to be losing share in infotainment to AGL (Automotive Grade Linux) and Android. Despite the loss of infotainment, BlackBerry aims to increase the number of licenses per vehicle as auto OEMs deploy QNX for telematics, digital instrument clusters, hypervisor, acoustics, and ADAS/autonomous. Our view reflects our discussions with tier one suppliers, chipset suppliers, and representatives from AGL and members of the GENIVI Alliance. Some of our more insightful discussions include:
DENSO/Toyota. DENSO is a tier one supplier, with Toyota accounting for one-half of the company’s revenue. We saw a demonstration of DENSO’s HMI integrated automotive platform. The solution uses QNX for the hypervisor, along with QNX for the instrument cluster. This implies two QNX licenses per platform, which is obviously double the licenses per vehicle compared to a standalone infotainment system (which would have only a single license). The infotainment system in the DENSO HMI demonstration that
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 3 Telecom & Networking Equipment BlackBerry Limited
we saw is running on AGL. This is logical considering that Toyota is using AGL for the infotainment system in the 2018 Camry and AGL announced on January 10 that Toyota plans to roll out AGL to “multiple vehicle models.”
Exhibit 3: DENSO’s HMI platform uses QNX for the hypervisor and cluster, AGL for infotainment
Source: RBC Capital Markets, DENSO
Bosch. Bosch is a tier one supplier of hardware and software for infotainment and digital instrument clusters to vehicles. At its booth at CES, the company had a production BRP Can-Am Spyder, which includes a digital instrument cluster with the company’s mySPIN smartphone integration. According to our discussions with Bosch, the digital instrument cluster in the Spyder is based on Linux and does not include a hypervisor. Additionally, Bosch indicated that a similar Linux-based system has been used as the infotainment
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 4 Telecom & Networking Equipment BlackBerry Limited
system in Jaguar Land Rover vehicles since 2014. According to disclosures on the GENIVI website, Bosch ships more than 3MM GENIVI/Linux based devices per year. Bosch does not provide the instrument clusters for Jaguar Land Rover vehicles; Visteon appears to be the supplier of the instrument cluster for Jaguar Land Rover, based on a display at the company’s booth. We weren’t able to confirm the software supplier for the instrument cluster, which could be QNX or another embedded OS.
Exhibit 4: BRP’s Can-Am Spyder digital instrument cluster is based on Linux
Source: RBC Capital Markets, Bosch
NXP. NXP has a demonstration of its i.MX 8M application processor at its booth at CES. NXP’s auto cockpit demonstration uses a hardware-based hypervisor to allow two operating systems, including “non-safe” OS for infotainment and a “safe” OS like Green Hills or QNX for digital instrument cluster and heads-up display. In the demonstration, NXP is showing Linux running on the i-MX MQ8 auto cockpit. NXP also has a team building AGL software solutions. NXP is focused on selling its chipset solutions and appears largely agnostic regarding software, although the company’s development of Linux and AGL based infotainment software shows the increasing industry support for these platforms for infotainment. Qualcomm. Qualcomm has several proof-of-concept vehicles at CES. One demo vehicle showcases several screens based on AGL, including the digital instrument cluster and the infotainment system, running on a single Qualcomm Snapdragon processor. Qualcomm has also other proof-of-concept vehicles running QNX, Green Hills, and Android. While not in production, the demos show that Qualcomm is willing to support other embedded operating systems, in addition to QNX. Linux, including AGL and GENIVI Alliance. We had discussions with representatives from AGL (including Dan Cauchy, Executive Director of AGL) and we attended a reception
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 5 Telecom & Networking Equipment BlackBerry Limited
hosted by members from the GENIVI Alliance (open source Linux-based platform for in- vehicle infotainment systems). We believe that these discussions are biased toward Linux over alternatives, but we believe it is important to have an understanding of their perspective. AGL representatives believe that Linux and Android will ultimately dominate in-vehicle infotainment due to widespread developer and application support. Additionally, they believe that AGL would become an industry standard, which would reduce fragmentation and accelerate time-to-market but still allow automakers to differentiate their offerings. Disclosed case studies on the GENIVI website validate the comments from Bosch (see above) and also describe BMW’s introduction of GENIVI/Linux-based head units in 2013 and characterize that BMW is “strongly committed” to GENIVI for future infotainment programs. Moreover, Mercedes-Benz announced at CES that its next-gen infotainment system called MBUX is Linux-based.
Cybersecurity for automotive In July 2015, two security researchers hacked into a Jeep through the car’s cellular- connected infotainment system. As a result, they were able to remotely control the vehicle’s brakes, engine, and other systems. The hack was a wake-up call for the industry and has sparked significant investments in cybersecurity solutions for automotive.
The increasing connectivity of vehicles is driving the need for new cybersecurity solutions. Connectivity includes both built-in cellular connections, along with after-market OBD2 dongles for telematics, tracking, and insurance. Vehicles are complex, with up to 120MM lines of code, more than the Boeing 787 (7MM lines of code), as a result of the 100+ ECUs (electronic control units) in vehicles. Moreover, the CAN bus network in vehicles is inherently insecure, allowing any ECU to communicate with any other ones.
At CES, we had discussions with Karamba Security and Argus Cyber Security (acquired by Continental for $430MM in November 2017, according to Globes).
Karamba Security. Karamba, founded in 2015, touts 16 design wins for its automotive cybersecurity solutions. The company’s philosophy is that traditional enterprise cybersecurity strategies (heuristic) are ill-suited for automotive due to: 1) false positives have safety implications; and 2) OTA patches take time. Instead, Karamba uses a deterministic strategy to harden ECUs to prevent attacks against safety critical systems without requiring OTA updates. Additionally, Karamba offers a solution to ensure the safety of communications within systems in the vehicle, preventing hackers from sending malicious commands to ECUs. Argus Cyber Security. Argus, founded in 2013, has 38 granted and pending patents for its cybersecurity solutions. The company has a multi-layered strategy to protect vehicles, including both proactive and reactive. Argus Connectivity Protection defends connected infotainment and telematics units by preventing malware installation, detecting OS anomalies, isolating suspicious applications, and stopping attacks from spreading to the in-vehicle network. Additionally, Argus provides ECU Protection, which is deployed on the ECU to detect and prevent incoming attacks. Argus In-vehicle Protection prevents attacks in the vehicle communication network.
We had little industry feedback on BlackBerry’s possible security and OTA offerings given that BlackBerry has made limited public disclosures on these offerings. BlackBerry is expected to announce more details of its cyber security offerings for automotive on Monday, January 15, at the North American International Auto Show. IHS expects the automotive cybersecurity market to reach $759MM in revenue by 2023.
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 6 Telecom & Networking Equipment BlackBerry Limited
Competition is everywhere AGL, Linux, and other embedded software vendors are all potential competitors in emerging segments. QNX’s safety certifications and real-time architecture are competitive advantages, which have fueled recent design wins (e.g., Denso’s HMI platform); however, alternatives to QNX exist (e.g., Panasonic showcased a HMI platform based on AGL, Linux, and OpenSynergy’s hypervisor). Longer-term, there’s the risk from Linux’s and AGL’s potential move into safety and real-time, which may increase competition against BlackBerry in emerging segments over time. Our conclusions stem from discussions with:
Linux, including AGL and GENIVI Alliance. Dan Cauchy, Executive Director of AGL and General Manager of Automotive at Linux Foundation, provided us with an overview of AGL’s and Linux’s roadmap to move into real-time and functional safety. A real-time version of Linux is currently available, but it is not reflected in the core Linux Kernel, which leads to a disjointed development environment. According to Mr. Cauchy, the core Linux Kernel will incorporate real-time as an option starting in Q3 of 2018. Additionally, he indicated that AGL will pursue ISO 26262 safety critical certification for automotive within the next 18–24 months. The possible outcome of these two developments is that AGL and Linux may gain more traction in safety critical deployments in automotive, such as instrument cluster and ADAS/autonomous. Another representative from AGL acknowledged to us that while these certifications are possible, the design cycle in automotive is long and it make take 5–10 years for Linux and AGL to gain traction in these segments. Green Hills Software. Green Hills Software was founded in 1982. The company claims that it is the largest independent embedded software provider. Green Hills believes that its INTEGRITY real-time operating system is the “gold standard” for safety/security- critical software considering the company’s history in avionics (including DO-178B certification) and its EAL 6+ industry certification (exceeding EAL 4+ certification, which QNX, Windows, and Linux have achieved). For automotive, Green Hills introduced its first safety certified (ISO 26262 ASIL D) platform in 2012 (which according to the company was ahead of QNX) for digital instrument clusters and a hypervisor to GENIVI, Android, and other operating systems in infotainment. Green Hills indicated to us that it has numerous design wins in automotive instrument clusters, ADAS, and autonomous vehicles, but it does not press release many of its wins. Panasonic. At CES, Panasonic announced that its Skip Generation infotainment system has been upgraded to the latest version of Android (Android 8.1 Oreo), up from Android 7.0 when introduced at CES last year. Additionally, we saw a demonstration of Panasonic multi-display HMI platform, which appears to offer functionality similar to DENSO’s HMI platform but utilizes a hypervisor from OpenSynergy and Linux for the instrument cluster, in addition to AGL for the infotainment system.
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 7 Telecom & Networking Equipment BlackBerry Limited
Exhibit 5: Panasonic’s HMI platform is based on Linux, AGL, and OpenSynergy’s hypervisor
Source: RBC Capital Markets, Panasonic
Others. Numerous tier one suppliers, software vendors, and systems integrators had demonstrations of software platforms for various aspects of automotive, such as OTA updates and AGL or Linux based HMI platforms with instrument cluster and infotainment. Several chipset vendors are offering hardware-based hypervisors (NVIDIA told us its hardware hypervisor is only a few thousands lines of code). Generically, there are 100 software-based hypervisors available, including free ones like Jailhouse (from Siemens) and many real-time operating systems.
The OS is a small proportion of total autonomous economics The majority of autonomous platforms appear to be built on Linux and Windows given developer support. In many cases, prototypes run on desktop or server-grade hardware, and the platform is integrated directly into the CAN bus network to control the vehicle. Developers acknowledged to us the merits of real-time operating systems like QNX for the deployment of autonomous in production vehicles given safety certifications (e.g., ISO 26262 ASIL D) and the ability to prioritize safety-critical tasks. In the transition from prototype to production, autonomous platforms may be ported from one operating system to another, depending on the requirements of the OEM. QNX’s recent announcements as the “foundation” in several autonomous platforms (e.g., NVIDIA Drive, Aptiv, Baidu Apollo) show the company’s traction in securing QNX as the OS layer in autonomous vehicles and platforms that are closer to production. However, QNX is not the only real-time embedded
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 8 Telecom & Networking Equipment BlackBerry Limited
OS that is available. Our notable discussions with autonomous vehicle component suppliers and developers include:
NVIDIA. Based on our discussions with NVIDIA at its CES booth, NVIDIA’s DRIVE Xavier and DRIVE Pegasus chipsets incorporate its own hardware-based hypervisor, which is capable of supporting several guest OS’s such as QNX, Linux, and others. NVIDIA’s DRIVE autonomous software stack is based on QNX (NVIDIA selected QNX over other embedded OS, according to the rep), though it also supports Linux because start-ups, universities, etc. typically develop in Linux. Intel. We had discussions with engineers at Intel’s CES booth regarding the BMW 7 series test vehicle that was deployed on roads this year to collect data. The vehicles feature 8 Mobileye cameras along with other sensors. The system is based on an Intel Xeon server processor and is running ROS (Robot Operating System), which is a framework that sits on top of an existing operating system like Linux. Renesas. At the Renesas autonomous vehicle demo at CES, we had discussions with several engineers. The core autonomous algorithms of the prototype vehicle are running in QNX. However, Renesas also works with Linux and Green Hills. Renesas is the largest chipset provider for the automotive market. The company is already selling the application processors that are used in its prototype autonomous vehicle, for discrete functions such as ADAS and vision. Aimotive. Founded in 2015, Aimotive is a start-up provider of AI powered self-driving technology. The company has 150 employees. Representatives at CES indicated that the company’s autonomous platform is based on real-time Linux and MS Windows. Baidu’s Apollo. We had a discussion with Baidu representatives regarding Apollo, the company’s open source autonomous vehicle platform. Apollo is based on a Linux kernel and the software is open source and freely available. The representatives with whom we spoke were not familiar with BlackBerry’s announcement that QNX would become the foundation for Apollo (possibly because it had been announced only one week before). Torc Robotics. Torc was founded in 2005 and has competed in several DARPA autonomous robotic challenges. Currently, the company offers several production autonomous vehicles for the military and remote control systems for Caterpillar. The company demonstrated its level 4 autonomous vehicle called Asimov at CES. In our discussions with Torc, representatives indicated that its platforms are based on multiple operating systems, depending on the deployment. Engineers highlighted that the prioritization capabilities of real-time operating systems like QNX are important in safety-critical environments such as production autonomous vehicles.
We believe the OS represents a relatively low proportion of the total economics of an autonomous platform, which suggests a smaller opportunity for BlackBerry than generally perceived (i.e., possibly just a single QNX license per autonomous vehicle). According to a report published by BCG in April 2015, partial autonomous functionality would cost $5,500 at launch (estimated in 2022), while full autonomy would cost $9,800 at launch (estimated in 2025). In comparison, the price of QNX license is approximately $2–3 per module. The economics for the OS may increase if the OS is deployed in other systems in the vehicle, such as separate ADAS platforms, telematics, etc.
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 9 Telecom & Networking Equipment BlackBerry Limited
Exhibit 6: BCG estimates partial autonomy would cost $5,500 at launch in 2022 and full autonomy would cost $9,800 in 2025
Source: BCG (https://www.bcgperspectives.com/content/articles/automotive-consumer-insight-revolution-drivers-seat-road-autonomous-vehicles/#chapter1)
Valuation rich, visibility low Current valuation implies BTS/QNX is trading at 16x FTM EV/S. On a sum of the parts basis, BlackBerry’s current share price values BTS/QNX at 16x FTM EV/S, assuming BlackBerry’s Enterprise Software/Licensing/Other is valued at 3.5x, as shown in Exhibit 7. BlackBerry’s target for 3–5x licenses per vehicle in the next 3–5 years implies 25–71% revenue CAGR. We believe it is fair to value enterprise software/licensing/other at 3.5x, which is in line with enterprise security software peers (at 3.5x) given that BlackBerry’s Enterprise Software accounts for the majority of this segment (55% of total software revenue). Our forecast calls for BlackBerry’s Enterprise Software/IP/Licensing/Other revenue to grow at 7% FTM, near peers at 4%.
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 10 Telecom & Networking Equipment BlackBerry Limited
Exhibit 7: Current share prices implies BTS/QNX is trading at 16x FTM EV/S
$MM, except per share values FTM Software Revenue (FTM): Enterprise Software & Services $441 BTS (QNX/Radar) $186 IP, Licensing, and Other $194 "Company Total" Software Revenue $821
FTM Enterprise Value EV/S Multiple EV Enterprise Software & Services 3.5x $1,545 BTS (QNX/Radar) 16.1x $2,991 IP, Licensing, and Other 3.5x $678
"Company Total" Software 6.3x $5,214
Enterprise Value $5,214 Plus: Total Cash (current) $2,553 Less: Convertible Debentures $605 Shares (current) 532.5
Implied share price $13.45
Source: RBC Capital Markets estimates
Current stock price implies QNX automotive reaches the high end of management’s outlook. Sensitivity analysis of our DCF suggests that the current stock price implies that QNX automotive revenue rises 5x over five years, which is toward the high end of management’s outlook to increase 3–5x over the next 3–5 years. We varied the assumptions in our DCF to determine the revenue growth of QNX automotive that is priced into the current share price. Assuming no changes to our existing outlook for BlackBerry Radar, Enterprise Software & Services, IP/Licensing/Other, and other BTS/QNX (e.g., Certicom, non-automotive QNX), the current share price implies that QNX automotive revenue grows at 45% CAGR to $587MM by FY22E and at 34% CAGR over the next 10 years, as shown in Exhibit 8. This outlook assumes that QNX’s ASP per vehicle increases from $2.50 in FY17 to $14.8 by FY22E and reaches $31.3 by FY27E and that QNX’s market share / penetration increases from 40% of vehicles in FY17 to 50% of vehicles by FY27E. Notably, the implied FY17E results exceeds management’s blue sky scenario of $25 per vehicle.
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 11 Telecom & Networking Equipment BlackBerry Limited
Exhibit 8: DCF sensitivity analysis – Current stock price implies QNX auto must achieve the high end of management’s outlook
BlackBerry Discounted Cash Flow Valuation US$000s, except per share figures 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E Compounding Period 1 2 3 4 5 6 7 8 9 10 Enterprise Software 409,000 417,630 448,894 475,828 506,757 539,696 572,077 606,402 642,786 681,353 722,235 Y/Y Growth 2.1% 7.5% 6.0% 6.5% 6.5% 6.0% 6.0% 6.0% 6.0% 6.0%
BTS: Global auto sales (000s) 92,100 93,482 94,884 96,307 97,752 99,218 100,706 102,217 103,750 105,306 106,886 BlackBerry Share / Penetration (%) 40% 37% 35% 32% 35% 40% 43% 45% 47% 48% 50% ASP (per vehicle) $2.5 $2.9 $3.4 $4.6 $9.2 $14.8 $21.4 $24.6 $27.1 $29.8 $31.3 QNX Automotive 92,100 99,441 113,617 142,340 312,878 586,568 928,028 1,133,623 1,307,880 1,507,353 1,666,704 Other QNX 7,900 7,569 8,182 8,484 8,908 9,354 9,821 10,312 10,828 11,369 11,938 IoT / Radar 1,000 3,040 27,436 46,298 79,822 111,115 141,370 173,308 206,944 238,846 270,870 Paratek / Certicom 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Total BTS 151,000 160,050 199,235 247,122 451,608 757,037 1,129,219 1,367,243 1,575,653 1,807,568 1,999,511 Y/Y Growth 6.0% 24.5% 24.0% 82.7% 67.6% 49.2% 21.1% 15.2% 14.7% 10.6%
IP, licensing & other 168,485 319,309 340,440 373,251 390,362 408,899 427,436 444,120 456,910 470,980 486,457 Y/Y Growth 89.5% 6.6% 9.6% 4.6% 4.7% 4.5% 3.9% 2.9% 3.1% 3.3%
"Company total" software & services 728,485 896,989 988,569 1,096,200 1,348,727 1,705,631 2,128,732 2,417,765 2,675,349 2,959,902 3,208,203 Y/Y Growth 23.1% 10.2% 10.9% 23.0% 26.5% 24.8% 13.6% 10.7% 10.6% 8.4%
Adj. EBITDA 182,000 149,259 118,789 169,396 364,156 562,858 776,987 955,017 1,137,023 1,317,156 1,458,128 Adj. EBITDA Margin 25.0% 16.6% 12.0% 15.5% 27.0% 33.0% 36.5% 39.5% 42.5% 44.5% 45.5% Amortization 129,000 88,000 88,000 88,000 108,272 136,923 170,889 194,092 214,770 237,613 257,546 EBIT 53,000 61,259 30,789 81,396 255,884 425,935 606,098 760,926 922,254 1,079,543 1,200,582 Operating Margin 7.3% 6.8% 3.1% 7.4% 19.0% 25.0% 28.5% 31.5% 34.5% 36.5% 37.4% Taxes (2,000) 5,000 - - - - 171,816 201,645 244,397 286,079 318,154 Tax Rate -4% 8% 0% 0% 0.0% 0.0% 28.3% 26.5% 26.5% 26.5% 26.5% EBIT (1-t) 55,000 56,259 30,789 81,396 255,884 425,935 434,283 559,280 677,856 793,464 882,428 Amortization 129,000 88,000 88,000 88,000 108,272 136,923 170,889 194,092 214,770 237,613 257,546 Growth Rate -32% 0% 0% 23% 26% 25% 14% 11% 11% 8% Capital Expenditures (69,000) (43,000) (40,000) (40,000) (47,205) (59,697) (74,506) (84,622) (93,637) (103,597) (112,287) Growth Rate -38% -7% 0% 18% 26% 25% 14% 11% 11% 8% Change in Working Capital (103,000) (105,049) 14,196 24,001 17,552 24,808 29,409 20,090 17,904 19,779 17,259 Growth Rate 2% -114% 69% -27% 41% 19% -32% -11% 10% -13% FCFF 12,000 (3,791) 92,985 153,397 334,503 527,969 560,075 688,840 816,893 947,259 1,044,946 Growth Rate -132% -2553% 65% 118% 58% 6% 23% 19% 16% 10%
Valuation Discounted Free Cash Flow to Equity - Sensitivity Analysis FCFF 5,213,156 Discount Rate Plus: Cash 2,553,000 13.45 10.5% 11.5% 12.5% 13.5% 14.5% Plus: Patents - 1.0% $ 15.57 $ 14.23 $ 13.18 $ 12.33 $ 11.65 Less: Market Value of Convertible Debentures 605,000 Terminal 1.5% $ 16.04 $ 14.59 $ 13.45 $ 12.55 $ 11.82 Equity Value 7,161,156 Growth 2.0% $ 16.57 $ 14.98 $ 13.74 $ 12.77 $ 12.00 Shares Outstanding (MM) 532,496 Rate 2.5% $ 17.16 $ 15.41 $ 14.07 $ 13.02 $ 12.19 Equity value/share 13.45 Source: RBC Capital Markets estimates
While we believe that BlackBerry will be a player in next-generation automotive software, the opportunity appears priced into the current stock price. Moreover, our analysis suggests that current valuation leaves little room should new opportunities take longer to emerge or BlackBerry’s ASP or share is lower than what is priced into the stock. Maintaining Sector Perform, $11.00 price target Our Sector Perform thesis is based on: 1) core software revenue growth appears slower than generally expected; 2) emerging software opportunities are difficult to value; and 3) design win momentum appears already priced into the stock.
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 12 Telecom & Networking Equipment BlackBerry Limited
M&A is a potential catalyst. BlackBerry has $2.6B total cash ($4.79/share). Management has indicated that it would allocate a portion of the Qualcomm award to share repurchases to offset the expected dilution from its outstanding $605MM convertible debentures. We believe BlackBerry can allocate up to $1.6B cash to potential acquisitions, assuming that it retains just $400MM cash. We believe acquisitions may be accretive to adj. EPS and the stock.
Growth needs to materialize to justify valuation. Over the last year, BlackBerry’s valuation has increased from 2.8x FTM EV/S to 6.0x currently, above enterprise security software peers at 3.5x (EMM comparable MobileIron at 1.7x). Design win momentum is positive, though visibility to revenue is limited and appears to be priced into the stock. We believe core software revenue growth needs to accelerate or visibility improve to justify further upside for the stock.
Maintaining $11.00 price target. Our $11.00 target equates to 4.1x CY19E EV/S on “company total” software revenue, which compares to enterprise security software peers at 3.5x. The premium, in our view, is justified by stronger FTM software growth (13% vs. peers at 4%).
Exhibit 9: BlackBerry is trading above enterprise security software peers on an EV/S basis
Price Market EV Price/Earnings EV/EBITDA EV/Sales Growth (FTM) Company Ticker 11-Jan-18 Cap. (MM) (MM) FTM CY18E FTM CY18E FTM CY18E EPS EBITDA Rev.
BlackBerry BB $13.45 $7,162 $5,214 N/A N/A 49.2x 47.3x 6.0x 5.9x -78% -36% -15%
Enterprise Security Software: Cisco Systems CSCO $40.10 $200,259 $164,553 16.1x 15.9x 9.5x 9.5x 3.4x 3.4x 4% 12% 2% Qualcomm QCOM $65.43 $97,294 $83,379 18.4x 17.9x 10.7x 10.5x 3.6x 3.6x -17% 54% 3% VMware VMW $133.27 $55,042 $47,662 24.0x 23.9x 14.9x 14.8x 5.8x 5.5x N/A 55% 7% Citrix Systems CTXS $89.81 $13,887 $13,795 18.5x 18.8x 13.2x 13.6x 4.8x 4.8x 0% 28% -3% Mobileiron MOBL $4.15 $394 $312 N/A N/A N/A N/A 1.7x 1.7x N/A -93% 7% Absolute Software ABT-T C$6.90 $213 $181 89.3x 61.6x 18.9x 17.3x 1.9x 1.8x N/A -9% 6% Enterprise Security Software Average 33.3x 27.6x 13.4x 13.1x 3.5x 3.5x -4% 8% 4%
Telematics: Trimble TRMB $42.99 $11,087 $11,374 26.2x 25.4x 20.2x 19.5x 4.0x 3.9x 16% 29% 12% ORBCOMM ORBC $10.54 $777 $953 N/A N/A 16.4x 14.7x 3.4x 3.4x N/A 1040% 23% CalAmp CAMP $23.15 $834 $854 18.6x 17.9x 15.0x 14.3x 2.3x 2.2x 18% 42% 8% ID Systems IDSY $6.93 $112 $105 24.8x 18.6x 19.4x 14.7x 1.9x 1.8x N/A -240% 39% Telematics Average 23.2x 20.6x 17.8x 15.8x 2.9x 2.9x 17% 218% 21% Note: Estimates for BlackBerry are RBC CM estimates; all other estimates are consensus. Source: RBC Capital Markets estimates; Thomson ONE; Company reports
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 13 Telecom & Networking Equipment BlackBerry Limited
Exhibit 10: BlackBerry – Financial estimates
Year Ended Feb 28 FY17A - FY2018E FY2019E FY2020E US$ MM except per share figures FY2017A FY2018E FY2019E FY2020E FY20E CAGR Q1A Q2A Q3A Q4E Q1E Q2E Q3E Q4E Q1E Q2E Q3E Q4E
Revenue: Enterprise Software & Services 409.0 417.6 448.9 475.8 5.2% 101.0 102.0 106.0 108.6 109.1 110.2 113.4 116.2 115.6 116.8 120.2 123.2 BlackBerry Technology Solutions (BTS) 151.0 160.1 199.2 247.1 17.8% 36.0 38.0 43.0 43.1 43.9 45.6 53.8 56.0 57.1 58.4 64.5 67.2 Licensing, IP & Other 127.0 185.6 196.6 216.3 19.4% 32.0 56.0 50.0 47.6 48.0 48.2 50.0 50.5 52.8 53.0 55.0 55.5 Handheld Devices 374.0 63.5 0.0 0.0 N/A 37.0 16.0 9.0 1.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 SAF 313.0 118.0 44.0 25.7 -56.6% 38.0 37.0 27.0 16.0 12.8 11.5 10.4 9.3 7.5 6.7 6.0 5.4 Total Revenue 1,374.0 944.8 888.8 964.9 -11.1% 244.0 249.0 235.0 216.8 213.8 215.4 227.5 232.0 233.0 234.8 245.8 251.3 Y/Y % -37.3% -31.2% -5.9% 8.6% -42.5% -29.3% -21.9% -27.0% -12.4% -13.5% -3.2% 7.0% 9.0% 9.0% 8.0% 8.3% Q/Q% -17.8% 2.0% -5.6% -7.8% -1.4% 0.8% 5.6% 2.0% 0.4% 0.8% 4.7% 2.3%
Cost of Revenue 525.0 245.9 206.6 221.9 81.0 59.0 55.0 50.9 50.2 50.6 52.3 53.4 53.6 54.0 56.5 57.8 Gross Profit 849.0 698.8 682.2 743.0 163.0 190.0 180.0 165.8 163.6 164.8 175.2 178.6 179.4 180.8 189.2 193.5 Gross margin 61.8% 74.0% 76.8% 77.0% 66.8% 76.3% 76.6% 76.5% 76.5% 76.5% 77.0% 77.0% 77.0% 77.0% 77.0% 77.0% Total operating expenses 796.0 637.6 651.4 661.6 -6.0% 149.0 161.0 164.0 163.6 161.5 162.7 163.6 163.6 165.5 164.5 167.3 168.3 Adj. EBITDA 182.0 149.3 118.8 169.4 -2.4% 40.0 50.0 35.0 24.3 24.0 24.2 33.6 37.0 37.1 37.4 46.7 48.2 Adj. EBITDA margin 13.2% 15.8% 13.4% 17.6% 16.4% 20.1% 14.9% 11.2% 11.2% 11.2% 14.8% 15.9% 15.9% 15.9% 19.0% 19.2% Depreciation & amortization 167.0 111.0 108.0 108.0 33.0 27.0 24.0 27.0 27.0 27.0 27.0 27.0 27.0 27.0 27.0 27.0 Adj. EBIT 53.0 61.3 30.8 81.4 15.4% 14.0 29.0 16.0 2.3 2.0 2.2 11.6 15.0 15.1 15.4 24.7 26.2 Adj. EBIT margin 3.9% 6.5% 3.5% 8.4% 5.7% 11.6% 6.8% 1.0% 1.0% 1.0% 5.1% 6.5% 6.5% 6.5% 10.1% 10.4% Interest income (expense) -27.0 -2.6 -1.9 0.7 -3.0 1.0 0.0 -0.6 -0.7 -0.6 -0.4 -0.2 -0.1 0.1 0.3 0.5 Other expenses 1,234.0 -363.0 0.0 0.0 -661.0 7.0 291.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Income (loss) before taxes -1,208.0 421.7 28.9 82.1 672.0 23.0 -275.0 1.7 1.4 1.6 11.2 14.8 15.0 15.4 25.0 26.7 Taxes -2.0 5.0 0.0 0.0 1.0 4.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Adj.tax rate 0.2% 1.2% 0.0% 0.0% 0.1% 17.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
GAAP Net Income -1,206.0 416.7 28.9 82.1 N/A 671.0 19.0 -275.0 1.7 1.4 1.6 11.2 14.8 15.0 15.4 25.0 26.7 Net margin % -87.8% 44.1% 3.3% 8.5% 275.0% 7.6% -117.0% 0.8% 0.6% 0.7% 4.9% 6.4% 6.5% 6.6% 10.2% 10.6% Adj. Net Income 28.0 53.7 28.9 82.1 43.1% 10.0 26.0 16.0 1.7 1.4 1.6 11.2 14.8 15.0 15.4 25.0 26.7 Adj. net margin % 2.0% 5.7% 3.3% 8.5% 4.1% 10.4% 6.8% 0.8% 0.6% 0.7% 4.9% 6.4% 6.5% 6.6% 10.2% 10.6%
GAAP EPS ($2.30) $0.78 $0.05 $0.15 $1.23 $0.04 ($0.52) $0.00 $0.00 $0.00 $0.02 $0.03 $0.03 $0.03 $0.05 $0.05 Adj. EPS $0.05 $0.10 $0.05 $0.15 42.2% $0.02 $0.05 $0.03 $0.00 $0.00 $0.00 $0.02 $0.03 $0.03 $0.03 $0.05 $0.05 Diluted shares outstanding 525.4 535.0 534.4 536.5 544.1 530.4 532.5 533.0 533.6 534.1 534.6 535.2 535.7 536.2 536.8 537.3
Debt & Cashflow: Net cash 1,107.0 1,826.6 2,053.8 2,343.9 1,948.0 1,966.0 1,948.0 1,826.6 1,870.2 1,919.9 1,987.5 2,053.8 2,116.0 2,179.8 2,264.3 2,343.9 Net cash per share $2.11 $3.41 $3.84 $4.37 $3.58 $3.71 $3.66 $3.43 $3.51 $3.59 $3.72 $3.84 $3.95 $4.06 $4.22 $4.36 Operating cash flow -224.0 754.6 267.1 330.1 N/A 863.0 4.0 -1.0 -111.4 53.6 59.7 77.6 76.3 72.3 73.7 94.6 89.6 Free cash flow -241.0 740.6 255.1 318.1 N/A 860.0 1.0 -6.0 -114.4 50.6 56.7 74.6 73.3 69.3 70.7 91.6 86.6 Free cash flow / share ($0.46) $1.38 $0.48 $0.59 N/A $1.58 $0.00 ($0.01) ($0.21) $0.09 $0.11 $0.14 $0.14 $0.13 $0.13 $0.17 $0.16 Source: Company reports, RBC Capital Markets estimates
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 14 Telecom & Networking Equipment BlackBerry Limited
Valuation Our $11.00 price target equates to 4.1x CY19E EV/S on "company total" software revenue, which compares to enterprise security software peers at 3.5x. The premium, in our view, is justified given stronger FTM software growth (13% vs. peers at 4%). Our $11.00 price target supports a Sector Perform rating. Risks to rating and price target Risks to our price target and rating include: a general pullback in technology valuations; slower-than-expected uptake of the BB10 platform; market acceptance of its new products; faster-than-expected declines in ARPU, margins and ASPs; opex spending may be higher than expected; new product launches may be later than expected; and BlackBerry may not monetize new services and software. Company description BlackBerry is a Waterloo, Ontario-based developer of enterprise mobility management (EMM) software, embedded operating systems for automotive and other vertical markets, smartphones and related software and services. Founded in 1984, BlackBerry introduced its smartphone brand in 1999, which has been the focus of the company for more than a decade. BlackBerry is shifting its business model toward enterprise solutions and services, and it acquired Good Technology for $425MM in November 2015.
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 15 Telecom & Networking Equipment BlackBerry Limited
Required disclosures Non-U.S. analyst disclosure Paul Treiber (i) is not registered/qualified as a research analyst with the NYSE and/or FINRA and (ii) may not be associated persons of the RBC Capital Markets, LLC and therefore may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. Conflicts disclosures The analyst(s) responsible for preparing this research report received compensation that is based upon various factors, including total revenues of the member companies of RBC Capital Markets and its affiliates, a portion of which are or have been generated by investment banking activities of the member companies of RBC Capital Markets and its affiliates.
Please note that current conflicts disclosures may differ from those as of the publication date on, and as set forth in, this report. To access current conflicts disclosures, clients should refer to https://www.rbccm.com/GLDisclosure/PublicWeb/ DisclosureLookup.aspx?entityId=1 or send a request to RBC CM Research Publishing, P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South Tower, Toronto, Ontario M5J 2W7.
RBC Capital Markets, LLC makes a market in the securities of BlackBerry Limited.
RBC Dominion Securities Inc. makes a market in the securities of BlackBerry Limited.
A member company of RBC Capital Markets or one of its affiliates received compensation for products or services other than investment banking services from BlackBerry Limited during the past 12 months. During this time, a member company of RBC Capital Markets or one of its affiliates provided non-securities services to BlackBerry Limited.
RBC Capital Markets is currently providing BlackBerry Limited with non-securities services.
RBC Capital Markets has provided BlackBerry Limited with non-securities services in the past 12 months. Explanation of RBC Capital Markets Equity rating system An analyst''s ''sector'' is the universe of companies for which the analyst provides research coverage. Accordingly, the rating assigned to a particular stock represents solely the analyst''s view of how that stock will perform over the next 12 months relative to the analyst''s sector average. Although RBC Capital Markets'' ratings of Top Pick (TP)/Outperform (O), Sector Perform (SP), and Underperform (U) most closely correspond to Buy, Hold/Neutral and Sell, respectively, the meanings are not the same because our ratings are determined on a relative basis. Ratings Top Pick (TP): Represents analyst''s best idea in the sector; expected to provide significant absolute total return over 12 months with a favorable risk-reward ratio. Outperform (O): Expected to materially outperform sector average over 12 months. Sector Perform (SP): Returns expected to be in line with sector average over 12 months. Underperform (U): Returns expected to be materially below sector average over 12 months. Risk Rating As of March 31, 2013, RBC Capital Markets suspends its Average and Above Average risk ratings. The Speculative risk rating reflects a security''s lower level of financial or operating predictability, illiquid share trading volumes, high balance sheet leverage, or limited operating history that result in a higher expectation of financial and/or stock price volatility.
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 16 Telecom & Networking Equipment BlackBerry Limited
Distribution of ratings For the purpose of ratings distributions, regulatory rules require member firms to assign ratings to one of three rating categories - Buy, Hold/Neutral, or Sell - regardless of a firm''s own rating categories. Although RBC Capital Markets'' ratings of Top Pick(TP)/ Outperform (O), Sector Perform (SP), and Underperform (U) most closely correspond to Buy, Hold/Neutral and Sell, respectively, the meanings are not the same because our ratings are determined on a relative basis (as described above). Distribution of ratings RBC Capital Markets, Equity Research As of 31-Dec-2017 Investment Banking Serv./Past 12 Mos. Rating Count Percent Count Percent BUY [Top Pick & Outperform] 868 52.42 281 32.37 HOLD [Sector Perform] 683 41.24 155 22.69 SELL [Underperform] 105 6.34 8 7.62
References to a Recommended List in the recommendation history chart may include one or more recommended lists or model portfolios maintained by RBC Wealth Management or one of its affiliates. RBC Wealth Management recommended lists include the Guided Portfolio: Prime Income (RL 6), the Guided Portfolio: Dividend Growth (RL 8), the Guided Portfolio: ADR (RL 10), and the Guided Portfolio: All Cap Growth (RL 12), and former lists called the Guided Portfolio: Large Cap (RL 7), the Guided Portfolio: Midcap 111 (RL 9), and the Guided Portfolio: Global Equity (U.S.) (RL 11). RBC Capital Markets recommended lists include the Strategy Focus List and the Fundamental Equity Weightings (FEW) portfolios. The abbreviation ''RL On'' means the date a security was placed on a Recommended List. The abbreviation ''RL Off'' means the date a security was removed from a Recommended List. Equity valuation and risks For valuation methods used to determine, and risks that may impede achievement of, price targets for covered companies, please see the most recent company-specific research report at https://www.rbcinsightresearch.com or send a request to RBC Capital Markets Research Publishing, P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South Tower, Toronto, Ontario M5J 2W7. BlackBerry Limited Valuation
January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 17 Telecom & Networking Equipment BlackBerry Limited
Our $11.00 price target equates to 4.1x CY19E EV/S on "company total" software revenue, which compares to enterprise security software peers at 3.5x. The premium, in our view, is justified given stronger FTM software growth (13% vs. peers at 4%). Our $11.00 price target supports a Sector Perform rating.
Risks to rating and price target
Risks to our price target and rating include: a general pullback in technology valuations; slower-than-expected uptake of the BB10 platform; market acceptance of its new products; faster-than-expected declines in ARPU, margins and ASPs; opex spending may be higher than expected; new product launches may be later than expected; and BlackBerry may not monetize new services and software. Conflicts policy RBC Capital Markets Policy for Managing Conflicts of Interest in Relation to Investment Research is available from us on request. To access our current policy, clients should refer to https://www.rbccm.com/global/file-414164.pdf or send a request to RBC Capital Markets Research Publishing, P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South Tower, Toronto, Ontario M5J 2W7. We reserve the right to amend or supplement this policy at any time. 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January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 18 Telecom & Networking Equipment BlackBerry Limited
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January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 19 Telecom & Networking Equipment BlackBerry Limited
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January 12, 2018 Paul Treiber, CFA (416) 842-7811; [email protected] 20