Blackberry Ltd (BBRY) Earnings Call Transcript: 2014 Q3, Q3 FY2015

Amitabh Passi

Okay, all right I appreciate it. Thank you.

John Chen

Thank you.

Operator

We’ll take our next question from Richard Tse with Cormark Securities.

James Yersh

Oh, hi Richard.

Richard Tse, Technology Analyst at Cormark Securities.

Hey! Thanks for getting me in here.

Listen, on your press release here you said 30% of licenses are from competing platforms. I just wanted to see if you guys could run through some of the main reasons why they are converting over here to your BES 12?

John Chen

Because, honestly it’s a much deeper and broader platform and we have a very healthy road map. A lot of people kicked the tires of the BES 12 and then security is probably the number cited reason for it.

Richard Tse

Okay and of your sub-base today how many would you say are Enterprise customers that are not necessarily on BES? Percentage breakdown.

James Yersh

In terms of mix, its that same as we have been talking about for roughly Richard 80% business users. If we stick with the 20% Enterprise, the answer to your question by math this would be about 60% then.

Richard Tse

Okay. So the 6 million is basically a very small number for what potential could be a huge base is that a fair assumption?

John Chen

The EZ Pass program, he was talking about… well the 6 million if you look at the number of BES, the Enterprise over paying customers in the sub-base is about 8 million to 10 million about that, when you add up all of the math. So 6 million and 30% of that are from competitors, so you take off that and the 4.7 million. So almost half of our base have upgraded. If that’s the metrics you are looking for.

Richard Tse

Okay all right, that’s great. Thank you.

John Chen

Thank you. Okay. Let me wrap because I am sorry I have to go and do my town hall meeting so I have all my employees waiting for me.

So I appreciate that you all tuned in for today. So I could summarize the fact that we are very proud of the fact we delivered a profitable quarter. Very positive cash flow.

We now have work to do on revenue and then we have got number of goal mentioned. We talked about that in hardware and software and value added service, QNX and the like and then we are going to talk about IOT at CES.

We’re also going to give you our BBM technology road map or CES for those people who are planning to join us and please do make sure you come and get the time and day and locations from our team.

And we’re also going to review our handset strategy at Mobile World Congress just like last year. We did the handset strategy review in last year and we’ll see in Barcelona. That’s I guess is the first week of March in Barcelona.

So with that, I wish you all a happy and safe holidays and thank you very much for tuning in.

Operator

And that concludes today’s conference call. Thank you for your participation.