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

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The other ASP must have fallen too. If you can give us a sense as to, was that — I would have thought it would have a lot of Z3s that did that.

But John your commentary seemed to — maybe I misread it — but it sounded like Z3 wasn’t quite that strong in the quarter. So just want to understand what was it that really pushed that ASP down?

And then finally on the 6.9 EZ Pass subs. A really nice number that keeps growing. Can you give us a sense that if EZ Pass ends today, if nothing else happened and you stick with the 6.9 million EZ Pass subs and they stay on whatever plan they are,  it would be good if you can give us a sense if they are Silver or what percentage of those are Gold, what type of revenue does that generate right after that, if you don’t get any more subs?

And then if we can get a modeling sense as to how that grows with each incremental sub you bring in. But assuming you just have the 6.9 million EZ Pass subs on your program going forward, once the program ends what does that generate on a monthly basis going forward right there. That would be really helpful. Thank you.

John Chen

Okay. There is a lot of questions here, but I will answer a couple and James also to maybe even augment the answers I have.

First off, the software line it’s not because of QNX. QNX is actually performing pretty good. It has to do with we are turning perpetual license to subscription based license. More so than anything else, it’s not so much of the volume of the business  as the recognizing of the revenue of the business.

Let me jump to the last one, the EZ Pass one.

The model, first of all, I think you need to give us about a quarter so that we actually accumulate the actual experience because we are going to cut it off end of December and then we’re going to start converting people and then when they convert they pay us T-support as the first move and then we will upsell them into the Gold level of the path or the licenses, and then we will broaden out the number of device being managed, so that’s the monetization strategy behind it.

It goes through multiple channels, the carriers, the distributors and our direct sales force. So you got to have to give us a little bit of time to understand that.

We have a model but we haven’t started that monetization effort yet. So all I could give you right now is kind of a model on our own.

So I think I should just refrain from just giving that. But in a quarter I will provide some of our early findings with that.

James Yersh

Okay. Ehud I think your last question in terms of ASP in the quarter, you threw a lot of the stats at us. But the one thing that I did pick up on you, you did say for example a 10% was associated with Passport in the quarter. I think you are high on that assumption.

Really the impact of ASP was driven by the end of life or near the end of inventory story for the legacy product. That was probably the biggest impact that had it there, I would say.

We do expect that to change going forward as nothing more… become more of the portfolio I would say because there is really nothing left of the old stuff.

John Chen

And the 200,000 for the ASP for Passport is actually not the correct figures because again I will remind you that we are on sell-through. So only a portion of the 200,000 actually is in the revenue number that you saw.

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