Blackberry Expanding IP Licensing Business

Blackberry’s IP licensing business will generate more than $100 million in revenue this year through a combination of brand and technology licensing, CEO John Chen told analysts.

On the brand licensing side, Chinese manufacturer TCL is launching its second generation Blackberry Key2, which combines a physical keyboard with a 4.5-inch LCD screen, in the U.S. on July 13 with pre-orders on Amazon and Bestbuy.com starting this Friday. In India, supplier Optiemus will ship “multiple” Blackberry-branded smartphones this summer.

Separately, the UK’s Bullitt Group has unveiled plans for co-branded Blackberry smartphones under the CAT (Caterpillar) and Land Rover brands and Switzerland-based mobile phone supplier Punkt has licensed the Blackberry brand in conjunction with licensing its highly rated cyber security technology.

In Q1 ended May 31, the company’s licensing revenue nearly doubled to $63 million and there is “stronger momentum” in that business, Chen said. Since dropping its smartphone device business in 2016, Blackberry has focused on brand licensing and technology and signed with TCL that same year.

Overall, it registered a $60 million net loss in Q1 compared to a $671 million profit in the year-earlier period, which included an $817 million arbitration award received as part of a settlement with Qualcomm. Total Q1 revenue declined 9.3% to $213 million.

Contact:

Blackberry, James Yersh, CFO, 519-888-7465

Kroger’s Private Label Business Increasing

Kroger’s sales of private label products rose 5.1% to an all-time high of about $10 billion in Q1 ended May 26, accounting for 26.7% of the grocery chain’s $37.5 billion in revenue. Private label growth outpaced the company’s overall 3.4% revenue increase, CEO Rodney McMullen said. The private label business was led by Kroger’s Simple Truth brand, which posted a double-digit revenue gain.

Contact:

Kroger, Michael Schlotman, CFO, 513-762-4000