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

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Our BES 12 seating program —  the EZ Pass — now has over 4,900 total customer registrations, which is about 1,300 more than last quarter when we reported. As of today we have 6.8 million licenses turned in. 100% growth over last quarter. So very, very well received. Of these licenses about one-third were traded in from competitors.

With this uptake exceeding our goal, obviously somewhat way exceeded my goal, our attention is now turning to monetizing it for FY16. So we have decided to end the EZ Pass sign up at the end of this month, at the end of December.

Launch of the value-added services. On Wednesday when we launched our Classic in New York and Frankfurt and Singapore, we also launched two bundles.

First our secure productivity bundles, which include VPN solution, BBM Protected and Blend for $6 a user a month.

Second, the second bundle is the Enterprise Communicator Bundle which includes the BBM Protected and BBM Meetings for $12 per user per month and I think some of you who have been to our launch event have seen the power of that and we have done a good demo.

Those of you who haven’t seen it and would like to see it, I’m sure that calling our team, we’ll make sure that we can arrange to show you that.

Lastly we successfully completed our acquisition of Secusmart, which is the encrypted voice solution — encrypted voice and encrypted text solutions in Germany, as well as Movirtu, which is a soft SIM company in UK.

On the distribution front, we also have made good progress and we’re going to make more of that. We are deploying our — as I pointed out earlier — our internal resources to boost our effort there already.

On the indirect channel side we have signed a couple of new agreements including Ingram Micro and Brightstar and they by the way are not only in the hardware side of the equation as well as the software side. They are reselling some of our software solutions.

Carrier, who had also agreed to resell our software included Vodafone, Verizon, China Mobile and India Idea Cellular and more. But we picked Airtel because they have pretty broad reach.

We are one of the first and the only company that we know of that provide the so-called enhanced SIM based licensing billings for the enterprise software and this means that software could be charged to the phone bill. And this will really facilitate how businesses does or do buy our software or use our software through carriers and our partners.

We are on that solution — the enhanced system-based licensing. We are now live with not only the Idea Cellular India but we’re also live with Vodafone in Germany. And then we of course we intend to roll out to more carriers in more countries over the next 12 months.

I’d like to spend a minute on the online side. We have been stepping up our effort on the online channels and this will be a strong continued focus of ours going forward.

There are now over a 170 websites selling our products around the world, in addition to our initial core of the Amazon and blackberry.com, we’ll have more on our way.

We have been doing very good business on both the Amazon as well as the BlackBerry and Amazon of course. You all know that it has stocked out a number of times so has blackberry.com. So receptivity has to be very strong.

We also have on the vertical partner side and application partner side we have expanded our ecosystem to embed some of our solutions in some of these partnerships like NantHealth, on the human genome projects, cancer research projects and Samsung, of course, we talked about helping each other on the KNOX space. Salesforce.com and more and stay tuned, there are more to come.

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