A：For BlackBerry's third quarter fiscal year 2026, key financial results include total company revenue of $141.8 million, above the high end of guidance, with adjusted EBITDA at $28.7 million (20% margin), GAAP net income improved by $24.2 million year over year to $13.7 million, and non GAAP EPS at a positive 5 cents, exceeding guidance. Operating cash flow was $17.9 million, up three times year over year.

A：John Wall was appointed as president of QNX. His number one priority moving forward will be to harness the opportunities within the embedded software space, both the technology and the market, and to drive QNX's key initiatives.

A：QNX experienced design win momentum in Q3, exceeding internal targets, with a growing pipeline for potential design wins in Q4. They secured major automotive design wins with top European and Asian Oems for ADAS and cockpit domains using the latest version of the QNX platform SDP.

A：QNX continues to see traction with new products, securing new wins for QNX Sound and QNX Cabin as OE Ms for reducing bill of materials and time to market. QNX Sound was chosen by a leading Chinese OEM for their luxury electric vehicle. Additionally, QNX secured a multi-year contract for the cloud-based QNX Cabin product with a top five global automaker in Europe.

A：QNX has entered into a partnership with a leading middleware provider, Vector, for a vehicle software platform. The second early access version of QNX SDP 8 is scheduled for release by the end of January. Discussions with Oems are progressing well, and they aim to target significantly higher pricing per vehicle compared to the core QNX OS.

A：In the non-automotive general embedded space, QNX secured new design wins with industrial automation companies like Bentley Nevada and two European industrial automation Oems for their new versions of QNX SDP 8. There was also an exciting development in the aerospace and defense vertical with NASA adding QNX SDP 8 to their supported operating systems.

A：The Secure Communications division delivered revenue of $67 million, beating the top end of guidance and consensus, despite facing a U.S. government shutdown for a portion of the quarter. This was driven by better-than-expected renewals, with UEM accounting for just over half of the segment's revenue and a DBN RR of 92%.

A：UEM had an 8 figure multi-year renewal deal with the Dutch government, which is one of the significant expansion deals mentioned in the quarter.

A：BlackBerry UEM's first deal following the BSI certification was not specifically mentioned in the transcript, but the fact that the deal was enabled by the very demanding security certification was mentioned.

A：The financial performance of BlackBerry's secure communications division was solid, with a stabilization trend, improvements in renewal rates, and the ability to close new business. Licensing revenue was at 6.1 million, which met expectations. The division has shown a year of stabilization with improvements in renewal rates and the ability to close new business.

A：The current status of BlackBerry's balance sheet is solid, with total cash and investments up $111 million year over year and $14 million sequentially, totaling $370.575 million.

A：BlackBerry's approach to capital deployment is to drive growth and shareholder value by investing organically, especially in the QNX business to support key initiatives, and to continue delivering positive operating and free cash flow while increasing the net cash position. The company is also taking advantage of the undervalued share price through its buyback program.

A：The expectations for the fourth fiscal quarter include revenue for QNX being in the range of 71 to 77 million, with an expected adjusted EBITDA range of 17 to 23 million. For the full fiscal year, BlackBerry narrowed the revenue guidance range to 260 to 266 million for full year adjusted EBITDA, and raised the bottom end and midpoint of the guidance range for secure communications revenue and adjusted EBITDA. Licensing adjusted EBITDA guidance is now between 47 and 51 million, while total company revenue is expected between 138 and 148 million, with adjusted EBITDA between 22 and 32 million for the full fiscal year 2026.

A：EPS is now expected to be between 14 and 16 cents in the fourth quarter and between 3 and 5 cents for the full fiscal year.

A：QNX delivered its best-ever revenue quarter with a solid adjusted EBITDA of 24%, continued investing for long-term growth, and powered 275 million vehicles on the road.

A：The Secure communications division exceeded revenue expectations and demonstrated significant leverage with a 26% adjusted EBITDA margin, representing an improvement from the 9% EBITDA margin the division had in the same time last year.

A：BlackBerry plans to continue investing in go-to-market activities, expanding its footprint with more people on the street, and strengthening partnerships with distributors and technology providers to bring products to market faster.

A：The deal was likely won due to cost savings, weight savings, and superior software functionality, with cost savings being the lead factor. The Chinese market is price-sensitive, and the amount of money they can save by leveraging BlackBerry's technology plays a significant role.

A：A lot of focus and progress have been made towards the vehicle platform, with advancements in integrating QNX SDP 8 and the middleware. The collaboration with Vector is instrumental in bringing the integrated product to the market.

A：Safety is becoming increasingly important in the Chinese market, and QNX sees significant opportunities for its safety solutions. There has been a shift in awareness and concern for having an SDP 8 platform with safety certifications, which is expected to gain traction in the market.

A：The growth trend in the QNX business should be considered solid based on the double-digit growth over the last periods and the upcoming guide for fiscal 2027, which will be provided at the end of Q4. The backlog number in Q4 will also be a good indicator of future trends.

A：The strong royalties in Q3 were driven by new programs that the company has been winning over the last couple of years.

A：The business performance of the secure compartments segment is trending positively with a decline rate that is about half of what was projected in the last couple of quarters, raising the possibility that it could become a growth segment.

A：The strong pipeline being discussed indicates a solid foundation for future business performance, particularly in the upcoming quarter.

A：The company was able to navigate the US government shutdown effectively and while there were concerns, the impact on the quarter was not as severe as initially anticipated.

A：The company views the potential growth in the robotic space positively, anticipating that as robotics become more complex and require higher compute power, they will increasingly turn to QNX technology for their needs.

A：The company has learned that mission-critical software solutions, such as those they provide, are less likely to be cut during budget reviews, as evidenced by their experience with the US federal government's procurement during the shutdown.

A：Automakers get benefits such as cost savings and the ability to bring products to market more efficiently by partnering with the company on their vehicle software platform.

A：The company is the billing entity and will take the revenue, with a significant portion of the costs being passed on through cost of sales, indicating a clear economic split between Vector and the company.

A：The company has a comprehensive relationship with the Canadian government around UEM and is having productive discussions for expanding into other products like seccu smart and ad hoc. They have a significant presence and are actively pursuing opportunities with the Canadian government.

A：The company is employing a strategy that involves leveraging their current UEM relationship with the Canadian government and having productive discussions for expanding into other products, focusing on critical events management and other areas as the Canadian government increases its defense spending.