Blackberry 2016 Annual Report Download - page 92

BlackBerry Limited
Notes to the Consolidated Financial Statements
In millions of United States dollars, except share and per share data, and except as otherwise indicated
24
The amounts of revenue and net loss before income taxes of the acquisitions above (excluding intercompany amounts)
included in the consolidated statements of operations for the year ended February 29, 2016 are as follows:
Good WatchDox/AtHoc/ Encription Total
Revenue(1)
Net loss
before income
taxes(2) Revenue(1)
Net loss
before income
taxes(2) Revenue(1)
Net loss
before income
taxes(2)
Actuals from acquisition date to February 29,
2016 $ 48 $ (8) $ 22 $ (11) $ 70 $ (19)
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(1) Includes revenue recognized related to deferred revenue, the fair value of which represents the costs to service the
assumed obligations, plus a normal margin, as required under purchase accounting.
(2) Net loss before income taxes reflects costs associated with ongoing integration activities completed after the
acquisition date.
Supplemental Pro Forma Combined Financial Statements
The following pro forma combined results for the years ended February 29, 2016, February 28, 2015 and March 1, 2014
reflect the consolidated statements of operations of the Company as if the acquisitions of Good, AtHoc, WatchDox and
Encription had occurred at the beginning of fiscal 2014. These results combine the historical results of Good, AtHoc, WatchDox
and Encription’s consolidated statements of operations and are not necessarily indicative of the consolidated results of
operations of the combined business had the acquisitions actually occurred at the beginning of fiscal 2014 or of the results
of future operations of the combined business.
The supplemental pro forma information, as if the acquisitions had occurred on March 3, 2013, is as follows:
For the Years Ended
February 29, 2016 February 28, 2015 March 1, 2014
Revenue $ 2,332 $ 3,586 $ 7,007
Net loss (297) (426) (6,014)
February 29, 2016, February 28, 2015, and March 1, 2014 supplemental pro forma results were adjusted to exclude $13
million, $20 million and $20 million, respectively of Good revenue which was recognized from the Company.
In fiscal 2015, the Company acquired the following businesses:
Secusmart GmbH
On December 1, 2014, the Company acquired all of the issued and outstanding shares of Secusmart GmbH (“Secusmart”),
a developer of high-security voice and data encryption and anti-eavesdropping solutions, for $82 million in cash and future
contingent consideration with a fair value of $17 million. The acquisition supported the Company’s continued focus on the
government market and regulated industries and strengthened its secure enterprise mobility portfolio by adding a leading
secure voice and text messaging solution with Secusmart’s advanced encryption and anti-eavesdropping capabilities.
Movirtu Limited
On September 8, 2014, the Company acquired all of the issued and outstanding shares of Movirtu Limited (“Movirtu”), a
virtual SIM solutions company based in the United Kingdom, for $32.5 million of cash consideration (including transaction
expenses of $2 million). The acquisition provides the basis for a variety of innovative service offerings, including the WorkLife
by BlackBerry solution that allows an enterprise to provision a work phone number and data plan onto a device with a single
standard SIM card.
Other acquisitions
On July 31, 2014, the Company paid $9 million for all of the assets constituting the business of a provider of cloud-based
software technology allowing users to connect devices and build an ecosystem with their data. With this acquisition, the
Company obtained technology closely aligned to the BlackBerry Internet of Things platform.