Morgan Stanley Comments on BlackBerry Prior to Q2 Earnings

In a note published earlier Friday morning, Morgan Stanley analyst, James Faucette provided some insight into what he expects out of BlackBerry BBRY in the second quarter. Faucette commented, "We expect an in-line quarter that demonstrates financial and operational stabilization ahead of key releases in the coming quarter." He added it will be difficult to judge the health of the company's new products as their releases are staggered towards the end of the calendar year. Due to the lack of new product releases, Faucette says "no bad news will be good news". He is looking for BlackBerry's cash burn to come in under last quarter's $255 million and is modeling $133 million. In addition to this, he is looking for operating expenditures to continue on the path to 51 percent of revenue. Faucette ended by noting he expects results to be largely in-line with his expectations of $899 million in revenue and $(0.21) in EPS. Faucette currently rates BlackBerry at Equal-weight and has not yet set a price target.