Despite Less Revenue, BlackBerry Turns a Small Profit
BlackBerry Ltd on Friday reported a small adjusted third-quarter profit and returned to positive cash flow, but shares fell as revenue declined more than expected.
Revenue fell to $793 million from $1.19 billion a year earlier, falling short of expectations. Analysts expected $931.5 million.
BlackBerry's Nasdaq-listed shares fell 5.6 percent to $9.50 in premarket trading.
Cash flow was positive $43 million in the third quarter, while the company had negative cash flow of $36 million in the second quarter. BlackBerry had said it was targeting break-even cash flow by the end of the fiscal year in February 2015.
Colin Gillis, tech analyst at BGC Partners in New York, said BlackBerry Chief Executive Officer John Chen did a good job controlling expenses to boost the company's cash pile.
"The fact that he overachieved by turning cash flow positive this quarter. That's a great milestone," said Gillis. "It gets easier from here."
Excluding, a one-time non-cash debenture charge and restructuring charges, the company reported a profit of 1 cent a share. Analysts polled by Thomson Reuters I/B/E/S expected a loss of 5 cents.
The Waterloo, Ontario-based company reported a net loss of $148 million, or 28 cents a share, in the quarter ended Nov. 29. That compared with a year-earlier loss of $4.4 billion, or $8.37 a share.
BlackBerry launched its long-awaited Classic smartphone on Wednesday, hoping to help win back market share and woo customers still using older versions of its physical keyboard devices. The phone resembles its once wildly popular Bold and Curve handsets.
(Reporting by Euan Rocha, Allison Martell, Jeffrey Hodgson and Alastair Sharp; Editing by W Simon and J Benkoe)