BlackBerry

Could BlackBerry's Turnaround Efforts be Beginning to Gain Traction?

1 min read
This story originally appeared on Reuters

BlackBerry Ltd posted better-than-expected quarterly earnings on Friday, offering signs its turnaround efforts may be beginning to gain traction, but a larger-than-expected drop in revenue gave investors cause for concern.

The stock fell 2.5 percent to $9.07 in premarket Nasdaq trading.

Waterloo, Ontario-based BlackBerry reported net profit of $28 million, or 5 cents a share, in the fourth quarter ended Feb. 28. That compared with a year-earlier loss of $148 million, or 28 cents a share.

Excluding one-time items, quarterly profit was $20 million, or 4 cents a share. Analysts, on average, expected a loss of 4 cents a share in the period, according to Thomson Reuters I/B/E/S.

Quarterly revenue, however, slid to $660 million from $793 million, and was well below Wall Street expectations of $786.4 million.

In a positive sign, software revenue rose 20 percent from a year earlier to $67 million. The revenues are a key metric that analysts are looking at this quarter, given the company's ongoing transition to a more software-driven revenue stream, away from its more traditional hardware- and services-driven model.

(Reporting by Euan Rocha; Editing by Jeffrey Benkoe)

More from Entrepreneur

Jason's expertise and experience can help you with storytelling, motivation, and pitching your business to media.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.

Latest on Entrepreneur