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
Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Discover the franchise that’s right for you by answering some quick questions about
  • Which industry you’re interested in
  • Why you want to buy a franchise
  • What your financial needs are
  • Where you’re located
  • And more
Discover a better way to hire freelancers. From business to marketing, sales, finance, design, technology, and more, we have the freelancers you need to tackle your most important work and projects, on-demand.

Latest on Entrepreneur