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BlackBerry shares up as software sales hit record

The Canadian company last year stopped manufacturing the iconic BlackBerry smartphone to focus on software
The Canadian company last year stopped manufacturing the iconic BlackBerry smartphone to focus on software

BlackBerry today reported stronger-than-expected quarterly results and increased its fiscal-year revenue forecast after sales at its closely watched software business hit a record. 

The Canadian company last year stopped manufacturing the iconic BlackBerry smartphone to focus on software.

It reported a profit of 5 cents a share before special items for the second quarter ended on August 31, compared with break-even per share a year earlier. 

Revenue fell to $249m from $352m a year earlier but rose slightly from $244m in the previous quarter. 

Analysts had on average expected BlackBerry to break even on revenue of $220m, excluding items, according to Thomson Reuters I/B/E/S. 

Net income for the quarter was $19m, or 4 cents per share. 

Excluding restructuring costs and other items, BlackBerry said it expected fiscal-year revenue of $920m to $950m and positive earnings per share. It also forecast positive free cash flow. 

The Ontario-based company is aiming to notch 10-15% software revenue growth for its fiscal year, which runs until the end of February. 

BlackBerry said software and services revenue reached a record $196m in the quarter, more than analysts' estimates.