Indicating turnaround efforts may be gaining traction BlackBerry reported its first quarter-to-quarter revenue gain in over two years o Friday as the company reported a smaller-than-expected fiscal third-quarter loss.
BlackBerry shares were up by 6.3 percent to $8.29 in premarket trading in New York as the results of the company which were better-than-expected was driven by higher hardware and software revenues.
The Waterloo, Ontario-based company reported a loss of $89 million, or 17 cents a share in the quarter ended Nov. 28. That compared with a year ago loss of $148 million, or 28 cents a share.
The company posted a loss of $15 million, or 3 cents a share excluding a noncash credit tied to a change in the fair value of debentures, restructuring charges and other one-time items.
While the company quarterly revenues, recorded at $548 million, rose 12 percent from the prior quarter, after nine consecutive quarters of declines, it was 31 percent lower than the revenues on a year-to-year basis.
According to Thomson Reuters I/B/E/S, analysts, on average, expected the company to post a loss of 14 cents a share on revenue of $489 million.
The software revenue for the company more than doubled to $162 million from a year earlier. This is a new business focus of the company and a key metric closely watched by analysts.
“That’s encouraging – that tells me they’re on track to hit their $500-million target,” said John Butler, an analyst at Bloomberg Intelligence.
Analysts claimed that BlackBerry Ltd. raved up its software business after its acquisition of Good Technology Corp.
The company has forecast a target of $500 million for the current fiscal year ending Feb. 29, 2016 in revenues from its software business. the year-to-date software revenue touched $362 million for blackberry and the company seems within striking range of the forecast.
The sale of smartphone also rose for the company as the revenues from the sale touched $214 million from $201 million in the second quarter, clocking a rise for the first time in four quarters.
However the company did not disclose device shipment numbers.
Very recently, the company had launched its first smarphone, Priv, which is powered by Alphabet Inc's Google Android operating system. Sources said that the company sold just 700,000 units despite the launch of the Priv slider phone.
"We are stepping up investments to drive continued software growth and the additional Priv launches," said Chief Executive Officer John Chen, adding that he expects this to result in sequential revenue increases in the fiscal fourth quarter.
“My first goal is to get devices in break-even. Maybe this quarter, maybe a quarter later. I have been very vocal, if I cannot get there I will not keep taking my investors through that. At this moment in time I’m looking at getting to break even and begin adding value,” Mr. Chen told analysts during an investor call.
(Source:www.reuters.com & www.ctvnews.ca)
BlackBerry shares were up by 6.3 percent to $8.29 in premarket trading in New York as the results of the company which were better-than-expected was driven by higher hardware and software revenues.
The Waterloo, Ontario-based company reported a loss of $89 million, or 17 cents a share in the quarter ended Nov. 28. That compared with a year ago loss of $148 million, or 28 cents a share.
The company posted a loss of $15 million, or 3 cents a share excluding a noncash credit tied to a change in the fair value of debentures, restructuring charges and other one-time items.
While the company quarterly revenues, recorded at $548 million, rose 12 percent from the prior quarter, after nine consecutive quarters of declines, it was 31 percent lower than the revenues on a year-to-year basis.
According to Thomson Reuters I/B/E/S, analysts, on average, expected the company to post a loss of 14 cents a share on revenue of $489 million.
The software revenue for the company more than doubled to $162 million from a year earlier. This is a new business focus of the company and a key metric closely watched by analysts.
“That’s encouraging – that tells me they’re on track to hit their $500-million target,” said John Butler, an analyst at Bloomberg Intelligence.
Analysts claimed that BlackBerry Ltd. raved up its software business after its acquisition of Good Technology Corp.
The company has forecast a target of $500 million for the current fiscal year ending Feb. 29, 2016 in revenues from its software business. the year-to-date software revenue touched $362 million for blackberry and the company seems within striking range of the forecast.
The sale of smartphone also rose for the company as the revenues from the sale touched $214 million from $201 million in the second quarter, clocking a rise for the first time in four quarters.
However the company did not disclose device shipment numbers.
Very recently, the company had launched its first smarphone, Priv, which is powered by Alphabet Inc's Google Android operating system. Sources said that the company sold just 700,000 units despite the launch of the Priv slider phone.
"We are stepping up investments to drive continued software growth and the additional Priv launches," said Chief Executive Officer John Chen, adding that he expects this to result in sequential revenue increases in the fiscal fourth quarter.
“My first goal is to get devices in break-even. Maybe this quarter, maybe a quarter later. I have been very vocal, if I cannot get there I will not keep taking my investors through that. At this moment in time I’m looking at getting to break even and begin adding value,” Mr. Chen told analysts during an investor call.
(Source:www.reuters.com & www.ctvnews.ca)
