BlackBerry posts smaller loss than expected as it marches toward profitability

By Emily Bary

BlackBerry's stock rises after results for the latest quarter top expectations

BlackBerry Ltd. on Wednesday posted a loss for the latest quarter, but it was one that came in narrower than expected as the company works toward returning to adjusted profitability.

The technology company, which operates in the Internet of Things and cybersecurity markets, posted a fiscal first-quarter net loss of $42 million, or 7 cents a share. That was wider than the $11 million loss that BlackBerry posted in the year-earlier quarter, but the loss narrowed on a sequential basis from the $56 million loss seen in the February period.

On an adjusted basis, BlackBerry lost 3 cents a share, whereas it had earned 6 cents a share a year earlier. But the company beat expectations on the metric, as analysts tracked by FactSet were looking for a 5 cent per-share loss.

Shares of BlackBerry (BB) rose 8% in Wednesday's after-hours action.

"BlackBerry remains on track to be both profitable on a non-GAAP basis and generating positive cash flow in the fourth quarter," Chief Executive John Giamatteo said in a release.

Quarterly revenue came in at $144 million, down from $173 million in the February quarter and $373 million in the year-earlier period. That metric also topped the consensus view of $131.6 million.

"The company is making significant progress toward operational independence for our IoT and cybersecurity businesses, as well as toward profitability," Giamatteo said. IoT revenue was up 18% from a year before.

For the ongoing quarter, BlackBerry forecasts $136 million to $144 million in revenue along with an adjusted loss per share of 2 cents to 4 cents. That compares with the $139.7 million and 3 cents, respectively, that analysts tracked by FactSet were modeling.

-Emily Bary

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06-26-24 2017ET

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