Blackberry posts Q3 loss, but things are looking up
BlackBerry's shrinking revenue is mostly due to its exit from the hardware portion of its legacy smartphone business, which has been only partially offset by increased revenue elsewhere
WATERLOO, Ont.—BlackBerry Ltd. lost US$275 million in its third quarter, although its revenue and adjusted earnings were better than analysts were expecting.
The Waterloo, Ont.-based technology company, which reports in U.S. dollars, says the net loss included $149 million in expenses after BlackBerry lost an arbitration of a dispute with Nokia.
But BlackBerry says its adjusted profit, excluding the Nokia payments and other items, was $16 million or three cents per share.
Analysts on average had expected a break-even quarter on an adjusted-per-share basis, according to Thomson Reuters.
BlackBerry’s revenue was also higher than expected at $226 million, but down from $289 million a year ago.
Analysts on average had expected $214.6 million in revenue.
“Our strategy is working and our execution is yielding results,” BlackBerry executive chairman John Chen said in a statement before speaking with analysts.
BlackBerry’s shrinking revenue is mostly due to its exit from the hardware portion of its legacy smartphone business, which has been only partially offset by increased revenue from software, services and licensing revenue.
Revenue from software, services and licensing was $190 million, a record for the company.
Revenue from handheld devices dropped to $9 million, from $62 million, and revenue from system access fees dropped to $27 million from $67 million.