BlackBerry Reports Loss but sees Improvement in Software Sales
The Canadian mobile company announced an adjusted revenue of $424 million, versus expectations for $480.9 million, according to Reuters estimates. The firm was expected to post a loss of 8 cents a share.
BlackBerry also reported a $670 million net loss on a non-adjusted basis, or $1.28 per share over the past three months. Software and licensing revenue was $166 million, which put the firm just under the full-year growth rate it had hoped for.
BlackBerry’s plan to expand its mobile software and services operations helped the smartphone maker’s bottom line in its latest quarter, but sliding handset sales weighed heavily on revenue, which fell 39%.
John Chen was re-elected board chairman for another year on Wednesday.
He still plans to launch two new mid-range phones in the next nine months, one of them as early as July. They’ll be cheaper than the Priv, BlackBerry’s first Android phone, but with the same level of security, he said Thursday.
“If we find that in spite of all the stuff we’re working on, the market tells us that the hardware business by itself has an issue with making money and the volumes are just not there, then we will do the right thing for the shareholders and not just continuously focus on losing money,” Chen said.
That slide is already enough to push the company deep into the red, but the company also abandoned or wrote down the value of goodwill and long-term assets to the tune of $561 million in the quarter, leaving it with a net loss of $670 million, against a net profit of $68 million a year earlier.
Software tools are more profitable than handsets for BlackBerry and fit with the company’s expectations that it will see increased demand as wireless-network use moves beyond smartphones and laptops to include a range of consumer and industrial products.