BlackBerry Ltd (NASDAQ:BBRY) Beat Estimates Despite A Revenue Drop


BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) posted its second-quarter earnings on Friday, beating the Wall Street’s estimates, which helped the shares to soar in the pre-market trading. However, the Canadian firm was unable to swing to a profit posting a non-GAAP loss of $11 million, or $0.02 per share. Analysts estimated the smartphone maker to post a bigger loss of $0.16 per share on revenue of $950.

More revenues from software and services

A loss of $207 million was posted by BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) on a GAAP basis compared to a loss of $985 million in the year-ago quarter. Revenue for the second-quarter came in at $916 million, which includes 46% for hardware, 46% for services and 8% for software and other revenue. The numbers suggests that the majority of revenues for the company are coming from services and software products and not from smartphones.

In the year ago quarter, the company posted a revenue of $1.57 billion a year ago. Cash in hand for the company remains similar as was in the last quarter, with a marginal increase of $11 million to $3.1 billion.

BlackBerry Messenger witnessed a rise in the number of users. At the end of the second quarter, the service had 91 million monthly active users, which is a gain of 85 million from the last quarter.

BlackBerry CEO confident

“We delivered a solid quarter against our key operational metrics, and we are confident that we will achieve breakeven cash flow by the end of FY15,” said John Chen, Executive Chairman and CEO, BlackBerry.”

Chen again reiterated that the restructuring of workforce is now over, and the company is focusing on the revenue growth “with judicious investments to further our leadership position in enterprise mobility and security, driving us towards non-GAAP profitability during FY16.”

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) reported its second-quarter earnings after the company officially released its Passport (a keyboard smartphone with a 4.5-inch​ screen aimed at corporate users) earlier this week. Even though BlackBerry is based in Canada it reports the earnings in U.S. dollars.