NEWS

BlackBerry shares rise on surprise quarterly profit despite lower revenues

03/27/2015 07:28 EDT | Updated 05/27/2015 05:59 EDT
BlackBerry surprised with a small quarterly profit on Friday, even as the company saw a large drop-off in the number of actual sales.

The Waterloo, Ont.-based technology company earned $28 million, or five cents per share. Adjusted earnings (which remove non-recurring gains) came to four cents per share.

Analysts were expecting a loss of three cents per share, according to a survey by Zacks Investment Research. In the same period a year ago, the company lost $148 million, or 28 cents a share.

But despite the slight profit, the smartphone and software company saw it's revenues drop 33 per cent  to $660 million. A year ago, the figure was $976 million. Wall Street was looking for $833.1 million this quarter.

Investors focused on the surprise profit however, and shares rose more than five per cent before the opening bell. The company expects to put up operating profits consistently at some point during its next fiscal year.

Beating expectations

BlackBerry has now beat expectations on the profit side for two quarters in a row.

For the year, the company reported that its loss narrowed to $304 million, or 58 cents per share. Revenue was reported as $3.34 billion compared $6.8 billion the year before and $11.1 billion in 2013.

BlackBerry shares have dropped 15 per cent since the beginning of the year. The stock has increased 1.5 per cent in the last 12 months.

"Our focus this past year was on getting our financial house in order while creating a multi-year growth strategy and investing in our product portfolio. We now have a very good handle on our margins, and our product roadmaps have been well received," Executive Chairman and CEO John Chen said in a statement.

"The second half of our turnaround focuses on stabilization of revenue with sustainable profitability and cash generation."

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