BlackBerry posts loss of 5 cents a share vs. 3 cent loss estimate

July 22 00:54 2015

Despite a quarterly loss, BlackBerry sees traction in its growing software segment as it continues to ink partnerships and improve platforms, its CEO John Chen said Tuesday. BlackBerry on Tuesday reported a quarterly loss that was slightly larger than analysts had forecast, while revenue fell short of expectations. The company posted a first-quarter adjusted loss of 5 cents per share, narrowing from a loss of 11 cents a share in the year-earlier period.The BlackBerry logo is pictured at the BlackBerry campus in Waterloo

Revenue fell to $658 million from $966 million a year ago. Wall Street forecast BlackBerry would deliver a quarterly loss of 3 cents a share on $679 million in revenue, according a consensus estimate from Thomson Reuters. BlackBerry said its turnaround gained traction as sales at its crucial software segment rose in the first quarter and its broader revenue slide began to ease. Investors, though, took a pessimistic outlook, sending BlackBerry shares nearly 4 percent lower into Tuesday afternoon.

Quarterly revenue totaled $658 million in the quarter, slightly lower than the prior period, but software revenue more than doubled from a year ago to $137 million as the company pivots to that segment. Analysts and investors have been concerned about BlackBerry’s ability to grow the software business as it transforms itself from a hardware-focused company to more of a software and services provider.

Chen also touted BlackBerry’s potential to revive its mobile phone business. The segment has suffered amid increased competition from companies including Apple and Samsung. BlackBerry remains “bullish” on phones and sees chances to regain some leverage in the market with new models at the end of this year, Chen noted. Separately, BlackBerry announced a long-term patent cross-licensing agreement with Cisco Systems that covers their respective products and technologies. BlackBerry said that it will receive a license fee from Cisco, but terms of the deal were not disclosed