BlackBerry (BBRY) Reports Surprise Profit, Misses on Revenue

Shares of BlackBerry Ltd (BBRY) were trading up +0.50 or +5.38 percent to $9.80 in Friday's premarket after announcing a surprise profit for its fiscal fourth quarter. Nevertheless, revenue failed to meet analyst expectations. BlackBerry Ltd stock closed at $9.30, up +0.02 or +0.22 percent in Thursday's regular trading session.

Waterloo, Ontario based BlackBerry, originally known as Research In Motion Ltd is a Canadian wireless equipment and telecommunications company best known for developing the BlackBerry brand of smartphones and tablets.
The company had been having severe setbacks due in large part to competition from the Apple AAPL iPhone and Samsung SMSN Galaxy smartphones, which have taken a large share of the smartphone market.

BlackBerry Ltd reported GAAP net income of $28 million or $0.05 per share in the company's fourth quarter ended on February 28, 2015, this compares to a loss of $0.08 per share in the fourth quarter last year. On a non-GAAP basis, the company earned $20 million, or $0.04 per share compared to net income of $0.01 per share in the previous quarter. Analysts expected the company to report a loss of -$0.04 per share.

Revenue for the smartphone maker fell to $660 million in the quarter versus $976 million in the same period one year ago, its lowest level in eight years. The figure included a negative impact of $12 million from currency fluctuations. Analysts were expecting the company to earn $786 million in the fourth quarter.

The company recognized hardware revenue on about 1.3 million BlackBerry smartphones, with sales of approximately 1.6 million BlackBerry smartphones sold to end customers with an average sale price of $211 versus an average sale price of $180 in the third quarter. Revenue breakdown for the quarter was about 42 percent for hardware, 47 percent for services and 10 percent for software.

Blackberry Ltd's Executive Chairman and Chief Executive Officer John Chen said in the company's press release that, "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, the second half of our turnaround focuses on stabilization of revenue with sustainable profitability and cash generation.

For the company's full 2015 full year, BlackBerry reported revenue from continuing operations of $3.3 billion. BlackBerry's non-GAAP loss from operations for the year was -$45 million or -$0.09 per share. GAAP net loss came to -$304 million or -$0.58 per share. In the company's outlook, BlackBerry continues to anticipate positive free cash flow and is expanding its distribution capacity. The company expects traction from these efforts to begin manifesting some time in 2016.

BlackBerry stock is trading almost five percent higher in this morning's premarket, indicating investors are optimistic with the company's results. BlackBerry surprised the market in the third quarter after reporting a return to profitability. This morning's results are already benefiting the company's stock price and could propel the stock back to the low teens in the long term.

Other News About BBRY

Blackberry's Future Path Is Focused On Security And Software

Company's latest hardware is being tested by the German government for classified material.

BlackBerry Launches Enhanced SIM-based Licensing Solution for China Mobile Hong Kong Enterprise Customers

China Mobile Hong Kong will offer BlackBerry's Enhanced SIM based Licensing (ESBL) to its enterprise customers.

Other Stocks in the News

Apple Short Interest Falls 10%

Short interest fell to 65.7 million shares as of March 13th.

Amazon in talks to buy online luxury retailer Net-a-Porter: Forbes

Net-a Porter could be valued at as much as $2 billion.

Published on Mar 27, 2015
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

Posted in ...