BlackBerry posts weaker-than-expected outcomes, pledges income acquire
(Reuters) – – Smartphone maker BlackBerry Ltd reported weaker-than-expected quarterly outcomes on Friday however forecast larger income and stated it’d change its working system with Google Inc’s Android platform.
The Waterloo, Ontario-based firm, which is pursuing a turnaround plan based mostly on promoting extra software program, stated it anticipated modest income development within the remaining two quarters of this fiscal yr, after 9 quarters of falling gross sales, and a return to profitability within the fourth quarter.
It additionally confirmed extensively anticipated plans to launch an Android smartphone later this yr. This marked a shift away from its personal BlackBerry 10 platform that didn’t regain market share ceded to Apple Inc’s iPhone and a slew of Android-powered gadgets.
“This cellphone is the reply for former BlackBerry customers who miss the bodily keyboard but additionally want apps,” Chief Government Officer John Chen stated on a convention name.
The corporate might jettison its personal platform if the Android system beneficial properties acceptance with its core base of presidency and monetary trade shoppers, Chen added.
BlackBerry shares, which fell as a lot as eight % earlier than the morning bell, have been down 2.7 % at $6.84 in morning Nasdaq buying and selling.
“What they stated on the decision, talking extra in regards to the outlook versus the outcomes itself, painted a much less bleak image,” stated Cormark analyst Richard Tse.
EYE ON SOFTWARE SALES
BlackBerry, whose smartphone market share has dwindled, stated earlier this month that it might purchase rival cellular software program maker Good Know-how for $425 million. It expects the deal to assist win new shoppers for its providers enterprise, a precedence because it shifts its focus to system administration software program for enterprise clients.
Nonetheless, analysts famous income development from the software program arm was weak.
“I am joyful to provide them credit score for patent licensing, however that is not what we’re speaking about by way of high-value recurring income,” stated CIBC analyst Todd Coupland.
Excluding restructuring expenses, a non-cash credit score tied to the worth of debentures and different one-time objects, the corporate reported a lack of 13 cents a share for the second quarter ended on Aug. 29.
On that foundation, analysts polled by Thomson Reuters I/B/E/S had, on common, forecast a lack of 9 cents.
Income fell 46.5 % to $490 million, effectively under the analysts’ common estimate of $610.6 million.
Web earnings was $51 million, in contrast with $68 million within the prior quarter and a year-earlier lack of $207 million.
(With further reporting by Allison Martell and Alastair Sharp; Modifying by Bernadette Baum and Lisa Von Ahn)