Software developer BlackBerry Ltd. (TSX:BB, Financial) (BB, Financial) reported better-than-expected first-quarter 2019 earnings before the opening bell on Friday.
The Canadian company posted a net loss of $60 million, or 11 cents per share, for the quarter. This was down significantly from the year-ago quarter, when it posted a profit of $671 million, or $1.23 per share, as a result of a one-time arbitration payment from Qualcomm Inc. (QCOM, Financial).
Adjusted earnings per share were 3 cents, topping Thomson Reuters’ expectations that it would break even.
While the company’s total quarterly revenue declined 9.4% from to prior-year quarter to $213 million, it still beat estimates of $208 million.
Following the announcement, BlackBerry’s U.S.-listed shares rose 2.6% in premarket trading before reversing downward.
BlackBerry, which once produced the dominate smartphone on the market before being edged out by Apple’s (AAPL, Financial) iPhone and Android devices, has had to shift gears to developing enterprise software for corporations and government agencies in order to stay afloat. During the first quarter, it saw sales from its enterprise software and services business grow 18% to $189 million.
Another area the company has focused on recently is creating software based on its QNX platform, which is an operating system, for use in cars. Earlier this month, it announced the technology has been incorporated into more than 120 million vehicles, a feat Executive Chairman and CEO John Chen made sure to highlight in the earnings release.
“I am pleased that BlackBerry QNX software is now embedded in over 120 million automobiles worldwide, doubling the install base in the last three years,” he said. “We are very excited about the opportunities ahead of us in automobiles and in other EoT verticals.”
For fiscal 2019, BlackBerry is guiding for total software and services revenue growth of 8% to 10% year over year and double-digit billings growth.
With a market cap of $5.77 billion, BlackBerry’s shares were trading more than 9% lower on Friday morning at $10.58. GuruFocus estimates the stock has fallen approximately 11% year to date.
Disclosure: No positions.
