BlackBerry reported its fiscal third quarter earnings today, and with the focus on software and services and away from hardware, the company reported a 47% drop in Q3 revenue to $289 million on a year-over-year basis. Software and services was responsible for $160 million of that amount, up 16% from the fiscal second quarter. For the current fiscal year, the company expects top line growth of 30% in the software and services area.For the fiscal third quarter, BlackBerry overall reported a net loss of $117 million, or 22 cents a share. Excluding certain non-recurring items, BlackBerry had a profit of 2 cents a share topping Wall Street's consensus estimate of a 1 cent a share loss. Last year, BlackBerry reported an adjusted loss of 3 cents a share.Today's report included an all time high in gross margins for the company at 66.8%.BlackBerry now expects to report a profit for the current fiscal year, after adjustments. Previously, the company expected to post earnings for the fiscal year in a range between breakeven and a 5 cents a share loss.BlackBerry has completely divorced itself from the competitive hardware business. Just last week, BlackBerry and TCL announced a licensing agreement that will result in TCL designing, manufacturing, promoting, selling and delivering all future BlackBerry handsets.
"We firmly believe that the move to a software business model will be positive for revenue growth going forward, sustainable profitability and overall shareholder value."-John Chen, CEO, BlackBerry
Investors are happy with the report. On Wall Street, BlackBerry's shares are up 25 cents or 3.2% to $7.96.
source: WSJ
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