Blackberry Reports Profit

blackberry
Good news amidst dwindling profits for BlackBerry, It has posted better-than-expected quarterly earnings, offering signs its turnaround efforts may be beginning to gain traction.

However, a larger-than-expected drop in revenue gave investors cause for concern.
The stock of the company fell 2.5% to $9.07 in premarket Nasdaq trading.

Waterloo, Ontario-based BlackBerry reported net profit of $28 million, or 5 cents a share, in the fourth quarter ended February 28. That compared with a year-earlier loss of $148 million, or 28 cents a share.

Excluding one-time items, quarterly profit was $20 million, or 4 cents a share. Analysts, on average had expected a loss of 4 cents a share in the period.

Quarterly revenue, however, dipped to $660 million from $793 million, and was well below expectations of $786.4 million.

In a good signal, software revenue rose 20% from a year earlier to $67 million. The revenues are a key metric that analysts are looking at this quarter, given the company’s ongoing transition to a more software-driven revenue stream, away from its more traditional hardware- and services-driven model.

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