BlackBerry tops estimates with its Q3 earnings report; shares soar
Including the launch of the company's first Android phone during the period, handset sales totaled 700,000 units for the quarter. Numbers for the BlackBerry Priv slider were not broken out separately. That sales figure was lower than some Wall Streeters expected, and was down sequentially from the second quarter which was prior to the Priv's release. Hardware sales came to $222.8 million, down year-over-year, but up from the $201 million tallied during Q2.
Chen told investors and analysts that his first priority is breaking even on phone sales. He told analysts that this is coming soon. "Maybe next quarter, maybe a quarter later, but we’re in that ballpark now," said the executive. He added that there is a good chance that device sales start making money and that the company decides to keep the unit. During the same conference call, Chief Financial Officer James Yersh said that BlackBerry needs to sell 5 million handsets a year to make the business worth keeping.
Where BlackBerry showed a major improvement was in software and services. Revenue for that group amounted to $162 million for the three months, up 183% from last year, and 119% from the second quarter. Acquisitions helped in this category, especially the purchase of Good Technologies.
As usual, BlackBerry continued to have plenty of cash and easily converted investments socked away for a rainy day, with $2.3 billion on the books. However, that was down from the $2.89 billion it held as the 2014 fiscal year came to an end.
Investors loved the report. Shares of BlackBerry are up more than 10% on Friday to $8.64.
source: FinancialPost, 24/7WallStreet