With emphasis on software and services, BlackBerry reports its highest gross margins ever in Q3
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.
Investors are happy with the report. On Wall Street, BlackBerry's shares are up 25 cents or 3.2% to $7.96.