BlackBerry misses Street 1Q Street forecasts
BlackBerry Ltd. reported worse-than-expected first-quarter financial results as phone sales continued their long slide, but software revenue increased as the company turns its focus away from hardware.
The results fell short of Wall Street expectations, with the average estimate of 15 analysts surveyed by Zacks Investment Research expecting a loss of 4 cents per share. Eleven analysts surveyed by Zacks expected $684.5 million in revenue.
The company, once known for its smartphones, has been trying to refocus on software. During the quarter it completed its acquisition of WatchDox, a provider of secure enterprise file-sync-and-share technology. On Tuesday, it also announced a long-term patent cross-licensing deal with Cisco Systems Inc. Terms of that deal were not disclosed.
Software and technology licensing revenue more than doubled during the quarter to $137 million.
U.S.-shares of the Canadian company jumped 54 cents, or 5.7 percent, to $9.69 in premarket trading. BlackBerry shares have declined 16 percent since the beginning of the year.
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