On an unadjusted basis, the net loss thinned to $0.06 per share from $0.10 per share a year earlier as lower costs lifted gross margin to a record 76%. Despite a record growth in software and services revenue, overall revenues dropped about 19% annually to $233 million, but the rate of decline was smaller than expected.
Following the announcement, Blackberry stock gained more than 6% in early trading on Wednesday
During the three-month period, the company launched BlackBerry Jarvis, a binary static analysis SaaS for automakers. In a clear sign of returning to profitability, Blackberry recently revamped its Radar partnership with Fleet Complete and forged a new tie-up with Pana-Pacific to extend the availability of Radar, in addition to a number of other partnerships and product announcements.
The company had changed its focus on building itself as a software service company ever since the Blackberry smartphone lost its clientele to Apple’s (AAPL) iPhone and the new-generation Android handsets.
Encouraged by the positive results, the management targets a double-figure growth for software and services revenues in fiscal 2019 and expects the rebound in earnings and cash flow to continue this year, on an adjusted basis.
