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The stock seesawed in premarket trading,
reflecting the mixed investor sentiment. The stock initially
rose sharply, then fell into negative territory. It was up 4.8
percent at $9.75 at 8 a.m. EDT (1200 GMT) on Nasdaq.
Waterloo, Ontario-based BlackBerry reported net profit of $28
million, or 5 cents a share, in the fourth quarter ended Feb.
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, expected a loss of 4 cents
a share, according to Thomson Reuters I/B/E/S.
Quarterly revenue, however, slid to $660 million from $793
million, and was well below Wall Street expectations of $786.4
million.
"BlackBerry continues to do a good job controlling operating
expenses and eliminating its cash burn during its business
transition, but the total revenue was still a big miss and we
still have concerns about the demand side of the equation," said
Morningstar analyst Brian Colello.
Software revenue rose 20 percent from a year earlier to $67
million. Analysts view this an important metric, given the
ongoing transition to a more software-driven revenue stream,
from its more traditional hardware- and services-driven model.
"It's a good start, they are looking for a more meaningful ramp
in the middle of the fiscal 2016, but certainly it's a good
start," Colello said. "It's an early good sign."
The company reported positive cash flow of $76 million in the
quarter, compared with a cash burn of $784 million a year ago.
Its cash position rose to $3.27 billion in the fourth quarter,
from $3.1 billion in the third quarter.
(With additional reporting by Allison Martell; Editing by
Jeffrey Benkoe)
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