The Canadian-based multinational company, BlackBerry Ltd has got unexpected and much stronger quarterly results than expected and increased its fiscal year revenue generated after sales at its recent software business hit a record by sending its shares up more than 7 percent in Thursday premarket trading, it’s a big news for company who stopped manufacturing the iconic BlackBerry smartphone to focus on software, last year. A profit of 5 cents a share before special items for the second quarter ended on Aug. 31.
Previously, revenue fell to Rs. 1,630 crores ($249 million) from Rs. 2,304 crores ($352 million) due to some errors and managerial conflicts between the departments of the company. According to Thomson Reuters I/B/E/S, Company Analysts stated an average expected BlackBerry to break even on revenue of Rs. 1,440 crores ($220 million), excluding all the items.
Excluding all kinds of restructuring costs and other useless items, the company said it expected fiscal year revenue of $920 million to $950 million and positive earnings per share. The Ontario-based company, The Waterloo is focusing to hold 10 percent to 15 percent software revenue growth for its fiscal year, which runs until the end of February.
BlackBerry stated that “the software and services revenue reached a record $196 million in the quarter, more than the estimates of $174 million from RBC analyst Paul Trieber and $176.2 million from Macquarie’s Gus Papageorgiou.”
Net income for the quarter was expected to be at Rs. 124 crores ($19 million) or 4 cents per share.