BlackBerry misses on revenue in Q3, but still shows signs of turnaround

SHAFAQNA –  BlackBerry’s revenue for the third quarter came in below analyst estimates, but even so, it continued to show signs of turning around the business. The phone maker reported revenue of $793 million in the three-month period ending Nov. 29. That’s down from about $1.1 billion in the same quarter a year earlier, and below Wall Street estimates for revenue of $931 million, according to analysts surveyed by Thomson Reuters.

BlackBerry also reported a net loss of $148 million for the quarter, which might sound bad until you remember that the company posted a whopping $4.4 billion loss in the same quarter a year earlier. The company also touted that it finally returned to being cash flow positive in the third quarter

“We achieved a key milestone in our eight quarter plan with positive cash flow. We also attained another important milestone in the release of our new enterprise software products and devices,” John Chen, BlackBerry’s executive chairman and CEO, said in a statement. “Our focus now turns to expanding our distribution and driving revenue growth.”

Shortly before BlackBerry reported its dismal quarter a year ago, the company replaced then-CEO Thorsten Heins with Chen and shifted its strategy to shift its focus back to business customers rather than competing against the likes of Apple and Samsung in the consumer market. As part of that approach, BlackBerry recently announced a new smartphone that is a return to the BlackBerry of old.

BlackBerry revealed in its earnings report that it sold 1.9 million smartphones to customers during the third quarter, compared to 4.3 million a year earlier.

The company’s stock dipped more than 8% in pre-market trading following the earnings report.

BBRY Chart

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