BlackBerry Ltd posted quarterly revenue that missed analysts’ forecasts due to an unexpected sales decline, pushing shares down as much as 12.21 percent, which would be their biggest one-day drop in more than two years.
The company reported that software and professional sales fell 4.7 percent to $101 million during the first quarter.
BlackBerry earned an adjusted 2 cents per share.The company swung to a net profit of $671 million, or $1.23 a share, in the quarter to May 31, from a loss of $670 million, of $1.28 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 2 cents.Revenue fell to $235 million from $400 million, while adjusted revenue of $244. Enterprise software and services revenue declined to $101 million from $106 million
The light sales were due, in part, to a drop in its high-margin software and professional services sales. Chen said the company’s financial results were complicated by transactions that have taken place over the past few years.
“A year ago, we had a revenue from the good technology acquisitions that came off the balance sheets. So if you take that off … the year-over-year growth of our enterprise business was actually 12 percent,” Chen said. “So it’s not as people think — that it’s not growing at all.”
BlackBerry was also boosted by a $940 million windfall from a dispute with Qualcomm.
“The relationship is actually quite good. We had a disagreement [with Qualcomm] over the licensing and the contracts,” Chen said. “Both sides had agreed to be friendly, whatever the outcome would be. We happened to come out, in my mind, the right way. But we are also working a lot on technology … We are working together, we enjoy working with each other and we respect each other as companies.”
BlackBerry shares are still up nearly 41 percent over the past year.