Canadian-based smartphone manufacturer, BlackBerry (NASDAQ: BBRY), reported first-quarter revenue of $658 million with a $28 million loss after adjustments.
Blackberry disclosed before adjustments, a net income of $68 million or $0.13 per share. From the beginning of the year, the company's share price declined about 11 percent on the TSX. However, the stock was upheld after release of the quarterly report. The prior year, the company reported a first quarter net income of $23 million or $0.04 per share.
The company claimed to have sold only 1.1 million phones in the first quarter; a drop of 500,000 compared to the last quarter.
Chief Executive John Chen acknowledges that the sale of devices have fallen but intends to focus on their software and technology business; calling it the key to the company's future growth. In the previous quarter, the software and service business of Blackberry rose 150% to $137 million. Although the sales of their recent products – the Passport and the Classic – did not exponentially rise as they hoped, the overall software business unexpectedly surged in the current quarter.
According to Monday’s close on the NASDAQ, shares were up to US$9.20, compared to before the North American stock markets opened which were trading at US$9.98.
Blackberry Limited intends to pursue sustainable non-GAAP profitability during fiscal 2016. The company is expected to result positive free cash flow.