BlackBerry Ltd. (NASDAQ: BBRY) Friday reported fourth-quarter earnings that beat analysts’ estimate, as its efforts to become a software company finally paid off.
The Canadian firm said on Friday that fiscal fourth-quarter net loss was $47 million, or 10 cents per share, down from $238 million or 45 cents per share a year earlier. Excluding certain items, the company earned 4 cents a share. Analysts polled by Reuters had expected the company to break even.
Revenue was $297 million in the fiscal fourth quarter, beating analysts’ estimate of $289 million.
BlackBerry has been focus on building its software business in the recent years. Last year, the company outsourced its smartphone design, production and sales to other companies, including Indonesia's BB Merah Putih, China's TCL and India-based Optiemus Infracom. Software business now accounts 30 percent of company’s sales. The company’s gross margin jumped to 60.1 percent from 43.3 percent last year. The company now expects to be profitable for its entire fiscal 2018.
"I am pleased to report that our Q4 results came in at or above expectations in all major metrics," said John Chen, Executive Chairman and CEO, BlackBerry. "In the quarter, we continued to grow our mix of software and services revenue across the company. In turn, this allowed us to expand our operating margin and report positive free cash flow. In addition, our balance sheet continues to strengthen and benefit from reduced capital requirements with our focus on software and licensing."
BlackBerry shares jumped 11.87 percent to $7.78 in the early trading.