TORONTO – Global mobile phone manufacturer, BlackBerry Ltd, on Friday reported a small adjustment in its third-quarter profit and returned to positive cash flow position.
The adjustment, which led to temporary respite, however did not last long as its listed shares fell as revenue declined more than expected.
Revenue fell to 793 million dollars (N148.3billion) from 1.19 billion dollars (N222.53billion) recorded a year earlier.
Analysts had earlier expected 931.5 million dollars (N174billion).
BlackBerry’s Nasdaq-listed shares fell 5.6 per cent to 9.50 dollars (N1776.5) in premarket trading.
Cash flow was positive 43 million dollars (N8.04 billion) in the third quarter, while the company had negative cash flow of 36 million (N6.73billion) in the second quarter.
BlackBerry had said it was targeting break-even cash flow by the end of the fiscal year in February 2015.
Colin Gillis, tech analyst at BGC Partners in New York, said BlackBerry Chief Executive Officer John Chen did a good job controlling expenses to boost the company’s cash pile.
“The fact that he over-achieved by turning cash flow positive this quarter, that’s a great milestone,” said Gillis. “It gets easier from here.”
Excluding, a one-time non-cash debenture charge and restructuring charges, the company reported a profit of 1 cent a share.
Analysts polled by Thomson Reuters I/B/E/S expected a loss of 5 cents.
The Waterloo, Ontario-based company reported a net loss of 148 million dollars (N27.68billion), or 28 cents a share, in the quarter ended Nov. 29.
That compared with a year-earlier loss of 4.4 billion dollars (N822.8billion), or 8.37 dollars (N1, 565) a share.
BlackBerry launched its long-awaited Classic Smartphone on Wednesday, hoping to help win back market share and woo customers still using older versions of its physical keyboard devices.
The phone resembles its once wildly popular Bold and Curve handsets. (Reuters/NAN)
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