BlackBerry's Bet on Software Over Handsets Begins to Pay Off
- Adjusted profit margins approach 70%, their highest ever
- Company projects 30% software revenue growth in fiscal 2017
BlackBerry CEO Chen: Can Do Better Than 70% Profit Margin
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BlackBerry Ltd. boosted its fiscal 2017 earnings outlook and posted a profit in the third quarter, showing the company’s bet on moving more into software and completely away from handsets is paying off.
Fiscal third-quarter earnings per share, excluding some items, were 2 cents, compared with analysts’ average estimate of a loss of 1 cent. BlackBerry said it now expects to post a profit for the full year, up from a prior range of break even to a five-cent loss, according to a statement Tuesday. Shares rose as much as 4.4 percent, the biggest intraday gain in two months. They were up 1.2 percent to $7.80 at 1:26 p.m. in New York.