BlackBerry swings to $671M quarterly profit despite lower sales
BlackBerry is reporting a $671 million US profit for the first quarter but its revenue was lower than expected, missing analyst estimates.
The company says its revenue for the quarter was $235 million US — compared with estimates of $264.39 million US, according to Thomson Reuters data.
While first-quarter profit was large for the Waterloo, Ont.-based company, it was also mostly because of a one-time $815 million payment received as a rebate from Qualcomm — one of its suppliers — after an arbitrator ruled in BlackBerry's favour.
Without that, the company would have posted a profit of just $14 million, on an adjusted basis.
The negative surprise in sales seemed to have more impact with stock traders than the profit, with BlackBerry shares falling in extended trading shortly after the announcement.
BlackBerry shares were down roughly six per cent at about 7 a.m. ET. They traded at $10.38 US, compared with the previous close on Nasdaq at $11.06 US.
The company's shares had risen since the beginning of the month amid speculation that BlackBerry could be a takeover target and its stock could rise substantially in future.
BlackBerry's shares rose about 50 per cent from roughly $10 in April to a 52-week high of $15.82 on June 1 at the Toronto Stock Exchange.