BlackBerry posts Q1 loss but software revenues rocket

0
546

Deficit is an improvement from last year with software revenues up by 150 per cent, but smartphone sales continue to fall

BlackBerry has posted a loss of $28 million in Q1 but saw software revenues more than double from a year ago.

Reporting its financial results for the three months ending May 30, the deficit compares to a $20 million profit from the previous quarter and $60 million loss from last year.

BlackBerry said it sold 1.1 million smartphones in the quarter with an ASP of $240. In the previous quarter, it sold 1.3 million smartphones with an ASP of $211. Its most recent smartphone release was the BlackBerry Leap in April, with availability in 22 markets.

Revenue remained relatively stable at $658 million on a sequential basis but was down by around a third from $966 million in the same quarter last year.

However software revenues, which made up 21 per cent of this quarter’s figure, grew 150 per cent year-on-year to $137 million.

The remainder was 40 per cent for hardware and 38 per cent for services, although BlackBerry didn’t specify figures for these.

During the quarter, the manufacturer said it had 2,600 customer wins, with almost half (45 per cent) of the licenses associated with these deals being cross platform.

BlackBerry executive chairman and CEO John Chen (pictured) said he was pleased with the “strong performance” of its software and technology business, labelling it “key” to BlackBerry’s growth.

“Our financials reflect increased investments to sales and customer support for our software business,” he continued.

“In addition, we are taking steps to make the handset business profitable. We believe these actions are prudent and necessary to grow the business and we believe the remaining milestones in our strategic plan are achievable.”

NO COMMENTS

LEAVE A REPLY