BlackBerry went into the black in its fiscal first quarter for 2018, with the operating profit lifting to USD 536 million from a loss of 655 million year-on-year, the net profit jumping to USD 671 million from a loss of 670 million, and diluted earnings per share reaching USD 1.23 from a loss of 1.28. Revenues however fell to USD 235 million from 400 million, pulled down by declines at handheld devices and Service Access Fees (SAF). Market watchers expressed disappointment with the weak growth at Enterprise software and services, Bloomberg said. Revenues there advanced to USD 92 million from 82 million year-on-year.
CEO John Chen reiterated the company’s outlook for fiscal 2018, with growth guided at the same level or above the overall market in software and services. Chen said the company also expects to be profitable on an adjusted basis and to generate free cash flow for the full year, excluding the benefits of the Qualcomm arbitration award.
The total cash balance at the end of the quarter increased by USD 855 million to USD 2.6 billion, reflecting free cash flow of USD 860 million. CEO John Chen said the company’s balance sheet continues to strengthen and that it is better positioned now to invest in strategic areas, with the aim of driving long-term sustainable growth, which returning capital to shareholders.
Finally, BlackBerry said it has received permission from the Toronto Stock Exchange (TSX) to buy back up to 31 million shares (6.4% of outstanding float at end May) for cancellation.
