Topic: How To Invest

The Successful Investor Hotline – Thursday, March 29, 2018

Article Excerpt

BLACKBERRY LTD., $14.81, Toronto symbol BB, reported better-than-expected results this week. In its fiscal 2018 fourth quarter, ended February 28, 2018, the company’s revenue fell 19.5%, to $239 million from $297 million a year earlier (all amounts except share price in U.S. dollars). Even so, that beat the consensus forecast of $216.8 million. The revenue decline is mainly because BlackBerry has outsourced the development of new smartphones to other manufacturers as it focuses on its more-profitable software business. Revenue from BlackBerry’s software and services business (91% of the total) rose 16.5% in the latest quarter. About 70% of the company’s software and services revenue comes from recurring subscriptions. Sale of its phones and other mobile solutions (1%) dropped 96.4%. Due to a drop in the number of older BlackBerry handsets in use, revenue from the fees it charges wireless carriers to access its networks (8%) also fell 61.2%. The company lost $10 million, or $0.02 a share, in the quarter. That’s a big improvement over…