BlackBerry's Stock Surges After Upbeat Results And Outlook, License Agreement
Shares of BlackBerry Ltd. surged 6.6% in premarket trade Wednesday, after the smartphone maker surprisingly reported a breakeven quarter and raised its full-year outlook. The company reported a net loss of $372 million, or 71 cents a share, for the fiscal second quarter to Aug. 31, compared with a profit of $51 million, or a per-share loss of 24 cents, in the same period a year ago. Excluding non-recurring items, adjusted per-share earnings were breakeven, compared with the FactSet consensus for a loss of 5 cents per share. Revenue dropped to $334 million from $490 million, below the FactSet consensus of $392 million. The company said it now expects full-year adjusted per-share earnings of breakeven to a loss of 5 cents, compared with the FactSet consensus for a per-share loss of 16 cents. "We are reaching an inflection point with our strategy," said Chief Executive John Chen. "Our financial foundation is strong, and our pivot to software is taking hold." Separately, BlackBerry said Chief Financial Officer James Yersh is leaving the company for personal reasons, and named Steven Capelli as his replacement. Capelli was previously president of worldwide field operations at Sybase. The company also announced an agreement to license its software and services to PT BB Merah Putih for production of handsets in Indonesia. The stock had dropped 15% year to date through Tuesday, while the S&P 500 had gained 5.7%.
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