BlackBerry Q3 results beat estimates, shares surge

TORONTO: Canada’s BlackBerry Ltd reported third-quarter results that beat analysts’ forecasts, helped by an increase in business software sales and licensing revenue, sending its stock up more than 7% in premarket trading.

The company reported adjusted earnings of 3 US cents a share in the quarter ended Nov 30, better than the average analyst forecast for it to break even, according to Thomson Reuters I/B/E/S.

Quarterly revenue fell 25% from a year earlier to US$226mil, beating the average forecast of US$215.4mil. “It’s pretty impressive, beating on both the top and bottom lines,” said Ali Mogharabi, an analyst at Morningstar. ”The growth specifically in enterprise software is good to see.” The Waterloo, Ontario-based company said enterprise software and services sales jumped 11.5% from a year ago to US$97mil as it received some 3,000 orders in the quarter from customers including Nato, the US government and Deutsche Bank. Revenue from intellectual property and licensing surged 67% to US$50mil. A jump in that category had provided an unexpected boost to company earnings in the second quarter.

Sales in its BlackBerry Technology Solution group – which includes the QNX software used in auto infotainment units and self-driving vehicle systems – were flat at US$43mil.

The company’s US-listed shares were up 7.5% at US$11.69 in pre-market trading.