BlackBerry Ltd. (NASDAQ: BBRY) reported its fiscal third-quarter financial results before the markets opened on Tuesday. The company said that it had a net loss of $0.02 per share and $301 million in revenues. The consensus estimates had called for a net loss of $0.01 per share and $331.92 million in revenue. The same period from last year reportedly had a net loss of $0.03 per share and $548 million in revenue.
The company announced on Monday that it plans to invest roughly $76 million to further develop software related to the operation of autonomous cars. BlackBerry intends to put a facility in Ottawa, Canada.
As the number of mobile-connected devices continues to grow, BlackBerry is expecting to grow demand as well, with a focus on security and embedded software. Recent agreements the company has made with Ford and TCL are positive points as the company moves ahead.
Management reiterated that it remains on track to deliver 30% growth in the company total software and services revenues for the full fiscal year. Accordingly, BlackBerry now expects to see profitability for this fiscal year up from the previous range of a breakeven to a five cent per share loss.
John Chen, executive chairman and CEO of BlackBerry, commented:
BlackBerry is now a software company and the market leader in mobile security. We achieved significant milestones in Q3, delivering the highest gross margin in the company’s history for the second consecutive quarter and continuing to transform our infrastructure and operations to support an enterprise software business. These accomplishments drove operating profitability in all business segments and overall positive non-GAAP EPS.
On the books, BlackBerry’s cash, cash equivalents and short-term and long-term investments totaled roughly $1.6 billion at the end of the quarter.
Shares of BlackBerry were trading up about 4% at $8.00 early Tuesday, with a consensus analyst price target of $7.74 and a 52-week trading range of $6.23 to $9.46.
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