BlackBerry Tops Expectations in Fiscal First Quarter as Software and Services Revenue Surges

10:17 AM, Jun 26, 2019 — BlackBerry (BB) reported fiscal 2020 first-quarter results that were ahead of analysts’ expectations as revenue from its software and services business surged and the company said the integration of its acquisition of Cylance is ahead of schedule.

Revenue climbed 23% year-on-year to $267 million on an adjusted basis, topping the consensus on Capital IQ for $264.6 million. The Waterloo, Canada-based company reported adjusted earnings per share of a cent, better than the consensus for none. BlackBerry reported adjusted earnings per share of $0.03 in the first quarter of fiscal 2019.

“We are off to a good start to achieve our financial outlook for fiscal 2020,” said John Chen, BlackBerry’s chief executive. “We are ahead of our schedule in our Cylance integration, while investing in the right opportunities to drive long-term growth and profitability for BlackBerry.”

BlackBerry has been pivoting in its focus toward software and security offerings after it acquired Irvine, Calif.-based Cylance, an artificial intelligence and cybersecurity firm in a deal that was completed in February.

Total adjusted software and services revenue rose 35% to $260 million in the three months ending May 31, according to the company that was once better known for its smartphones.

Cylance revenue was $51 million on an adjusted basis, BlackBerry said. Internet-of-things revenue rose to $137 million from $130 million a year earlier, while licensing increased to $72 million from $63 million.

BlackBerry affirmed its fiscal 2020 outlook for year-on-year revenue growth between 23% and 27% and a double-digit percentage increase in billings. Cylance’s revenue is set to rise 25% to 30%, BlackBerry said. The firm also expects adjusted profitability for the full year.

Companies: BlackBerry Limited
Price: 7.59 Price Change: -0.70 Percent Change: -8.44

Live Briefs Pro Global Markets