BlackBerry quarterly results show some positive developments

BlackBerry announced fiscal Q116 results for the first three months ended May 30, 2015 that showed its shift to focus on software is starting to take effect, with John Chen, the company’s CEO, describing this business as “key to BlackBerry’s future growth”.

Software and technology licensing revenue of US$137 million was up 150 per cent year-on-year, making up 21 per cent of the company’s total sales – hardware accounted for 40 per cent and services were 38 per cent.

BlackBerry made no reference to recent speculation that the company is set to support Android OS in its device portfolio.

The company trumpeted 2,600 enterprise customer wins in the quarter. Revenue fell to US$658 million from US$966 million a year ago, while Non-GAAP loss for the period amounted to (US$28) million, while GAAP basic net income for the quarter was US$68 million, compared to US$23 million in the prior-year period. Operating income was US$89 million, up from US$20 million.

The company recognised hardware revenue on approximately 1.1 million smartphones, with an ASP of US$240. This compares with 1.3 million in the prior sequential quarter, meaning increased availability of BlackBerry Classic is having little positive effect in terms of volume, although ASP has increased from US$211.

Also announced today was a “broad patent cross-licensing agreement” with Cisco, covering the two companies’ respective products and technologies. While specifics were not revealed, BlackBerry said that it will “receive a licence fee from Cisco”.