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BlackBerry posts narrower than expected Q1 loss as smartphone sales improve

Updated Jun 19th, 2014 8:26AM EDT
BlackBerry Earnings Q1 2015

BlackBerry on Thursday morning reported earnings that beat the Street’s expectations by a significant margin, suggesting that the company’s cost-cutting measures are paying off more quickly than analysts expected. For the fiscal first quarter ended in May, BlackBerry reported a loss of $0.11 per share versus the consensus estimate of a $0.25 loss per share. The company’s $966 million in Q1 revenue missed the $976 million analysts were looking for, but smartphone shipments improved to 1.6 million units from 1.3 million in the year-ago quarter. Including non-cash and one-time items, BlackBerry actually managed a small profit of $23 million in the quarter.

BlackBerry’s cash and cash equivalents totalled $3.1 billion in Q1, up sequentially from $2.7 billion.

“Our performance in fiscal Q1 demonstrates that we are firmly on track to achieve important milestones, including our financial objectives and delivering a strong product portfolio,” said CEO John Chen. “Over the past six months, we have focused on improving efficiency in all aspects of our operations to drive cost reductions and margin improvement. Looking forward, we are focusing on our growth plan to enable our return to profitability.”

BlackBerry said that approximately 2.6 million BlackBerry smartphones were sold through to end users in the fiscal first quarter.

Shares of BlackBerry stock were up 10% in pre-market trading after initially dipping 2% following the company’s report.

Zach Epstein
Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.

His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.