Shares of BlackBerry Ltd (NYSE:BB) swung higher in Thursday’s pre-market session after the Canadian software company posted a profit in its fiscal third quarter, which zipped past analysts’ estimates, thanks to security software sales.
BlackBerry has upended its business model since its smartphone business collapsed due to the dominance of Apple’s iPhones and Android devices in the market. The company now primarily sells enterprise security software and has recently moved into selling programs to the makers of driverless technology, with its QNX software.
For its latest quarter that ended on November 30, BlackBerry reported net income of US$59 million compared with a loss of $275 million in the corresponding year-ago period.
Its adjusted earnings per share of $0.05 exceeded Wall Street’s consensus estimate of $0.02 per share.
Its revenue held steady from the year-ago quarter and clocked in at $226 million, with the bulk of its sales coming from software and services, which brought in $217 million.
Sales from its technology solutions unit, which includes QNX, jumped by 23% to $53 million in the third quarter.
Investors applauded the results, sending BlackBerry shares up by 5.4% to $7.75 before the opening bell.
In a statement, CEO John Chen said he is bullish about BlackBerry’s recent $1.4 billion acquisition of the AI-based cybersecurity firm Cylance as he thinks the deal will boost revenues across various businesses.
“I’m excited about the pending Cylance acquisition as it will extend our strategy with cutting-edge AI cybersecurity capabilities and combined with BlackBerry’s capabilities, present the opportunity for revenue acceleration in our businesses, including UEM, QNX and Spark,” Chen said.
Contact Ellen Kelleher at [email protected]