BlackBerry beats Q2 profit, software revenue at all time high
-BlackBerry posts revenue of US$249 million vs the estimated US$220 million in the second quarter according to Thomson Reuters I/B/E/S.
-The company earned 4 cents per share from the quarter, compared to a loss of 71 cents the prior year.
-BlackBerry CEO John Chen said the company’s non-GAAP operating margin was the highest in more than five years, reflecting its transformation to a software company.
-“Based on our progress thus far in FY18, we are on track to achieve software and services revenue growth in the range of 10 per cent to 15 per cent and profitability for the full year,” he said in a statement.
-BlackBerry said it had US$2.5 billion in cash as of the end of the quarter, and remains on track for a profitable full-year performance.
From the Conference Call:
-Connected car, IoT, and cyber-security all mentioned (long-term investment themes).
-Recognised the leader in mobile security.
-Gross margin at an all time high 76% up from 67% in the last quarter and 62% a year ago.
-Operating income $29 million, operating margin 12% compared to 6% last quarter and 5% a year ago.
-BlackBerry can be seen as a play on autonomous cars and the necessary security that comes along.