BlackBerry profit up to USD 21 mln in Q2, revenues slide 13%

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BlackBerry reported a net profit of USD 21 million in its fiscal second quarter for 2019, up from USD 19 million a year earlier, with operating profit coming in at USD 17 million, positive for the tenth consecutive quarter.

The result was mostly driven by lower expenses in the quarter, with selling and marketing costs declining 6 percent while research and development costs fell 15 percent. This helped the company offset lower revenues in enterprise software and services, down 3 percent year on year to EUR 88 million in the 3 months ending 31 August.

Total revenues were down 13 percent year on year to USD 210 million, although adjusted software and services revenue came to USD 193 million, up 4 percent compared to Q2 2018. BlackBerry Technology Solutions revenue lifted to USD 49 million from USD 38 million and Licensing, IP and other revenue stayed flat at USD 56 million while handheld devices revenue plunged to EUR 5 million from EUR 16 million. The total cash balance at the end of the quarter was at USD 2.4 billion, flat year on year, with free cash flow a positive USD 38 million.

In a statement, CEO John Chen said the company exceeded its financial expectations, driven by sequential growth in the BlackBerry Technology Solutions business above all. Looking ahead, BlackBerry reiterated its fiscal 2019 outlook of 8-10 percent growth in software and services revenue plus double-digit growth in company software and services billings.

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