A big difference from last year where it generated a profit of $68 million in the same period
BlackBerry has announced its Q1 Fiscal 2017 results and things do not seem so green. The company declared a net income loss of $670 million, which is a big difference from last year where it generated a profit of $68 million. The company stated that the net loss was due to factors such as a long lived asset impairment charge, inventory write-down, and more. Further, the report noted that the revenues for the quarter were $424 million, which is a decrease from $658 million it generated last year. However, the company highlighted the launch of BlackBerry Radar, and the fact that about 74% of the first quarter software revenue was recurring. The company also declared a balance of $2.5 billion at the end of the first quarter.
John Chen, Executive Chairman and CEO of BlackBerry stated, “BlackBerry is differentiated by cross-platform market leadership in software, an end-to-end secure mobility platform and a strong financial foundation. Our Q1 results highlight these attributes. Excluding IP licensing, we have more than doubled our software revenue on a year-over-year basis for the second consecutive quarter, driven by our EMM, secure messaging and QNX embedded software businesses. In our Mobility Solutions business, our objective is to achieve operating profitability in the short term.” He added that for the full fiscal year, the company is on track to deliver a 30% revenue growth in software and services and that it expects to generate positive free cash flow for the full year.
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Shrey Pacheco
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