BlackBerry Posts Profit in Transition Quarter

BlackBerry said profit in the fourth fiscal quarter ended March 2 was $98 million, compared with a loss of $125 million in the same period a year earlier.

"We have implemented numerous changes at BlackBerry over the past year and those changes have resulted in the company returning to profitability in the fourth quarter," said president and chief executive Thorsten Heins.

App developers interested

Heins told a conference call that BlackBerry was getting strong interest from app developers, with more than 100,000 now available.

"Early indicators are that BlackBerry 10 users are hungry for applications, and we're getting more commitments from global app developers daily as our launch continues its rollout."

In the past quarter, revenue slid to $2.7 billion from $4.2 billion a year earlier and was below analyst estimates of $2.84 billion.

But the profit excluding special items of 22 cents a share was a surprise, as analysts had expected a loss of 29 cents a share.

Mark Sue at RBC Capital Markets said the results were much better than expected, with stronger-than-anticipated shipments of the new phones.

Peter Misek at Jefferies was upbeat, saying BlackBerry is working to reduce reliance on phone sales and offer its secure software to rivals.

"While most near-term focus continues to be on the phone, we believe BlackBerry's mobile device management opportunity is underappreciated," he said.

This software "will gain traction throughout this year and see a significant ramp in revenues next year," Misek said in a note to clients.

But Paul Ausick at 24/7 Wall Street said the profits masked some bleak figures on lower-than-expected shipments and the loss of subscribers.

"Not a very auspicious start for the renamed company with the brand new smartphone," he said.

Copyright Agence France-Presse, 2013

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