BlackBerry is on the rise as the company announced its fiscal second-quarter 2018 earnings and beat expectations.
Once widely known as a device manufacturer, BlackBerry’s focus is now on the software and services space and leading with its “BlackBerry Secure” platform. Q2 2018 revenues for the Waterloo-based company dropped to $249 million USD from $352 million the same period last year. However, this is a slight increase from Q1 2018 results. For the three months ending August 31, 2017, BlackBerry recorded a net income of $19 million.
BlackBerry CEO John Chen said, “I am pleased with our strong execution in Q2. We achieved historical highs in total software and services revenue and gross margin, as well as the highest non-GAAP operating margin in over five years, reflecting our complete transformation to a software company.”
BlackBerry did note that it is still riding high from the $940 million USD arbitration case it won against Qualcomm. Total cash balance at the end of the fiscal second quarter is now $2.5 billion, which BlackBerry says it may use to acquire companies in the IoT, automotive or software industries.
There is no mention of how its handset business is doing since retreating from the game and licensing its brand, with the most notable Android-powered smartphone being the TCL-made KEYone. However, it seems that BlackBerry is still earning some revenues from this side of the business at it reported $16 million USD in revenues. In addition, under “Licensing, IP,” BlackBerry earned a total of $56 million in the quarter.
“Our position as a market leader in security continues to strengthen… Based on our progress thus far in FY18, we are on track to achieve software and services revenue growth in the range of 10 percent to 15 percent and profitability for the full year,” said Chen.
Source: BlackBerry
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