BlackBerry Ltd (BBRY) Misses 3Q Revenue; Stock Down In Premarket

BlackBerry Ltd (BBRY) Misses 3Q Revenue; Stock Down In Premarket, BlackBerry Ltd (NASDAQ:BBRY) has posted mixed results for its 3QFY13 earnings. The company reported earnings of $0.01 per share, where the Street had expected a $0.05 loss per share. However, Blackberry reported revenue of $793 million for the quarter. This showed a revenue miss of $138.53 million, something that investors are likely to view unfavorably.

46% of the revenue was generated by their hardware business, with revenue down 12%, at $365 million. The company sold 1.9 units of their smartphones in the quarter. Blackberry did not release any details regarding the passport device, which is targeted at professionals. 46% of the revenue generated was from Blackberry’s services segment, and the remaining 8% of revenue was generated from software and other segments of Blackberry’s business.

In the earnings press release, the company has highlighted that their cash and investment balance was $3.1 billion at the end of the third quarter on November 29, 2014. This was helped significantly by a positive cash flow of $43 million in the third quarter, excluding net outlays of $31 million for acquisition, as compared to a cash outflow of $36 million in 2QFY15. The company had $1.6 billion in commitments, which include purchase obligations by the end of the quarter. Purchase orders worth $565 from contracted manufacturers were recognized on the earnings, compared to $344 million in 2Q.

Blackberry’s earnings are also sequentially up from last quarter. The company reported $0.01 earnings per share this quarter, up from the loss per share of $0.02 in the last quarter. The company’s latest two quarters have seen positive hardware gross margins, which have driven Blackberry’s gross margin to 52%. Blackberry’s operating profit was up 700% from $2 million in the second quarter to $16 million in the third quarter.