This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

BlackBerry Reports Surprise Profit as Turnaround Continues (Update 2)

Updated from 8:04 a.m. EDT to provide commentary from the conference call in the third paragraph.

NEW YORK ( TheStreet) -- BlackBerry (BBRY - Get Report) reported a surprise fourth-quarter profit and said it expects to break even next quarter, as the company continues to cut costs and implement its turnaround strategy.

BlackBerry earned 22 cents a share on $2.7 billion in revenue. Analysts polled by Thomson Reuters expected BlackBerry to post a loss of 29 cents a share on $2.84 billion in revenue. Analysts surveyed by Estimize were looking for a loss of 29 cents a share on sales of $2.85 billion.

About 61% of the $2.7 billion in sales came from hardware, while 36% stemmed from services, and 3% came from software and other revenue. Helping the earnings were improved gross margins, which rose to 40%, as average higher selling prices and hardware margins improved during the quarter. That rose sharply from the third quarter, when gross margins were 30.4%.

The Waterloo, Ontario-based company said it shipped about 6 million BlackBerry smartphones, including 1 million BlackBerry 10 smartphones and approximately 370,000 BlackBerry PlayBook tablets. Approximately 55% of the BlackBerry 10 users came from other platforms, CEO Thorsten Heins noted on the conference call. The company ended the quarter with a subscriber base of 76 million, down from 79 million in the third quarter.

On the conference call, Heins talked about expanding the BlackBerry 10 operating system into other platforms, but did not specify which ones.

For the first quarter, BlackBerry noted it will increase its marketing spending to support BlackBerry 10 by 50%. Despite the added expense, BlackBerry expects it will report break-even financial results in the first quarter, as margins improve and its cost structure continues lower. Analysts polled by Thomson Reuters are looking for a loss of 10 cents a share on $3.28 billion in revenue.

BlackBerry also announced that Mike Lazaridis, having fulfilled the commitment he made to the board in January 2012, decided to retire as vice chair and a director of the company.

While initial reports of Z10 sales have been mixed, with strong sales in Europe and Canada, but mixed in the U.S., Heins noted that more than 40 carriers are currently testing the Q10 QWERTY phone. BlackBerry has a strong QWERTY subscriber base, and "that will go strongly into that BlackBerry base," Heins said.

Shares of BlackBerry are trading higher in pre-market, up 1.26% to $14.75.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BBRY $10.96 0.00%
AAPL $129.36 0.00%
FB $79.60 0.00%
GOOG $573.64 0.00%
TSLA $199.56 0.00%

Markets

DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs