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BlackBerry Shares Gain as First Quarter Results Beat Expectations

BlackBerry shares climb after the company reports a smaller-than-expected loss.

BlackBerry  (BB) - Get BlackBerry Limited Report rose in late trade Thursday after the cybersecurity company and meme stock favorite posted a smaller-than-expected first-quarter loss.

Shares of the Waterloo, Ontario, company were up as much as 1.5% to $12.88 in after-hours trading. The stock is up more than 90% year-to-date.

BlackBerry reported a loss of $62 million, or 11 cents a share. The non-GAAP loss was 5 cents a share. Revenue totaled $174 million.

The FactSet consensus called for a loss of 7 cents a share and sales of $209 million.

Cybersecurity revenue was $107 million, down 10%, while Internet of Things revenue rose 48.3% to $43 million.

BlackBerry shareholders on the company's annual meeting on Wednesday voted to keep Prem Watsa as lead director despite complaints from proxy advisory firm Glass Lewis & Co. and analyst Dorsey Gardner, Bloomberg reported.

Glass Lewis criticized Watsa for a misalignment between executive pay and performance in recent years. 

Gardner cited conflicts of interest between Watsa’s board duties and his position as a shareholder as he controls Fairfax Financial Holdings, BlackBerry’s largest investor.

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BlackBerry has been a meme stock favorite and, earlier this month, shares surged to a nine-year high as Reddit users continued to talk up the company. 

In April, the software provider said Volvo had selected its QNX architecture to power its heavy-duty trucks, buses, and construction equipment.

The company said on Thursday that BlackBerry QNX is now embedded in more than 195 million vehicles, up from over 175 million vehicles last year.

In March, BlackBerry missed Wall Street's fourth-quarter revenue forecasts.

In January, BlackBerry settled its lawsuit with Facebook  (FB) - Get Facebook, Inc. Class A Report, sold its patents to Huawei, and signed a deal with Amazon  (AMZN) - Get, Inc. Report.

BlackBerry had sued Facebook in 2018 in California, charging that the social media network and its WhatsApp and Instagram subsidiaries infringed on BlackBerry messaging app patents.

BlackBerry, which once held a dominant position in cell phones before the ascendancy of Apple's  (AAPL) - Get Apple Inc. (AAPL) Report iPhones, has remade itself as a tech-security and software company in recent years. 

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