BlackBerry Misses Revenue Forecasts

Cybersecurity company says ongoing negotiations to sell portion of patent portfolio affected revenue in fourth quarter.
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BlackBerry Limited  (BB) - Get Report missed analyst fourth-quarter revenue forecasts, as licensing revenues remain in limbo due to ongoing talks to sell part of its patent portfolio, the company said in results posted after the bell Tuesday.

The company said it made 3 cents a share in the latest period, on non-GAAP revenue of $215 million.

In the same period a year ago, the company posted earnings of 9 cents a share on sales of $291 million.

The company had been expected to report net income of $15.6 million, or 3 cents a share, on sales of $244.8 million, based on a FactSet survey of seven analysts.

BlackBerry has been in negotiations to sell a part of its patent portfolio related to mobile devices, messaging and wireless networking. "If the company had not been in negotiations during the quarter, we believe that licensing revenue would have been higher," BlackBerry said in a statement.

"We had a strong year executing our technology roadmap," CEO John Chen said on a call with analysts. Chen offered a GAAP revenue forecast for the full year of $675 million to $715 million, excluding any licensing revenue. He said if no deal is concluded during the year, the company would anticipate licensing revenue of $100 million.

For the year, analysts project revenue of $944.9 million, according to FactSet data. 

The stock has risen 11.4% since the company last reported earnings on Dec. 17. 

In late January, BlackBerry surged to 52-week highs. It, along with GameStop  (GME) - Get Report, AMC Entertainment Holdings  (AMC) - Get Report and other heavily shorted stocks, were targeted by online chat rooms in an attempt to coordinate short squeezes to boost the share prices.  

In February, an analyst at a Canaccord Genuity cut their rating to sell from hold, in the wake of the volatility of the stock.

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

BlackBerry quarterly estimates had risen 2.7 cents a share in the past month.

Shares of BlackBerry fell 79 cents, or 8.5%, to $8.55 in after-hours trading. 

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