Excluding charges, BlackBerry reported a fiscal first-quarter loss of $28 million, or 5 cents a share, worse than analysts' expectations for a loss of 3 cents a share, according to Thomson Reuters.
It also reported revenue of $658 million, slightly lower than a year earlier and below estimates of about $679 million in revenue. As the company's smartphone sales fell, software sales improved, rising to $137 million, a 150% year-over-year increase.
BlackBerry Executive Chairman and Chief Executive John Chen zeroed in on this area of the business.
"I am pleased with the strong performance of our software and technology business. This is key to BlackBerry's future growth," Chen said in a statement.
"Our financials reflect increased investments to sales and customer support for our software business. In addition, we are taking steps to make the handset business profitable," Chen said.
"We believe these actions are prudent and necessary to grow the business, and we believe the remaining milestones in our strategic plan are achievable," he said.
During the quarter, BlackBerry said that it completed its acquisition of WatchDox, which provides secure enterprise file-sync-and-share solutions. It also entered into agreements with Compal Electronics and Wistron.
These agreements will reduce the time it takes to bring new devices to market and streamline the supply chain, among other benefits, according to BlackBerry.