Is BlackBerry Losing Profit

The Canadian “tech” company, BlackBerry, is reporting a US$671 million profit for the first quarter of the year. The anticipated revenue was less than expected, missing analyst estimates.

The company’s revenue for the quarter was $235 million US, in comparison with estimates of $264.39 million US, according to Thomson Reuters data.

While first quarter profit was large for the Waterloo, Ont.-based company, it was also for the most part because of a one-time $815 million payment received as a reimbursement from Qualcomm, one of its suppliers,  after a judge ruled in BlackBerry’s favour.

Without that, the company would have posted a profit of just $14 million, on the swing of things basis.

The horrific surprise in sales seemed to have more effect with stock traders than the profit, with BlackBerry shares falling in unlimited trading shortly after the proclamation.

BlackBerry shares were down in the region of 6% at about 7 a.m. ET. They traded at $10.38 US, compared with the previous close on NASDAQ at $11.06 US.

The company’s shares had risen since the commencement of the month in the midst of supposition that BlackBerry could be a takeover target and its stock could rise to a large extent in future.

BlackBerry’s shares rose about 50% from roughly $10 in April to a 52-week high of $15.82 on June 1 at the Toronto Stock Exchange.

The piece of information gathered that the company is still alive, is a bit of a shock to me. On the other hand, I still believe that it is a matter of time before the company sells.

J C Loum


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