News: Company pins hopes on software to drive growth.
Canadian mobile phone company Blackberry posted a profit of $14m excluding one off charges for restructuring costs and a write-down of some of its assets.
The smartphone maker’s losses hit $670m in the first quarter compared, to $238m in the previous quarter.
The company reported a revenue of $400m, with the decline in revenue largely due by a continued fall in its handset sales.
The firm sold 500,000 phones in the quarter compared to 600,000 in the previous quarter.
Software and services accounted for 39% of its total revenue and handsets contributed 36%.
Excluding its licensing business, revenue from software and services rose 131% in the three months compared to year-ago quarter.
Nearly 74% of the first quarter software revenue was recurring.
BlackBerry executive chairman and CEO John Chen said: "Excluding IP licensing, we have more than doubled our software revenue on a year-over-year basis for the second consecutive quarter, driven by our EMM, secure messaging and QNX embedded software businesses.
"In our Mobility Solutions business, our objective is to achieve operating profitability in the short term.
"Our current plan calls for continued investments to expand our addressable markets and drive sustainable profitability and revenue growth. For the full fiscal year, we are on track to deliver 30 percent revenue growth in software and services."
During the quarter, the company unveiled a new end-to-end asset tracking system based on the company’s IoT platform, for trucking companies and private fleet operators.
After pumping in huge money to acquire big companies over the past one year, the company now plans to halt its acquisition exercise. As of 31 May, the company held cash reserves of $2.5bn.
In November 2015, it acquired Good Technology, its rival in the enterprise mobility management (EMM) space, for $425m.
According to reports, the company was looking to launch two mid-range Android devices this year, with one device featuring a physical keyboard and the other a full touch-screen.