It wasn't all sour grapes for BlackBerry in the third quarter, as the beleaguered handset maker reported higher revenues and a narrower loss than analysts expected.
The surprisingly positive quarter came as BlackBerry saw success with its increased focus on software, although its latest handset -- Priv, based on the Android operating system -- is apparently doing well for it too. Revenues in North America, which accounts for about half of the total, rose by 29% compared with the same quarter last year, to $275 million.
Overall in the quarter, the company reported revenue of $557 million, up from $548 million a year ago, and handily beating analyst estimates of $489 million. It reported an adjusted loss of $15 million, or three cents a share, whereas analysts surveyed by Thomson Reuters projected it would lose 14 cents per share.
BlackBerry CEO John Chen attributed the results to its strength in software and services, revenues from which rose 18% from the previous year to $162 million. He also said the Priv smartphone has been well received since its November launch and will be made available to more carriers in the coming quarters, although he didn't detail how many have been sold. (See Loss-Making BlackBerry Flags Software Gains.)
BlackBerry also completed its acquisitions of Good Technology and AtHoc in the third quarter, helping strengthen its enterprise play and build up its software story. Chen said the company would generate $500 million from software sales this year to February 2016. (See A Good Deal for BlackBerry?)
BlackBerry was trading up 11.4%, or $0.88, to $8.68 on the NASDAQ at the time of writing.
— Sarah Thomas, , Editorial Operations Director, Light Reading