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Last Update: 28-Mar-13 07:41 ET
Blackberry shares spike 7% following beat on earnings
BlackBerry (BBRY $15.66 +1.08) reported fourth quarter earnings of $0.22 per share, excluding non-recurring items, $0.53 better than the Capital IQ Consensus Estimate of ($0.31), while revenues fell 35.9% year/year to $2.68 billion versus the $2.84 bln consensus. The revenue breakdown for the quarter was ~61% for hardware, 36% for service and 3% for software and other revenue. During the quarter, BlackBerry shipped ~6 million BlackBerry smartphones (~1 mln BlackBerry 10 units) and ~370,000 BlackBerry PlayBook tablets. Co reports approximately 76 mln subs. Co issues upside guidance for the first quarter, sees EPS approaching breakeven, excluding non-recurring items, versus the ($0.11) consensus. The company will be increasing its marketing investment in the first quarter of fiscal 2014 in support of the global launch of BlackBerry 10. Including the anticipated 50% sequential increase in marketing spending, the Company believes it will approach breakeven financial results in the first quarter based on its lower cost base, more efficient supply chain, and improved hardware margins. "We have implemented numerous changes at BlackBerry over the past year and those changes have resulted in the Company returning to profitability in the fourth quarter." The co also announced that Mike Lazaridis, having fulfilled the commitment he made to the Board in January 2012, has decided to retire as Vice Chair and a Director of the Company.
