BlackBerry (BB 11.64, +1.45, +14.23%) opened higher after beating quarterly expectations.
The Canadian technology company reported above-consensus second quarter earnings of $0.04 per share on revenue, which declined 14.1% year/year to $214 mln but was still ahead of market expectations.
Software and services revenue increased 4% year/year to $193 mln with approximately 81% of revenue coming from recurring sales. Gross margin increased to 76.7% from 76.1% one year ago.
The company generated $31 mln from operations during the second quarter, bringing its total cash, cash equivalents, and short-term and long-term investments to $2.4 bln.
BlackBerry Chairman and CEO John Chen said the solid quarter was fueled by sequential growth in the company's Technology Solutions and Enterprise Software and Services businesses. The company expects that future growth will be supported in part by BlackBerry Spark, which is the company's Enterprise-of-Things platform designed for secure connectivity and communication between internet-connected devices.
BlackBerry reaffirmed its guidance for the fiscal year, expecting total software and services revenue growth between 8% and 10%. Software and services billings are expected to show double-digit growth while free cash flow is expected to be positive before including the impact of restructuring and legal proceedings.
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