BlackBerry (BBRY 7.30, +0.35) has jumped 5.3% in pre-market after beating expectations and making positive comments about fiscal year 2018. With today's advance, the stock is nearing this year's high of $8.05.
Shares of BlackBerry have traded near their current levels for the past five years as the company struggled to make headway in a smartphone market dominated by Apple and Android devices. Despite the falling popularity of BlackBerry devices, the company has been determined to find avenues that could present growth opportunities. The company's software is being used for the development of an autonomous driving platform and its latest phone, BlackBerry KEYone, is an Android-based device that claims to be the most secure phone in the world. The release of the KEYone comes at a time where more and more users are becoming concerned with the security of their mobile devices. In addition, the company signed an agreement to design, manufacture, and sell its devices in India, Sri Lanka, Nepal, and Bangladesh.
BlackBerry reported above-consensus fourth quarter earnings of $0.04 per share on a 39.0% year-over-year drop in revenue to $297 million, which was ahead of expectations.
Given the company's ongoing shift in focus, it was not surprising to see that Software & Services revenue ($166 million) made up almost 56.0% of total revenue. Mobility Solutions revenue ($82 million) made up 27.6% of total revenue while System Access Fees ($49 million) made up the remaining 16.4% of total revenue.
BlackBerry noted that roughly 80% of its Software & Services revenue was recurring and that more than 3,500 enterprise customer orders were made during the quarter.
Total cash, cash equivalents, short-term and long-term investments increased by $89 million to $1.70 billion.
Gross margin improved to 60.1% from 45.3% one year ago. For the full year, gross margin increased to 47.1% from 43.6%.
Looking ahead, the company expects that its Software & Services business will grow as fast or faster than the overall market. The company expects to be profitable on non-GAAP basis with positive free cash flow expected for the full year.