Proactive Investors - Blackberry (TSX:TSX:BB) has surprised investors with a profitable first quarter as the Canadian tech company's cybersecurity business saw increased client spending, while its enterprise software gained momentum in the automotive sector.
After hours on Wednesday, BlackBerry (TSX:BB) reported earnings of 6 cents per share for the quarter ended May 31, 2023, beating analysts' expectations for a loss of 5 cents per share, while revenue for the quarter reached $373 million, exceeding the average estimate of $160.4 million.
The firm's cybersecurity business unit saw a sequential revenue increase of 5.5% to $93 million, while licensing and other services generated $235 million, mainly derived from a patent sale.
BlackBerry, which went public in 1997 and soon became popular for its smartphones, shut its flagship business last year and has since been trying to sell its legacy patents related to its mobile devices. In March, the company signed a deal with Malikie Innovation Limited to sell patents primarily related to its mobile devices for up to $900 million.
Waterloo, Canada-based Blackberry has previously announced plans to review strategic alternatives, including the potential separation of its core businesses in cybersecurity and software systems.
In pre-market trading on Thursday, BlackBerry shares jumped 16.2% higher to US$5.82.