By Gerrit De Vynck, Bloomberg Business
BlackBerry Corp. reported a narrower third-quarter loss than analysts estimated as software revenue kicked in from its acquisition of Good Technology Corp. Shares soared in early trading.
The loss excluding certain items was 3 cents a share, the Waterloo, Ontario-based company said Friday in a statement. Analysts predicted a loss of 14 cents, the average of estimates compiled by Bloomberg. Revenue was $557 million compared with projections for $488.8 million.
BlackBerry jumped 9 percent in early U.S. trading to $8.50. The stock was down 29 percent as of the close Thursday.
BlackBerry is racing toward a goal of $500 million in annual software revenue by March 2016, a key part of Chief Executive Officer John Chen’s plan to transition the company away from relying on shrinking handset sales. Software sales were $161.5 million, up from $54 million in the same quarter last year.
The software revenue boost gets the company closer to that goal. Still, BlackBerry left out the number of smartphones it sold in the quarter, a number investors had been looking for to measure the impact of its new Android phone on sales. Hardware revenue was $222.8 million, down from a year earlier but up from $201 million last quarter.