Shares of BlackBerry (BBRY) advanced to $8.29 at the close yesterday in New York and have risen more than 12% in early trading Thursday, after the troubled smartphone maker, which has been trying to reinvent itself under new CEO John Chen, reported first quarter revenue and EPS that beat analysts’ expectations.
The company reported a GAAP net income of $0.04 earnings per share for the quarter, up from a loss of $0.16 a year ago. The consensus estimate was for EPS loss of $0.25.
Revenue in the three months ended in May came in at $23 million, compared with a $423 million loss the company posted three months ago and up from its year-earlier loss of $84 million. The Waterloo, Ont.-based smartphone maker generated for the first quarter of FY2015, $966 million in revenue, which was up from the Street’s estimates of between $954 million and $963 million, but down 1 percent q/q, and from $3.07 billion in the previous year.
The revenue breakdown for the quarter was approximately 39% for hardware, 54% for services and 7% for software and other revenue.
Mr. Chen said in a statement that the results were a sign that his plan was working and that he aims to make BlackBerry a break-even cash-flow company by the end of FY2015 with a target of rising to profitability in its 2016 financial year.
“Over the past six months, we have focused on improving efficiency in all aspects of our operations to drive cost reductions and margin improvement,” Mr. Chen said. “Looking forward, we are focusing on our growth plan to enable our return to profitability.”
BBRY is up $1.07, or 13%, trading at $9.38 as of 10:08 AM EDT.