BlackBerry beats Q2 targets, cites growth in automotive vertical

Meanwhile, BlackBerry said handheld device revenue was $5 million, down from $8 million last quarter.
Written by Natalie Gagliordi, Contributor

BlackBerry delivered better-than-expected second quarter earnings, pointing to growth in its QNX embedded auto software. The company's shares were up nearly 10 percent in early trading.

The enterprise mobility and security software provider reported fiscal second quarter non-GAAP earnings of four cents a share on revenue of $214 million. On a GAAP basis, BlackBerry reported reported income of eight cents a share.

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Wall Street was expecting non-GAAP earnings of a penny per share on revenue of $210 million.

The Waterloo, Ontario-based company said total software and services revenue was $197 million. Enterprise software and services sales came to $92 million, while BlackBerry's said intellectual property and licensing revenue was $56 million. Handheld device revenue was $5 million, down from $8 million last quarter.

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Meantime, revenue from BlackBerry's Technology Solution came to $49 million driven by growth in the automotive vertical. The company's gross margin rose to 78 percent.

"In the quarter, we exceeded our financial expectations driven by sequential growth in both our BlackBerry Technology Solutions and Enterprise Software and Services businesses" said BlackBerry CEO John Chen.

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In terms of outlook, BlackBerry expects its software and services revenue to grow 8-10 percent year-over-year, and sees its adjusted earnings per share to be positive for fiscal 2019.

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