'

BlackBerry Q1 disappoints after 1.1M smartphones sold

The company's first-quarter estimates fell far below Wall Street expectations.

(Image: CNET/CBS Interactive)

For BlackBerry, recovery seems to only get further away.

The Canadian smartphone maker and security solutions provider posted Tuesday a fiscal first-quarter loss of $28 million, or 5 cents a share, on revenue of $658 million (statement).

Wall Street was expecting a loss of 3 cents per share on revenue on $679 million.

The company has in recent years shifted away from device and hardware sales, what it was long known best for, in favor of providing enterprise services for a range of mobile platforms.

But it's hardware business, which still makes up about two-fifths of the company, is far from dead. BlackBerry said it "recognized revenue" on just 1.1 million devices, with an average selling price of $240.

During the quarter, the company had $3.32 billion in cash and equivalents, an increase of $50 million.

Looking ahead to the second quarter, the company expects to turn a profit "some time in fiscal 2016."

Although BlackBerry's quarter wasn't the greatest, the company got a boost from Wall Street after it signed a patent cross-licensing pact with Cisco. In a statement, BlackBerry said terms of the deal are confidential. But the biggest takeaway may be that BlackBerry's intellectual property can be monetized.

Shares in the company were up more than 8 percent in pre-market trading.