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BlackBerry shares surge as profit rises on software strength

Posted: September 28, 2017

A Canadian flag flies at BlackBerry’s headquarters in Waterloo, Ont. in this file photo.  GEOFF ROBINS/THE CANADIAN PRESS

BlackBerry Ltd. is hailing “our complete transformation to a software company,” posting a second-quarter profit of $19-million (U.S.).

Its stock was on the rise in premarket action after reporting the profit of 4 cents a share, basic, compared to a loss of $371-million or 71 cents a year earlier.

Shares were up more than 8 per cent heading into the Nasdaq open.

Revenue dipped to $238-million from $334-million.

The Canadian company, once known for its dominance of the smartphone market, also boasted of what is now record software and services revenue of $185-million.

“We achieved historical highs in total software and services revenue and gross margin, as well as the highest non-GAAP operating margin in over five years, reflecting our complete transformation to a software company,” chief executive officer John Chen said in unveiling the numbers, referring to “Our position as a market leader in security continues to strengthen,” he added, as the company projected software and services revenue gains of between 10 and 15 per cent this year.