Despite management’s claims that the company is on a path to profitability, BlackBerry's net loss in this year’s first quarter grew by nearly 300% as its sales continue to deteriorate.
The Canadian technology concern reported a first-quarter net loss of $42 million U.S., which is 282% greater than a net loss of $11 million U.S. posted a year earlier.
The latest results amounted to a loss of $0.07 U.S. per share, compared with a loss of $0.02 U.S. the previous year.
Revenue at BlackBerry, which reports its financial results in U.S. dollars, totaled $144 million U.S. in Q1, down 61% from $373 million U.S. a year ago.
Despite the poor results, BlackBerry chief executive officer (CEO) John Giamatteo said on an earnings call with analysts and media that the company is on a “path to profitability.”
The comments come as BlackBerry prepares to divide its cybersecurity business and its Internet of Things (IoT) division.
BlackBerry is also cutting costs as its financial situation deteriorates. Earlier this year, the company eliminated 200 jobs and closed six of its 36 global offices.
Giamatteo, who became CEO of BlackBerry last December, said the cuts to date should deliver BlackBerry $125 million U.S. in total cost savings.
In Q1 of this year, BlackBerry’s cybersecurity business posted revenue of $85 million U.S., while its Internet of Things division earned $53 million U.S. and its licensing segment $6 million U.S.
In terms of guidance, BlackBerry said it expects revenue of $136 million U.S. to $144 million U.S. in the current second quarter of the year.
Giamatteo said the latest financial results show that the company’s “strategy is working.”
BlackBerry’s share price has declined 56% over the last 12 months and currently trades at $2.21 U.S. per share, making it a penny stock.
