BlackBerry (NYSE:BB) shares dipped 1% in after-hours even as the Canadian software company posted second-quarter results that topped expectations.
For the period ending August 31, BlackBerry (BB) said it lost 5 cents per share on $168M in revenue. Included in that was $162M from software and services.
Analysts were expecting a quarterly loss of 7 cents per share on $165.8M in revenue.
"This was a solid second quarter for BlackBerry, where we delivered both revenue in line with, and EPS ahead of, expectations," said John Chen, Executive Chairman & CEO, BlackBerry, in a statement. "Our IoT business continues to gain market share, and design-phase revenue remained at near-record levels."
The company's cybersecurity revenue fell by 8% year-over-year, and "Investors will need to wait until next year before ARR rises," Seeking Alpha contributor Chris Lau said in reaction. "The company wants to pivot its growth in the automotive sector. Although QNX will benefit from the company's design with Volkswagen, investors need IVY progressing from proof of concept to revenue generation.
"Amid market uncertainty, further waiting might test investor patience," he added.
"BlackBerry again delivered a top line beat only because estimates dropped between quarters, with multiple key revenue and ARR metrics further weakening," said Seeking Alpha contributor Bill Maurer.
"The company suggests that we'll see meaningful progress in its next fiscal year, but we're approaching the end of year nine with John Chen as CEO and the company is nowhere near where it should be," he added.
BlackBerry (BB) will host a conference call at 5:30 p.m. EST to discuss the results.
Last month, it was reported that BlackBerry's (BB) $600M deal to sell patents fell apart after the Canadian-led lending syndicate withdrew from the process.