[ad_1]
Shares of BlackBerry (BB) fell 17% early in the session. The company released its results for the second quarter of 2020 ending in February. BlackBerry reported non-GAAP revenues of $ 261 million, an increase of 22% over the previous year. GAAP revenues increased 16% to $ 244 million.
The company's software and services revenues increased by 30% to $ 256 million. Adjusted EPS was $ 0.00 for the August quarter. Analysts expect BlackBerry to record revenue of $ 266.2 million with EPS of $ 0.01 in the second quarter.
Although BlackBerry exceeded profit expectations, its sales were below analysts' expectations, which led to a decline in equities. The company reported revenues of $ 214 million and earnings per share of $ 0.04 in the same quarter last year.
BlackBerry estimates revenue growth between 23% and 25% in 2020
BlackBerry estimates that its sales will increase by 23% to 25% during fiscal year 2020. The company expects its revenues to be driven by strong growth in billing. In addition, the company expects to be profitable non-GAAP by 2020. The company had previously estimated that its sales for fiscal year 2020 would increase from 23% to 27%.
Analysts expect BlackBerry sales to increase by 23.2% to $ 1.13 billion, a profit of $ 0.07 in 2020.
What motivated the company's sales in the second quarter?
In August, the company's sales were impacted by a strong performance in its QNX and Cylance lines of business. The license business of the company also exceeded its expectations. BlackBerry acquired Cylance for $ 1.4 billion earlier this year.
John Chen, CEO of BlackBerry, said: "We achieved non-GAAP earnings per share and generated free cash flow, even with increased sales and product development investments to support future growth. . "
He also said, "We are encouraged by the positive welcome reserved for BlackBerry Intelligent Security. We have launched many exciting new products over the next six months. "
The company wants to integrate its artificial intelligence technologies and endpoint management capabilities into a single platform to address the growth of the endpoint security industry.
BlackBerry's gross margin increased from 76.7% in the same quarter last year to 72.1% in the second quarter of 2020. Sales grew by more than 16%, while sales, marketing and increased by 24.5% in the second quarter. Research and development expenses increased by 21.6%, while depreciation costs increased by 37%.
Due to the recent decline, the stock has fallen 12% since the beginning of the year. BlackBerry shares have fallen nearly 40% since early April. The stock is trading almost to its lowest level in four years.
Investors are waiting for BlackBerry to successfully rotate and arrange a turnaround. However, the company has disappointed investors and analysts because of the loss of its revenues and the reduction of its forecasts.
[ad_2]
Source link