Earnings Watch: BlackBerry Software Revenue Seen Pulling It Back From The Brink

BlackBerry (BBRY) is expected to report fourth quarter earnings before the open on Friday, April 1, with a conference call scheduled for 8:00 am ET. BlackBerry manufactures and markets , such as smartphones, and creates software and services for those devices.

EXPECTATIONS: Analysts are expecting losses per share of (10c) on revenue of $563.18M. The consensus range is (21c)-0c for EPS on revenue of $537.2M-$586.0M, according to First Call.

LAST QUARTER: On December 18, BlackBerry reported a loss per share, excluding certain items, of (3c), versus analysts' consensus estimate for a (14c) per share loss. The company's adjusted revenue of $557M topped the consensus expectation near $489M. The company said that 29% of its non-GAAP revenue in Q3 came from software and services, 31% from service access fees, and 40% from hardware and other revenue. At the time, Executive Chairman and CEO John Chen said, “To sustain our current direction, we are stepping up to drive continued software growth and the additional PRIV launches. I anticipate this will result in sequential revenue growth in our software, hardware and messaging businesses in Q4.” On the company's earnings conference call, Chen said the company was comfortable with guiding Q4 EPS in line with analyst estimates, which at the time were at (11c) per share, and that BlackBerry expected Q4 revenue at about the same level or slightly above Q3 revenue. NEWS: In a CNET interview published on January 6, CEO John Chen said the company plans to release one or potentially two phones in 2016, both using the Android operating system. Regarding the company's recently-released Priv, Chen said sales were “so far, so good,” adding that he is taking a “cautiously optimistic view.” On January 29, BlackBerry announced that it received approval from the Toronto Stock Exchange to amend its current normal course issuer bid in order to increase the maximum number of common shares that may be repurchased from 12M common shares to 27M common shares. On February 24, BlackBerry announced that it had acquired UK-based Encription Limited. “Among other things, Encription specializes in penetration testing – which means they can mimic the techniques of malicious hackers and take those learnings to educate and mitigate the cyber risks posed by criminal hackers,” the company said in the blog post announcing the deal. Earlier this month, BlackBerry's senior marketing manager for developer relations Lou Gazzola confirmed in a blog post that Facebook (FB) will discontinue support of their essential APIs for BlackBerry and that Facebook's WhatsApp will end support for BlackBerry 10 and BBOS at the end of 2016.

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