BlackBerry (NASDAQ: BBRY) (TSX: BB), formerly Research In Motion Ltd., posted a second straight quarterly profit partly driven by launch of its new BlackBerry 10 smartphone.
The Waterloo, Ontario-based company expects breakeven results in the first quarter based on its lower cost base, more efficient supply chain, and improved hardware margins.
Shares fell 1.90 percent in premarket trading on Thursday.
BlackBerry shipped 6 million smartphones during the fourth quarter, including roughly 1 million BlackBerry 10 units, while analysts expected 6.5 million devices.
The company lost three million subscribers in the quarter with a subscriber base of 76 million, down from 79 million in the prior quarter.
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BlackBerry is attempting to stem its market share slide with its new Z10 and upcoming Q10 keyboard model.
"We have implemented numerous changes at BlackBerry over the past year and those changes have resulted in the company returning to profitability in the fourth quarter," commented CEO Thorsten Heins.
On an adjusted basis, earnings from continuing operations were $114 million or 22 cents a share for the fourth quarter.
GAAP earnings from continuing operations were $94 million, compared with a loss of $118 million in the comparable period of last year.
Revenue dropped 36 percent to $2.7 billion on a year-over-year basis.
Wall Street analysts, on average, expected BlackBerry to lose 29 cents a share on revenue of $2.8 billion.
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The stock, which has been trading in the 52-week range of $6.22 to $18.32, ended at $14.57 on Wednesday on the NASDAQ.