By late morning, more than 48.9 million BlackBerry shares had been traded, more than triple its 30-day average volume of 13.6 million. The last time BBRY had gained more than 10 percent in a day was Aug. 12.
Toronto-based BlackBerry is trying to revive its fortunes in a fiercely competitive marketplace that has largely left it for dead. It reported a net loss of $4.4 billion, or $8.37 a share, in the quarter ended Nov. 30. That compares with Wall Street expectations of a quarterly loss excluding items of 44 cents a share on $1.59 billion in revenue, according to a consensus estimate from Thomson Reuters. Revenue for the quarter plunged 24 percent from the previous quarter, to $1.2 billion.
The company is in the midst of a broad reorganization to help it refocus its efforts on enterprise software and security, while helping the company to find a way to profit from the devices bearing its name. BlackBerry touted growth in its enterprise service, as well what it says were more than 40 million new Apple and Samsung smartphone users who migrated to its BlackBerry Messenger (BBM) application.
"With the operational and organizational changes we have announced, BlackBerry has established a clear roadmap that will allow it to target a return to improved financial performance in the coming year," said John Chen, BlackBerry's interim CEO and executive chairman.
"While our Enterprise Services, Messaging and QNX Embedded businesses are already well-positioned to compete in their markets, the most immediate challenge for the company is how to transition the devices operations to a more profitable business model," he added.
That mission, however, may be easier said than done. BlackBerry's market share has dwindled into the single digits, and efforts to rebrand itself in the face of ferocious competition have consistently fallen short. The make-or-break launch of the BlackBerry 10 fell flat with consumers, which forced the company to take a massive write-down on the units and lay off about 4,500 people.
Barely a month at the helm of the troubled company, Chen has his work cut out for him. Some longtime BlackBerry watchers say his first moves—including an executive reshuffle—put him on the right track.
The alliance with Foxconn may help BlackBerry gain a modicum of headway in a fast-growing segment of the mobile market. According to technology analysts, emerging markets are projected to be one of the hottest markets for smartphones in the coming year.
In November, the company jettisoned Thorsten Heins from his perch as chief executive, while simultaneously ending a buyout agreement with Fairfax Financial, opting instead for a $1 billion infusion of cash from a group of investors. Earlier this week, two senior executives in charge of global sales and merger strategy also departed the company.
--By CNBC's Javier E. David.