Excluding special items, the company drew down $255 million in cash in the period, significantly less than the $784 million it used in the fiscal fourth quarter.
BlackBerry has been slashing costs and has more than halved its workforce over the last two years as part of a do-or-die attempt to turn its business around after losing ground to Apple's iPhone and Samsung Electronics' devices that run on Google's Android system.
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Last year it forged a partnership with FIH Mobile, the Hong Kong-listed unit of Taiwanese electronics company Foxconn Technology, to help design, manufacture and sell some of its devices.
As part of the deal it no longer pays the full upfront costs for parts used in its devices. Instead, Foxconn, the trading name of Hon Hai Precision Industry, takes a share of profits on each device in return for taking on the risk of inventory management.
On a call with analysts and investors on Thursday, Chief Executive John Chen was upbeat on the Z3, a new phone built under the Foxconn deal and launched in Indonesia earlier this year. He said demand was strong and inventory has run low at some points.
Gross profit margin rose to 46.7 percent in the fiscal first quarter to May 31, from 33.9 percent a year earlier.