Market Insider

BlackBerry posts flat earnings and Wall Street likes it

Aaron Harris | Reuters
BlackBerry CEO: Bullish on hardware
BlackBerry CEO: Bullish on hardware

BlackBerry shares climbed nearly 4 percent on Thursday after the smartphone maker posted earnings that broke even, topping expectations, even as revenue nosedived.

The Canadian mobile company announced an adjusted revenue of $424 million, versus expectations for $480.9 million, according to Reuters estimates. The firm was expected to post a loss of 8 cents a share.

BlackBerry also reported a $670 million net loss on a non-adjusted basis, or $1.28 per share over the past three months. Software and licensing revenue was $166 million, which put the firm just under the full-year growth rate it had hoped for.

"Our current plan calls for continued investments to expand our addressable markets and drive sustainable profitability and revenue growth. For the full fiscal year, we are on track to deliver 30 percent revenue growth in software and services," said John Chen, Executive Chairman and CEO of Blackberry in a release.

Chen said Thursday on CNBC's "Squawk Alley" that BlackBerry will put its investors first, even if that means drifting away from the hardware business.

"If we find that in spite of all the stuff we're working on, the market tells us that the hardware business by itself has an issue with making money and the volumes are just not there, then we will do the right thing for the shareholders and not just continuously focus on losing money," Chen said.

Chen said BlackBerry will start to license its hardware business to "other could even be competitors for that matter."

BlackBerry traded near $7 per share on Thursday. So far this year, however, the firm's stock has tumbled 24 percent.

BBRY year to date