TORONTO: BlackBerry Ltd said on Tuesday its revenue slide began to ease and its turnaround gained traction as revenue from its crucial software segment rose in the first quarter, sending its shares soaring 8.6 percent.
Quarterly revenue totaled $658 million in the quarter, slightly lower than the prior period, but software revenue more than doubled from a year ago to $137 million as the company pivots to that segment.
"The reaction is all about the software revenues," said Morningstar analyst Brian Colello. "This is the best sign yet that the turnaround is working."
Its shares rose to $9.99 in premarket trade on the Nasdaq from a close of $9.20 on Monday. The software revenue growth calmed the fears of analysts and investors, who have been concerned about BlackBerry`s ability to grow those revenues as it transforms itself from a hardware-focused company to more of a software and services provider.
Excluding a one-time accounting gain and charges related to restructuring, the company reported a first-quarter loss of $28 million, or 5 cents a share.
Analysts, on average, expected a loss of 3 cents a share, according to Thomson Reuters.
