BlackBerry beats estimates on earnings, as it is enjoying the benefits of Cylance, buy

FILE PHOTO: A Blackberry, a sign is seen in front of their offices on the day of the annual general meeting for shareholders in Waterloo, Canada on the 23rd of June to the end of 2015. REUTERS/Mark Blinch/File Photo

(Reuters) – the Canadian maker of the BlackBerry, Ltd. on Wednesday beat analysts ‘ expectations for quarterly revenue, as it benefited from the recent $1.4 billion commitment in the field of cyber-security company Cylance.

BlackBerry, in February, completed its acquisition of California-based Cylance, which is the software that makes use of machine learning is in place for security breaches.

In the first quarter, adjusted earnings of Cylance, was $51 million, exceeding the average analyst estimate of $ 48.8 million.

The Waterloo, Ontario-based BlackBerry, once known for its phones, the sale of which are used in mobile phones and car manufacturers, and, more recently, the provision of technology to firms in the development of unmanned aerial vehicles.

BlackBerry’s adjusted sales increased by 23% to $267 million for the quarter, beating the estimates of $265 million, according to IBES data, Refinitiv.

The net loss narrowed to $35 million, or 9 cents a share, in the quarter ended May 31 of about $60 million, or 11 cents a share, a year earlier.

Excluding one-time items, the company earned 1 cent per share, in line with analysts’ estimates.

The company’s U.S.-listed shares were volatile in premarket trading, after the reporting of the results. They were last up 1.2% at $8.39.

Reporting Debroop Roy in Bengaluru; Editing by Maju Samuel

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