BlackBerry Ltd. (NASDAQ: BBRY)on Friday reported first-quarter revenue that fell short of analysts’ estimate, which raised investors’ concerns on the company’s ability to generate revenue from new business lines and sent the company’s shares down more than 10 percent.
The Waterloo, Ontario-based company said revenue was $244 million in the fiscal first quarter, missed analysts’ estimates of $264.4 million, according to Thomson Reuters. Revenue from enterprise software and services fell to $101 million, compared with $106 million a year earlier.
"In Q1, we made great progress strengthening our strategic position in emerging growth markets, most notably in cybersecurity and the Enterprise of Things," CEO John Chen said in a statement.
BlackBerry has been trying to turnaround the company by providing software services. The exited its hardware business last year and focus more on software business. The company posted adjust earnings of 2 cents per share for the first quarter, topping analysts estimate of break-even. This is the third straight quarter for BlackBerry to report positive profit.
BlackBerry shares fell as much as 11 percent to $9.84 in the early trading. The stock had gained about 60 percent this year as of Thursday’s close.
"We secured key design wins in high growth segments of automotive technology, including advanced driver assist, digital instrument cluster and our hypervisor solution. Our ecosystem is growing with Qualcomm and NVIDIA adopting BlackBerry technology for their automotive platforms. ... Our financial foundation is solid." The company said in a press release.