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BlackBerry Posts Unexpected Quarterly Profit

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BlackBerry has posted a deep slump in its first quarter revenues, but also announced an unexpected profit, which sent its share price soaring.

The company's shares jumped by 12 percent in early trading after it announced a net profit of USD23 million for the three months to the end of March.

However, revenues plunged by 69 percent to USD96 million. The revenue breakdown for the quarter was approximately 39% for hardware, 54% for services and 7% for software and other revenue.

The company said that cost cutting lead to higher margins and the turn around in profitability.

"Our performance in fiscal Q1 demonstrates that we are firmly on track to achieve important milestones, including our financial objectives and delivering a strong product portfolio," said John Chen, Executive Chairman and Chief Executive Officer of BlackBerry. "Over the past six months, we have focused on improving efficiency in all aspects of our operations to drive cost reductions and margin improvement. Looking forward, we are focusing on our growth plan to enable our return to profitability."

During the first quarter, the company recognized hardware revenue on approximately 1.6 million BlackBerry smartphones.

The company ended the period with cash and investments of $3.1 billion.

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