BlackBerry stock surges on surprise profit

Written By limadu on Kamis, 19 Juni 2014 | 05.32

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NEW YORK (CNNMoney)

Shares of the struggling smartphone maker surged more than 10% in premarket trading and are on track to open at their highest level since late March.

The company earned $23 million in the quarter. Excluding certain charges though, BlackBerry (BBRY, Tech30) did post a loss of 11 cents per share. But analysts were expecting results to be much worse. The forecast of analysts polled by Thomson Reuters was for a loss of 26 cents.

Sales for the Waterloo, Ontario-based company fell 1% to $966 million, but that was better than Wall Street's consensus estimate of $963 million.

BlackBerry has been fighting an uphill battle to stay relevant in the world of mobile devices. It has lost market share to Apple (AAPL, Tech30), companies like Samsung that offer gadgets running on Google's (GOOGL, Tech30) Android operating system and Microsoft (MSFT, Tech30).

But John Chen, who took over as CEO in November, has injected new life to the company. He has stressed BlackBerry's software over hardware and has made several product announcements that Wall Street has cheered. Last month, the company launched its Project Ion, an initiative to develop more connected devices ... a trend dubbed the Internet of Things.

On Wednesday, BlackBerry reached a deal with Amazon that will let users of BlackBerry's newest operating system access Android apps in Amazon's (AMZN, Tech30) appstore later this fall.

In a written statement, Chen said that BlackBerry is "firmly on track to achieve important milestones, including our financial objectives and delivering a strong product portfolio." He added that the company is focusing on growth so it can return to profitability for the long haul.

And it looks like Chen will have more breathing room to execute the turnaround plan. The company ended last quarter with $3.1 billion in cash, up from $2.7 billion in the previous quarter. There have been growing concerns about how much cash BlackBerry has been burning. But the company was able to boost its cash position thanks to a tax refund and sale of real estate.

First Published: June 19, 2014: 7:49 AM ET


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