BlackBerry writes down value of its Spark unit, posts US$636 million Q1 loss - InfoNews

Current Conditions

Wednesday night: Cloudy periods. Low 12.

BlackBerry writes down value of its Spark unit, posts US$636 million Q1 loss

June 24, 2020 - 4:30 PM

WATERLOO, Ont. - BlackBerry Ltd. posted a US$636 million net loss in the first quarter ended May 31, as it recorded a non-cash accounting writedown related to its BlackBerry Spark unit.

The company, which reports in U.S. currency, said the loss amounted to $1.14 per share.

That included a $594-million goodwill impairment primarily related to its BlackBerry Spark reporting unit, which provides tailored cybersecurity options for enterprises.

Chief financial officer Steve Rai told analysts the writedown was driven by the broad-based economic decline and its impact on BlackBerry's market capitalization.

Revenue was $206 million, down from $247 million in the first quarter of fiscal 2020.

Under BlackBerry's non-GAAP measures, it earned two cents per share with $214 million of revenue, including $8 million that can't be recognized under U.S. accounting rules.

John Chen, BlackBerry's chairman and chief executive officer, said the company won't provide estimates for the future given the current uncertainty.

BlackBerry stock closed at $6.69 on the Toronto Stock Exchange and US$4.92 on the New York Stock Exchange. After the earning's report, the shares fell to US$4.83 in after-hours trading.

Companies in this story: (TSX:BB)

News from © The Canadian Press, 2020
The Canadian Press

  • Popular kelowna News
View Site in: Desktop | Mobile