BlackBerry posts surprise fourth quarter profit but revenue declines below expectations

Mobile phone giant BlackBerry swung to a profit in the fourth quarter, though revenue for the period declined more than expected.

The Canadian company posted net profit of $28m (£18.8m) for the fourth quarter, compared with a $148m loss a year earlier, marking the second consecutive three-month period in which it had surprised analysts by posting an unexpected profit.

However, the New York-listed group said revenue declined 16.7% to $660m, below analysts’ expectations of $786.4m, while the group reported positive cash flow of $76m in the period and its cash position rose 5.5% quarter-on-quarter to $3.27bn.

"Our focus this past year was on getting our financial house in order while creating a multiyear growth strategy and investing in our product portfolio,” said group chief executive John Chen.

“We now have a very good handle on our margins, and our product road maps have been well received.”

Chen added that the company would now focus on stabilise its revenue with sustainable profitability and cash generation.

BlackBerry shares were up 1.99% to $9.48 at 11:47 in New York on Friday.