BlackBerry swings to $671M quarterly profit despite lower sales

BlackBerry is reporting a $671 million US profit for the first quarter but its revenue was lower than expected, missing analyst estimates.

The company says its revenue for the quarter was $235 million US compared with estimates of $264.39 million US, according to Thomson Reuters data.

While first-quarter profit was large for the Waterloo, Ont.-based company, it was also mostly because of a one-time $815 million payment received as a rebate from Qualcomm one of its suppliers after an arbitrator ruled in BlackBerry's favour.

Without that, the company would have posted a profit of just $14 million, on an adjusted basis.

The negative surprise in sales seemed to have more impact with stock traders than the profit, with BlackBerry shares falling in extended trading shortly after the announcement.

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BlackBerry shares were down roughly six per cent at about 7 a.m. ET. They traded at $10.38 US, compared with the previous close on Nasdaq at $11.06 US.

The company's shares had risen since the beginning of the month amid speculation that BlackBerry could be a takeover target and its stock could rise substantially in future.

BlackBerry's shares rose about 50 per cent from roughly $10 in April to a 52-week high of $15.82 on June 1 at the Toronto Stock Exchange.