WATERLOO, Ontario and TORONTO -- BlackBerry (BBRY) reported a smaller-than-expected quarterly loss Thursday as the smartphone company's cost cutting and other turnaround efforts started to pay off.
Shares jumped more than 10 percent in early trade after BlackBerry burned through less cash than many expected and its gross profit margin rose from a year earlier.
"The short trade is over in this name for now -- for now," said BGC analyst Colin Gillis. "They've got enough liquidity, [and] they've given us clear profitability targets."
Excluding special items, the company drew down $255 million in cash in the period, significantly less than the $784 million it used in the fiscal fourth quarter.
%VIRTUAL-article-sponsoredlinks%BlackBerry has been slashing costs and has more than halved its workforce over the last two years as part of a do-or-die attempt to turn its business around after losing ground to Apple's (AAPL) iPhone and Samsung Electronics devices that run on Google's (GOOG) Android system.
Last year it forged a partnership with FIH Mobile, the Hong Kong-listed unit of Taiwanese electronics company Foxconn Technology, to help design, manufacture and sell some of its devices.
As part of the deal it no longer pays the full upfront costs for parts used in its devices. Instead, Foxconn, the trading name of Hon Hai Precision Industry, takes a share of profits on each device in return for taking on the risk of inventory management.
Gross profit margin rose to 46.7 percent in the fiscal first quarter to May 31, from 33.9 percent a year earlier.
The Waterloo, Ontario-based company reported net income of $23 million, or 4 cents a share, compared with a loss of $84 million, or 16 cents, a year earlier.
Excluding a one-time non-cash accounting gain and certain restructuring charges, the loss was $60 million, or 11 cents a share.
Analysts, on average, had expected a loss of 25 cents a share, according to Thomson Reuters I/B/E/S. Quarterly revenue dropped to $966 million from $3.07 billion a year earlier.
Cash rose to $3.1 billion from $2.7 billion on a sequential basis, helped by gains from the sale of real estate assets and a tax refund.
-Additional reporting by Alastair Sharp in Toronto.
7 Bad Habits That Cost You Thousands of Dollars a Year
Apart from the health costs (which are worth considering), smoking can drain your finances. The average cost of a pack of cigarettes is $5.51, according to the American Lung Association.
If you're a pack-a-day smoker, that means you're burning through $2,011.15 per year. That's enough to take your significant other on an one-week vacation -– including airfare, hotel and restaurants.
If that's not compelling enough, consider this: If you invested $2,011 per year ($167 a month) for 10 years, compounding yearly at a reasonable 7 percent growth rate, you'll have $27,690 within a decade. And the power of compounding only picks up the longer it has to play out. Even if you never added to that stash after the first decade, at that rate, the value will about double every 10 years.
And that's not even touching on any medical bills you may face.)
Potential cost: $2,000-plus a year (for a one pack a day in a state with near-average prices).
There's a reason that some people call the lottery a "voluntary tax" -- or, more harshly, a "tax on people who are bad at math."
Even if you're "just" buying a $1 scratch-off ticket each day, you're still throwing your money away. The odds of winning small lottery prizes are low, and the payouts are stacked heavily in favor of lottery. And the odds of winning a large lottery drawing like Mega Millions or Powerball are one in hundreds of millions. To put it in perspective, you have a (much) better chance of being struck by lightning.
And what if you're gambling with bigger stakes, such as slot machines or casino table games? Then we don't need to tell you how much you lose for every dollar you "make," because chances are, you're painfully aware of it.
Potential cost: $52 per year (one ticket a week) or $365 per year (one ticket a day). Or far more if you're hitting the casinos.
Whether you're pounding back dollar drafts during the game or indulging in high-end cocktails at a ladies' night, alcohol isn't cheap. Just a few cocktails each week can add up quickly.
Let's say you grab $1 drafts, three beers per sitting, twice a week. Factor $1 per drink as the tip, and you're paying $12 per week -– which comes to $624 per year.
What if you're drinking cocktails a couple of times a week? You could be looking at upwards of $2,000 a year in adult beverages.
Excessive drinking can also result in all sorts of other pricey problems, like fines for drunken driving, legal fees and higher insurance premiums -- not to mention that other wasteful spending moves tend to seem like great ideas when you're wasted.
Potential cost: $500 to $10,000-plus per year, depending on how much you drink, how expensive your liquor and whether or not you're bringing legal fees upon yourself.
It may not seem as "bad" as smoking or drinking, but regular drive-thru visits can add up -- both in terms of indirect health costs and and the price of the meals. Those enticing "value menu" items are rarely enough to fill you up, so you wind up buying a bunch, and the seemingly great-deal combo meals often contain more calories than the average person is would be wise to consume in several meals.
Either way, regularly eating out will take its toll. If you rely on it because it's quick and easy, consider investing in a slow cooker. Create big batches of food on the weekend that can be reheated throughout the week. Your wallet (and your waist) will thank you.
Potential cost: $300 to $2,000-plus per year, depending on how often you hit the drive-thru.
Whether you hate the dentist or you're the "suck it up and deal" type when it comes to health issues, steering clear of medical professionals can cost you big-time.
Preventive care such as annual checkups can catch potentially serious issues before they become serious. Seeking treatment as soon as you notice something feels not quite right is the most effective way to prevent little problems from ballooning into bigger ones.
Also bad? Going to see the doctor but then ignoring his advice, like dismissing his instructions to get more exercise or improve your diet.
Potential cost: Tens of thousands of dollars -– or perhaps your life.
Your car, just like your body, needs regular checkups and tuneups to run smoothly. Ignoring that "check engine" light on the dash, going too long between oil changes, or pretending that strange squealing noise will take care of itself can create excessive wear-and-tear on your car.
Will it cost you money upfront to get your car serviced, maintained and repaired? Yes. But it will cost you much more if you ignore any looming problems until you're immobile by the side of the road, waiting for the tow truck.
Potential cost: $500 to $5,000-plus, depending on the required car repair.
Any shopaholic can tell you the consequences of a retail spending spree, but even if you think you're a savvy consumer, you could be guilty of bad spending habits that quickly add up.
Do you grocery shop when hungry? Jump to buy something just because it's on sale? Open up store credit cards for that 15 percent off your first purchase, then forget to pay off the balance in time? Make impulse purchases at the register (or online)?
All of these things, while they might seem minor fiscal transgressions at the moment you're committing them, can add up. Be deliberate and strategic about your spending to get the most out of your money.
Potential cost: $500 to $5,000-plus per year, depending on how often you make impulse purchases and what types of items you're buying.