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BlackBerry Reports a Jump in Software Sales


John S. Chen, BlackBerry’s chief executive. The company has drastically cut costs and jobs. Credit Brendan McDermid/Reuters

OTTAWA — BlackBerry, the smartphone maker that is refocusing its operations on software sales, said on Friday revenue from that segment rose 119 percent in its most recent quarter. But the company reported a net loss of $ 89 million, or 17 cents a share, during its third quarter.

Excluding accounting adjustments, the company reported a loss of $ 15 million, or 3 cents a share. Those results beat estimates. Analysts polled by Thomson Reuters had expected the company to post an adjusted loss of 14 cents a share.

The company did not offer early sales figures for the PRIV, the first BlackBerry to use Google’s Android operating system, which arrived in stores during the quarter. The new phone is intended to overcome one of the key shortcomings of the BlackBerry 10 operating system: the absence of several popular apps. In a statement, John S. Chen, the company’s chief executive, said the new phone had been “well received” since its introduction last month.

The quarterly report was the first to include revenue from its acquisition of a former rival, Good Technology.

During the quarter, which ended on Nov. 28, BlackBerry generated revenue of $ 548 million, up from $ 490 million in the previous quarter. But the period also reflected its decline as a global force in the wireless business. Just over half of its revenue came from sales in North America. During the same period a year ago, the region accounted for only 26.9 percent of the company’s sales.

The collapse of its sales in some overseas markets has been pronounced. Sales in Europe, the Middle East and Africa, a critical market segment for the company, fell to $ 194 million during the quarter. That is nearly half of the $ 366 million reported for the region during the same period in 2014.

Under Mr. Chen, BlackBerry has drastically cut costs and jobs. Perhaps reflecting the shift to Google’s technology, it spent $ 100 million on research and development, compared with $ 154 million during the same period a year ago.

Correction: December 18, 2015

An earlier version of this article mischaracterized how the company’s results compared to analysts’ estimates. After taking into account certain accounting adjustments, BlackBerry’s quarterly loss beat those estimates; it did not fail to meet estimates.


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