Why BlackBerry Stock Fell Wednesday

The company's fiscal first-quarter results failed to impress.

Daniel Sparks
Daniel Sparks
Jun 26, 2019 at 1:19PM
Technology and Telecom

What happened

Shares of BlackBerry (NYSE:BB), a provider of security-focused software and services for enterprises, took a hit on Wednesday. The stock fell as much as 10.1% but is down about 9% as of 12:30 p.m. EDT.

The stock's pullback follows BlackBerry's underwhelming fiscal first-quarter earnings release. 

A chalkboard sketch of a chart showing a down arrow.

Image source: Getty Images.

So what

For its first quarter of fiscal 2020, BlackBerry reported non-GAAP (adjusted) revenue of $267 million, up 23% year over year. GAAP revenue was $247 million, up 16% year over year.

Growth during the quarter was partly helped by BlackBerry's recent acquisition of endpoint security technology specialist Cylance. Excluding revenue from Cylance, BlackBerry's non-GAAP software and services revenue was up 8% year over year. Some analysts, according to Bloomberg, were expecting Cylance to contribute more revenue during the quarter.

Non-GAAP earnings per share for the period was $0.01 -- a penny ahead of analysts' average forecast. 


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Now what

BlackBerry management is happy with the company's start to fiscal 2020, noting that its Cylance acquisition is ahead of schedule. In addition, BlackBerry says it has a "robust product cycle this year, with over 30 new secure communication products and services to be released."