BlackBerry beats revenue estimates as it reaps rewards of Cylance buy

(Reuters) – Canadian software maker BlackBerry Ltd on Wednesday beat analysts’ expectations for quarterly revenue, as it benefited from its recent $1.4 billion bet on cybersecurity firm Cylance.

BlackBerry in February completed its acquisition of California-based Cylance, whose software uses machine learning to preempt security breaches.

In the first quarter, adjusted revenue from Cylance was $51 million, above the average analyst estimate of $48.8 million.

Waterloo, Ontario-based BlackBerry, once known for its phones, has pivoted to selling software such as those used in mobiles and by automakers, and more recently supplying technology to companies developing driverless cars.

BlackBerry’s adjusted revenue rose 23% to $267 million in the quarter, beating estimates of $265 million, according to IBES data from Refinitiv.

The company’s net loss narrowed to $35 million, or 9 cents per share, in the quarter ended May 31, from $60 million, or 11 cents per share, a year earlier.

Excluding one-time items, the company earned 1 cent per share, in line with analysts’ estimates.

The company’s U.S.-listed shares were volatile in premarket trading after reporting results. They were last up 1.2% at $8.39.

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