Shares in BlackBerry Ltd. dropped slightly in after-hours trading today despite the company mostly beating analysts’ expectations for its fiscal first quarter.
For the quarter ended May 31, BlackBerry reported a loss before costs such as stock compensation and legal expenses of five cents per share on revenue of $168 million. Analysts had been expecting an adjusted loss of six cents a share on revenue of $157 million.
The only miss in the figures was a net loss of 35 cents per share, much more than the expected 13 cents per share. The higher-than-expected net loss was primarily driven by a onetime litigation settlement of $165 million.
BlackBerry’s product portfolio saw growth across the board. Revenue for the company’s Internet of Things division rose 19% from a year ago, to $51 million. Cybersecurity revenue rose 6%, to $113 million, and software and services revenue, including cybersecurity, rose 9%, to $164 million.
As of the end of the quarter, BlackBerry had total cash, cash equivalents, short-term and long-term investments of $721 million and a total net cash position of $356 million.
In the quarter, BlackBerry entered into a multiyear agreement with car parts manufacturer Magna International Inc. to develop next-generation Advanced Driver Assistance System solutions for global automakers.
On the cybersecurity side, BlackBerry added zero-day phishing detection and domain classification to its zero-trust network access solution CylanceGATEWAY. The zero-day protection enables a virtual private network protection replacement by offering secure access from any devices, on any network, to any application.
Blackberry also enhanced its Managed Security Service Provider channel program, including expanding the range of products available, increased partner support and more comprehensive training.
“The IoT business maintained its momentum of new design wins in rapidly growing core Auto domains, including Advanced Driver Assistance Systems and Digital Cockpits and delivered a third consecutive record quarter for pre-production revenues,” John Chen, executive chairman and chief executive officer of BlackBerry, said in a statement. “The Cybersecurity business demonstrated solid traction in the market by recording double-digit year-over-year billings growth.”
BlackBerry did not disclose its outlook in its general release and planned to do so in an investor call. Notes from the call were not available as of the time of writing. Shares in BlackBerry fell a little under 2% in late trading.