BlackBerry Shares Tumble Following Q2 Results

Shares of BlackBerry Ltd (NASDAQ: BBRY) dropped more than 7 percent in pre-market trading after the company reported results for its fiscal second quarter on Friday.

The Waterloo, Canada-based company reported quarterly income of $51 million, or $0.10 per basic share, versus a year-ago loss of $207 million, or $0.39 per basic share. The company's diluted loss per share narrowed to $0.24 per share from $0.39 per share. Excluding one-time items, the company lost $0.13 per share.

Its revenue slipped to $490 million from $916 million. Analysts were expecting a loss of $0.09 per share on revenue of $610.6 million.

The average estimate among 73 Estimize users was for a loss of $0.05 per share and revenue of $613.66 million.

Non-GAAP software and services revenue gained 19 percent year-over-year to $74 million.

Its adjusted EBITDA came in at $68 million for the quarter, while non-GAAP operating loss totaled $84 million.

As of August 29, 2015, the company had $3.35 billion in total cash, cash equivalents, short-term and long-term investments.

During the quarter, the company repurchased 6 million shares for a total of $47 million.

Purchase orders with contract manufacturers declined to around $248 million at the end of the second quarter, versus $344 million in the year earlier quarter.

"I am confident in our strategy and continued progress, highlighted by our fourth consecutive quarter of year-over-year double digit growth in software licensing revenue and sixth consecutive quarter of positive free cash flow," said Executive Chairman and Chief Executive Officer John Chen. "In order to expand our leadership in cross-platform software and services, we are investing strategically - organically through new products and services based on the BES platform, and through acquisitions like AtHoc and Good."

BlackBerry projects 'modest sequential growth' in total sales for the remainder of FY16.

BlackBerry shares fell 7.54 percent to $6.50 in pre-market trading.