BlackBerry reported fiscal second-quarter sales that missed analyst estimates and said it will stop making its smartphones and focus on its software business.
Fiscal second-quarter earnings per share, excluding some items, was flat, compared with analysts’ average estimate of a loss of 5 cents. Revenue in the quarter was $352 million, missing estimates of $390 million. Software revenue was $156 million, more than double what it was in the same period last year, but down from $166 million last quarter.
BlackBerry is entering a joint venture with Indonesia-based BB Merah Putih to make and distribute BlackBerry-branded devices.
Chief Financial Officer James Yersh was replaced by Steve Capelli from Sybase, a company now owned by SAP SE that BlackBerry Chief Executive Officer John Chen used to run.
BlackBerry’s device business will focus on developing applications and a version of Google’s Android operating system that it can license to other companies.
