BlackBerry 2Q18 earnings show big fees from TCL and other licensees
BlackBerry has let go of its hardware unit in exchange for licensing deals and some stable money. So far, it is only somewhat paying off.
For the second fiscal quarter ending August 31, the company reported net income of $19 million — operating income was recorded at $22 million off of $238 million gross revenue, about flat year-to-year. Barring an $815 million arbitration reward from Qualcomm, the company would have lost $279 million last quarter.
The transition from making its own smartphones is has been somewhat rough: licensing, intellectual property and other revenue is now at $56 million — up by $40 million a year ago and up $14 million from last quarter. Handheld device revenues have fallen to $16 million — down $89 million from 2016 and down $21 million since spring. Enterprise software and services recorded an 8 percent rise to $91 million.
Per share, analysts were expecting zero, but the company was able to produce 5 cents of profit.