Blackberry’s first-quarter loss of $42 million smaller than expected as road to profitability gradually showing signs of light

Blackberry has released its latest financial quarter report on Wednesday but the loss was smaller than expected and the company is working hard to restore adjusted profitability.

The company, which currently focuses on the Internet of Things and network security, reported a net loss of $42 million in the first quarter, or 7 cents per share. This is an increase from the $11 million loss in the same period last year, but a narrower loss than the $56 million loss in February this year.

On an adjusted basis, Blackberry reported a loss of 3 cents per share, compared with a profit of 6 cents a year ago. However, the loss was better than analysts expected, with analysts tracked by FactSet expecting a loss of 5 cents per share.

Blackberry shares rose 7% in after-hours trading on Wednesday.

“Blackberry is on track to be non-GAAP profitable and cash flow positive in the fourth quarter,” Blackberry CEO, John Giamatteo, said in a press release.

Blackberry’s revenue for the quarter was $144 million, down from $173 million in February and $373 million a year earlier, but also above analysts’ expectations of $131.6 million.

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“The company is making significant progress towards operational independence and profitability in our IoT and cybersecurity businesses,” said Gianmatteo, adding that revenue from the company’s IoT business grew 18% year-on-year.

For the upcoming quarter, Blackberry expects revenue of $136 million to $144 million and an adjusted loss of 2 cents to 4 cents per share. By comparison, analysts tracked by FactSet expected revenue of $139.7 million and a loss of 3 cents per share.