Strong software revenue sees BlackBerry losses shrink

Strong software revenue sees BlackBerry losses shrink

Canadian smartphone manufacturer BlackBerry has seen its quarterly losses shrink on the back of higher software revenue.

Despite a number of high-profile releases over the last few years, BlackBerry has endured various financial difficulties, with its share in the smartphone market shrinking in the face of stiff competition from Apple and Android.

Although BlackBerry remains in the business of manufacturing new smartphones, its difficulties in the hardware market have led it to focus more on software offerings over the last few years.

It seems the strategy is beginning to pay off, with the company's latest quarterly results showing it made a net loss of $28 million (£18 million) over the three months to the end of May.

While that was a bigger loss than analysts had previously anticipated, it was still well below the $60 million loss made a year ago.

Software has undeniably been the main driver, with revenue for that arm of the business more than doubling compared to the same period last year to reach $137 million.

Total revenue for the period was a little more disappointing, coming in at $658 million, slightly lower than the previous quarter.

However, the company insists it is still on track to achieve its long-term goals.

"Our performance in [the first financial quarter] demonstrates that we are firmly on track to achieve important milestones," said Blackberry chief executive John Chen.

"Looking forward, we are focusing on our growth plan to enable our return to profitability."