BlackBerry writes down value of its Spark unit, posts US$636 million Q1 loss

BlackBerry writes down value of its Spark unit, posts US$636 million Q1 loss

WATERLOO, Ont. — BlackBerry Ltd. posted a US$636 million net loss in the first quarter ended May 31, as it recorded a non-cash accounting writedown related to its BlackBerry Spark unit.

The company, which reports in U.S. currency, said the loss amounted to $1.14 per share.

That included a $594-million goodwill impairment primarily related to BlackBerry Spark, which provides tailored cybersecurity options for enterprises.

Revenue was $206 million, down from $247 million in the first quarter of fiscal 2020.

Under BlackBerry’s non-GAAP measures, it earned two cents per share with $214 million of revenue. including $8 million that can’t be recognized under U.S. accounting rules.

Its stock closed at $6.69 on the Toronto Stock Exchange and US$4.92 on the New York Stock Exchange. After the earning’s report, the shares fell to US$4.83 in after-hours trading.

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The Canadian Press

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