Blackberry losses shrink as software revenues rise

The company made a net loss of $28m (£18m) in the three months to the end of May, a bigger loss than analysts had expected, but less than the $60m loss it made a year ago.

BlackBerry shares initially spiked on Tuesday morning after the company showed slower revenue loss than in the past and announced a licensing deal with Cisco.

Shares rose more than 8% as a slide in revenue showed signs of slowing, the BBC reports.

Crucially for the firm, revenues from its software business more than doubled from a year ago to $137m.

Blackberry has been focusing on software and services in a bid to move away from its reliance on handsets.

It reported total revenue for the period of $658m, slightly lower than the previous quarter.

Blackberry chief executive John Chen said: “Our performance in the first financial quarter demonstrates that we are firmly on track to achieve important milestones.”

“Looking forward, we are focusing on our growth plan to enable our return to profitability,” he said.