BlackBerry the firm which was once known as a mobile handset provider has reported an increase in its revenue from software and services for the third quarter ending 30 November 2016.
Software sales went up by 16% to $160m in the quarter compared to the revenue recorded in the previous quarter.
While software sales accounted for 55% of its total revenue in the quarter, 23% of the company’s revenue came from Mobility Solutions.
BlackBerry executive chairman and CEO John Chen said: “BlackBerry is now a software company and the market leader in mobile security.
“We achieved significant milestones in Q3, delivering the highest gross margin in the company’s history for the second consecutive quarter and continuing to transform our infrastructure and operations to support an enterprise software business.
John Chen, Blackberry
The company expects to record 30% growth in its total software and services revenues for the full fiscal year.
It said that nearly 80% of the third quarter software and services revenue, excluding IP licensing and professional services, was recurring.
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In the third quarter, Ford Motor Company signed an agreement for expanded use of BlackBerry’s QNX and security software.
Blackberry had also entered into a long-term, global software licensing agreement with TCL Communication to design, manufacture, sell and support its new mobile devices.
Chen said: “As the number of mobile-connected devices continues to proliferate, we expect growing demand in our areas of strength, including security and embedded software.
“The recent agreements with Ford and TCL are positive proof points on our value proposition in these emerging growth areas. We have a pipeline of opportunities to continue our momentum.”
However, its overall revenues fell to $289m in the three months from $548m in the same period a year earlier.
Its losses also widened to $117m in the quarter compared to $89m in the year-ago quarter.
BlackBerry opened its Autonomous Vehicle Innovation Centre (AVIC), a testing site for connected and autonomous vehicles in Ottawa city, Canada.
At the centre, BlackBerry plans to develop software for connected and self-driving vehicles, independently and in collaboration with partners in both private and public sector.
