Blackberry Q1 net loss widens to US$181 million as class action lawsuit settles



Waterloo, Ontario. Blackberry Ltd. says its net loss has tripled to US$181 million in the first quarter, largely due to the settlement of its 2013 shareholder class action lawsuit over its BlackBerry 10 smartphone.

The Waterloo, Ont., company says it lost 11 cents per diluted share, or 31 cents per diluted share, compared to a loss of US$62 million a year ago.

Excluding one-time items, including a legal settlement of US$165 million, it lost US$31 million, or five cents per share, compared to a loss of US$27 million, or five cents per share, in the previous year.

BlackBerry, which reports in US dollars, says revenue for the three months ended May 31 declined to US$168 million from US$174 million in the first quarter of 2021.

According to financial data firm Refinitiv, the company was expected to report a loss of 13 cents per share and an adjusted loss of five cents per share on US$160.7 million revenue.



In April, BlackBerry settled a lawsuit accusing it of defrauding shareholders by making misleading claims about its BlackBerry 10 smartphone.

“Our performance demonstrates that our operational plans to achieve those goals are starting to deliver results,” John Chen, Executive Chairman and CEO, said in a news release.

Internet of Things revenue grew 19 percent to US$51 million, while cybersecurity revenue grew six percent to US$113 million.

On Wednesday, 55.8 percent of BlackBerry shareholders rejected the company’s offer of executive compensation.

This report by The Canadian Press was first published on June 23, 2022.

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