06:48 AM EDT, 09/27/2024 (MT Newswires) -- BlackBerry (BB) improved its full-year bottom-line outlook late Thursday as the cybersecurity software company unexpectedly broke even in its fiscal second quarter and reported higher revenue year over year.

The company now expects to report an adjusted loss of $0.02 to $0.05 per share for fiscal 2025, compared with its previous projections for a $0.03 to $0.07 loss. The current consensus on Capital IQ is for a normalized loss of $0.04 a share.

Revenue is set to come in between $591 million and $616 million for the ongoing fiscal year, reflecting a higher bottom end than the prior forecast of $586 million. The Street is looking for $604.3 million. BlackBerry now estimates revenue in its internet-of-things division to be in a range of $225 million to $235 million versus its previous guidance of $220 million to $235 million.

For the three months through August, BlackBerry's adjusted earnings broke even versus a loss of $0.04 the year before, topping the Street's view for a $0.03 loss. Revenue increased to $145 million from $132 million last year, ahead of five Capital IQ-polled analysts' estimate for $140.8 million.

"BlackBerry reached a significant milestone on our path to profitability by recording breakeven adjusted (earnings before interest, taxes, depreciation and amortization) and non-GAAP EPS," Chief Executive John Giamatteo said in a statement. "This result was achieved through a combination of stronger than expected, double-digit revenue growth for both (internet-of-things) and Cybersecurity, as well as tremendous ongoing progress in rationalizing our cost structure."

Revenue in the cybersecurity division improved 10% year over year to $87 million while internet-of-things advanced 12% to $55 million. Licensing and other sales fell to $3 million from $4 million in the 2023 quarter. Operating expenses narrowed to $115 million from $132 million in the prior-year quarter, the company said.

For the ongoing three-month period, BlackBerry anticipates its bottom line to be in a range of a $0.01 loss per share to earnings of $0.01 per share and revenue to come in between $146 million and $154 million. Six analysts surveyed by Capital IQ expect the company to break even while four analysts estimate revenue of $154.2 million.

"We expect a sequential improvement in cash flow for (the third quarter) and for BlackBerry to return to positive cash flow and EBITDA in (the fourth quarter)," Chief Financial Officer Tim Foote said during a late Thursday conference call, according to a Capital IQ transcript.

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