Blackberry is sinking following its quarterly results despite getting a big boost from its arbitration win against Qualcomm (BBRY)

pulse

June 23, 2017 2:57 PM

Blackberry only turned a profit because of an arbitration agreement, and investors are punishing the company for it.

BlackBerry Chief Executive John Chen uses a Passport smartphone following the official launch event in Toronto

Blackberry's stock price is dropping, even though the company turned a profit in the first quarter.

Shares were up 3.85% Thursday, before first quarter earnings were released, and lost that gain entirely in early trading on Friday, opening down 5.16%.

The company reported earnings of $0.02 per share, compared to an estimated zero, but revenue fell to $235 million from $400 million from the year before.

The company outsourced the manufacturing of Blackberry hardware in late 2016 in order to focus on software and services.

Thanks to a $940 million arbitration payment from Qualcomm, Blackberry recorded a profit of $671 million in the first quarter, compared to a loss of $670 in the last year.

Blackberry is up about 50% this year, not including Friday morning moves.

pulse