Blackberry (TSX:BB)(NYSE:BB) stock was up 13.94% at the bottom of the noon hour on March 29. The company released its fiscal 2019 fourth-quarter this morning.
Annual revenue for the 2019 fiscal year dropped 3% from fiscal 2018 to $904 million. Revenue in the fourth quarter rose 9% year-over-year to $255 million. Blackberry’s intellectual property (IP) and licensing revenue surged 71% to $99 million. The company reported a profit of $51 million or $0.08 per diluted share compared to a loss of $10 million or $0.06 per share in the prior year.
There are concerns about the volatility of its IP and licensing revenue, but CEO John Chen has projected that the company will achieve about $270 million in IP and licensing revenue for fiscal 2020. Once again Blackberry expects this segment to gain strength in the latter half of the fiscal year.
Blackberry will be giving Cylance its own revenue stream, headed by its founder Stuart McClure. Blackberry’s acquisition of the AI technology and cybersecurity company closed for $1.4 billion in February. John Chen said that he expects to see revenue growth in the 25% to 30% range from the division in fiscal 2020.
This is a very solid quarter for Blackberry, and this has been reflected in the stock price. Shares are now trading at the high end of its 52-week range. Investors who bought under the $10 mark several months ago may want to consider taking profits. Those with a favourable time horizon should look to hold on to the stock as its top segments are well-positioned for major growth going forward.
