Licensing Fuels BlackBerry's Quarterly Revenue
BlackBerry's fourth-quarter results were boosted by strong gains in licensing revenue.
The former phone maker reported sales of $99 million from its segment that distributes licenses for its existing patents to other businesses. That was a 71 percent increase over the previous year and helped boost total revenue 8 percent on an adjusted basis to $257 million.
The company's software and services revenue hit a record $248 million on an adjusted basis, according to a statement Friday. That’s up 14 percent from a year earlier.
Under Chief Executive Officer John Chen, BlackBerry left its phone-making days behind, pegging its new identity to security software. The company offers a range of different product lines, such as systems to manage an entire stable of mobile phones, or to let cars securely update their entertainment systems.
The company expects revenue to grow between 23 percent and 27 percent in fiscal year 2020, driven by a double-digit increase in billings, Chen said on the earnings call.
BlackBerry’s BTS segment, which includes its autonomous vehicle technology, is set to grow faster than the company’s content management software business, according to Chen.