Shares in the software and services firm BlackBerry Ltd (NASDAQ:BBRY) tumbled after its quarterly sales undershot analysts' expectations.
Pre-market the stock was off almost 7% and later dropped almost 11% to US$9.85. This was despite a surprise rise in profits.
First-quarter revenues fell to US$235mln from US$400mln a year earlier and were around US$33mln below the consensus estimate.
Excluding non-recurring items, BlackBerry posted earnings per share of 2 cents; Wall Street expected the company to break even.
The outlook remains unchanged.
The firm did manage to swing to a net profit of $671mln, or $1.23 per share, in the first quarter, from a loss of $670 million, or $1.28 a share, in the same period a year ago.
"In Q1, we made great progress strengthening our strategic position in emerging growth markets, most notably in cybersecurity and the Enterprise of Things," chief executive John Chen said in a statement.
"We secured key design wins in high growth segments of automotive technology, including advanced driver assist, digital instrument cluster and our hypervisor solution. Our ecosystem is growing with Qualcomm and NVIDIA adopting BlackBerry technology for their automotive platforms. ...."
Chen went on: "Our outlook for fiscal 2018 is unchanged.
"We expect growth at or above the overall market in software and services. We also expect to be profitable on a non-GAAP basis and to generate positive free cash flow for the full year, excluding the benefit of the Qualcomm arbitration award."
BlackBerry Revenue:
(First Quarter - Q1)
2014: $3.1 billion
2015: $966 million
2016: $658 million
2017: $424 million
2018: $244 million
— Jon Erlichman (@JonErlichman) 23 June 2017