BlackBerry Earnings Preview: Software Revenues And EZ Pass Conversions In Focus

While the company managed to beat earnings estimates over the last two quarters by cutting costs, revenues have been falling fast as its service access fee revenues continue to decline with users leaving the platform (BlackBerry projects 15% quarterly service revenue declines). While BlackBerry's financial health is no longer a concern in our view (cashflow of $76 million, cash balance of $3.27 billion last quarter), future earnings growth will depend on replacing fast-declining service revenue ...