The Waterloo, Ontario-based company is focused on expanding sales of software products, including to automakers and other manufacturers, after largely ceding the smartphone market to rivals including Apple (aapl), Alphabet's (googl) Google and Samsung Electronics (ssnlf).
BlackBerry also said the first-quarter drop was due to a decline in professional services, which went from $27 million in the fourth quarter to "almost nothing" in the first quarter.
The company reported revenue on adjusted basis of $244 million for the quarter ending May 31, missing analysts' estimates of $264.5 million, according to Thomson Reuters I/B/E/S.
Profit in the same period totaled $671 million, or $1.23 per share, compared with a loss of $670 million, or $1.28 per share, a year earlier.
"This is a big disappointment for the stock and likely to cast a pall on the sustainability of the turnaround," said Tim Ghriskey, chief investment officer with Solaris Asset Management who helps manage $1.5 billion.