BlackBerry revenue falls below a $1 billion

TORONTO - BlackBerry (BBRY) reported a steep drop in profit and revenue as the company struggles to transition itself from a smartphone company to a software business.

The Canadian company said it lost $423 million, or 80 cents per share, on revenue of $976 million -- down from $2.7 billion in revenue the fourth quarter last year. Analysts expected a loss of 56 cents per share on revenue of $1.1 billion.

It's the first time the company has reported less than $1 billion in revenue since late in 2007.

It is the second quarterly results under CEO John Chen, who is deemphasizing the hardware business after last year's launch of the BlackBerry 10 failed to spark a turnaround. The BlackBerry has been hammered by competition from the iPhone as well as Android-based rivals.