Blackberry is sinking after turning a profit only because of its big arbitration win against Qualcomm

Thomson Reuters

BlackBerry Chief Executive John Chen uses a Passport smartphone following the official launch event in Toronto

Blackberry's stock price is dropping, even though the company turned a profit in the first quarter.

Shares were up 3.85% Thursday, before first quarter earnings were released, and lost that gain entirely in early trading on Friday, opening down 5.16%.

Complimentary Tech Event

Transform talent with learning that works

Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

The company reported earnings of $0.02 per share, compared to an estimated zero, but revenue fell to $235 million from $400 million from the year before.

The company outsourced the manufacturing of Blackberry hardware in late 2016 in order to focus on software and services.

Thanks to a $940 million arbitration payment from Qualcomm, Blackberry recorded a profit of $671 million in the first quarter, compared to a loss of $670 in the last year.

Blackberry is up about 50% this year, not including Friday morning moves.

Click here to watch Blackberry's stock price live...

Markets Insider