BlackBerry is forecasting better-than-expected profit and remains confident that its shrinking phone business be profitable again. The Canadian company has shifted focus from its smartphones to software that companies and governments need to manage their mobile devices.

BlackBerry said it expects an adjusted annual loss of around 15 cents per share for fiscal 2017.

Software and licensing revenue was $166 million in the quarter ended May 31. The company had annual software revenue of $527 million last fiscal year and is targeting 30 percent organic growth.

Chief Executive Officer John Chen said better deals with manufacturing partners struck in the quarter helped it to limit exposure to excess inventory and to better manage cash.

"We're at a point where our business is extremely efficient and we no longer really are making any hardware," Chen told analysts on a conference call. "We are really a hardware design house."

The company said it recognized revenue on some 500,000 handsets in the quarter at an average selling price around $290. Chen said it plans to unveil two cheaper Android-based devices in July.

Chen told investors that BlackBerry's top priority this year is making its devices business profitable. He had said a decision would be made by September on the unit's future.

The company posted adjusted profit of $14 million, or nil per share, on adjusted revenue of $424 million. It reported a net loss of $670 million, or $1.28 cents a share, compared with a profit of $68 million, or 10 cents a share, a year ago.