BlackBerry Ltd, the company that once led the world's "smartphone" market and ruled the corporate mobile e-mail world, posted its financials today for the most recent three months, and they were not pretty. Software and professional services sales were down by 4.7 percent, totaling $101 million for the quarter, and as a result the company missed analyst expectations for revenue by a wide mark.

The news comes as a blow to investors, who had pumped up the price of BlackBerry's stock by about 60 percent over the past three months—largely because people were so bullish on BlackBerry's software sales exploding. Today, the company's share price fell by over 12 percent before close. In fact, the company only turned a profit because of a $940 million payment from Qualcomm to settle arbitration over royalty payments.

In 2016, BlackBerry completely outsourced manufacturing of its phones. Since then, revenues from phone sales have collapsed—totaling $37 million for the quarter ending May 31, compared to $152 million last year.

Given that the company was only profitable for the quarter—netting $671 million—because of the Qualcomm payment, BlackBerry executives' trumpeting of the achievement did little to inspire confidence in the company's continued viability.