BlackBerry Fourth-Quarter Earnings Surprise Investors

by Istvan Fekete on March 30, 2015

BlackBerry reported a surprise quarterly profit on Friday and said it is looking forward to a bright future, which includes ending the slide in revenue with the end of this fiscal year.

“Our financial viability is no longer in question. We’re now turning our attention to revenue stabilization,” BlackBerry Chief Executive John Chen said in a conference call.

John Chen took over the bleeding company at a time when rumours of a Samsung takeover had surfaced. The rumours turned out to be false (just like earlier this year when they surfaced again), as Chen has done a tremendous job with his two-year turnaround plan.

He plans to slow down the hardware division – which makes sense, since BlackBerry isn’t able to recoup the market share it has already lost to Android and iOS – while maintaining the smartphone line of the company and putting more focus on the small, high-margin software division. Chen plans to conquer the enterprise market with Blackberry’s mobile device management product that allows companies and government agencies to manage multiple employee devices.

For the fourth quarter of fiscal 2015, revenue was up, driven by the popularity of BlackBerry’s software products, which includes the QNX operating system used in everything from cars to reactors.

In numbers: BlackBerry reported net profit of $28 million for the fourth quarter, which ended on February 28. This compares to a loss of $148 million reported for the same period a year earlier. Revenue dropped to $660 million from $793 million, below estimates of $786.4 million.

“BlackBerry continues to do a good job controlling operating expenses and eliminating its cash burn during its business transition, but the total revenue was still a big miss and we still have concerns about the demand side,” said Morningstar analyst Brian Colello.

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Written by: Istvan Fekete. Follow by: RSS, Twitter, Facebook, or YouTube.

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