The Strategist

BlackBerry’s new strategy bears fruit as the revenue goes up

09/29/2017 - 11:15

BlackBerry’s quarterly results exceeded the forecasted figures. In addition, the company improved its annual revenue forecast against the background of record sales of the software division, writes Reuters.

لبصراوي via flickr
لبصراوي via flickr
Canadian company BlackBerry, which last year stopped selling its own smartphones, focusing on the sale of software, reported a quarterly profit of $ 0.05 per share compared to breakeven a year earlier.

Revenue for the quarter that ended August 31 fell from $ 352 million a year earlier to $ 249 million. At the same time, the figure slightly increased compared to $ 244 million in revenue in the previous quarter.

Analysts predicted that BlackBerry's profit will be zero, and revenue will be $ 220 million. Net quarterly profit was $ 19 million, or $ 0.04 per share. Revenues of the software division grew to a record $ 196 million for the previous quarter, exceeding forecasts of analysts at $ 174-176 million.

As a result of the financial year, BlackBerry forecasts revenue of $ 920- $ 950 million and a positive profit per share, excluding restructuring expenses.

The Canadian company hopes to achieve revenue growth of 10-15% in the software segment in the financial year, which ends in late February.

It seems that BlackBerry still managed to find itself in a modern highly competitive high-tech market. Previously, the company produced smartphones with its own operating system, but eventually lost the battle with Android and iOS gadgets.

One bad quarter was replaced by another period of financial losses, the company was cutting staff, trying to focus on the corporate sector, relying on the security of its gadgets, but all to no avail - the share of smartphones was rapidly declining.

As a result, the management surrendered: the company announced that it would no longer independently produce mobile devices under its brand, but focus on software, becoming, in fact, a software company. And, it seems, the strategy is bearing fruit: BlackBerry began to come out of losses.