BlackBerry head John Chen said that the company has “a very good handle on our margins, and our product roadmaps have been well received”, as the recovering company’s focus now shifts to “stabilisation of revenue with sustainable profitability and cash generation”.
It reported a profit for the quarter (its fiscal Q4) of $28 million, compared with a prior-year loss of $423 million, on revenue of $660 million (well below Wall Street expectations of $786.4 million), down from $976 million. On an operating level, it narrowed its loss to $106 million from $537 million.
The company saw investment income of $115 million related to the sale of its stake in the Rockstar patent venture.
It noted that in the quarter to 28 February 2015, it saw a “normalised positive cash flow” of $76 million, compared with $784 million cash used in the same quarter last year.
BlackBerry also had a cash and investments balance of $3.27 billion at the end of the period, up $608 million year-on-year, and “matching the highest balance in company history”.
Revenue breakdown for the quarter was approximately 42 per cent hardware, 47 per cent services, and 10 per cent software.
Software revenue was up 20 per cent year-on-year to $67 million, an encouraging move given the company’s ongoing transition to a more software-driven revenue stream, away from its more traditional hardware- and services-driven model.
During the quarter, it recognised hardware revenue on approximately 1.3 million BlackBerry smartphones – with approximately 1.6 million sold through to end customers.
As the company refreshed its devices portfolio, it has also seen its average selling price increase to $211, compared with $180 in the earlier sequential quarter.
BlackBerry noted a number of positives for the fourth quarter, including the launch of its Classic smartphone, a partnership with Google to support Android for Work, and completion of its Secusmart acquisition.
For the full year, net loss was $304 million, compared with $5.87 billion in the year to March 2014, on revenue of $3.34 billion, down from $6.81 billion.
The stock fell 2.5 percent to $9.07 in premarket Nasdaq trading.