BlackBerry loss shrinks, as focus moves to revenue growth

BlackBerry loss shrinks, as focus moves to revenue growth

26 SEP 2014

Troubled Canadian enterprise mobility player BlackBerry narrowed its quarterly loss, as CEO John Chen said the company is “confident that we will achieve breakeven cash flow by the end of FY15”.

“Our workforce restructuring is now complete, and we are focusing on revenue growth with judicious investments to further our leadership position in enterprise mobility and security, driving us towards non-GAAP profitability during FY16,” Chen continued.

The company reported a net loss for the quarter of $207 million, compared with a prior year loss of $965 million, on revenue of $916 million, down from $1.57 billion.

The revenue split was 46 per cent hardware, 46 per cent services, and 8 per cent software and other revenue.

During the quarter, some 2.1 million BlackBerry smartphones shipped, although a slightly greater number – 2.4 million – were sold to end customers, reducing the amount of BlackBerry inventory held in the channel.

The company said that its EZ Pass Program, offering no-cost upgrades to BlackBerry Enterprise Service 10 with a subsequent free upgrade to BES 12, has resulted in a total of 3.4 million BES10 licences issued, a “nearly three-fold” increase from the prior quarter.

With BlackBerry’s renewed focus on the enterprise space, the fact that 25 per cent of licences traded-in for the EZ Pass Program came from competitive mobile device management platforms is encouraging.

Its BBM messaging platform now has 91 million active users, up from 85 million in the prior quarter.

The results came in a week which also saw BlackBerry unveil its flagship Passport smartphone – a device intended to reinvigorate its performance in the high-end enterprise market.

The period also saw BlackBerry restructuring to create its BlackBerry Technology Solutions unit, and announcing its acquisition of Secusmart.

Total cash and investments at 30 August 2014 was $3.1 billion. The company spent $36 million during the quarter, excluding receipts of $47 million related to “non-strategic operations” during the period.

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Steve Costello

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