BlackBerry sees some positives as turnaround continues - Mobile World Live

BlackBerry sees some positives as turnaround continues

18 DEC 2015

BlackBerry chief John Chen said the company is “stepping up investments to drive continued software growth” and will extend availability of its Priv smartphone as it looks to drive sequential revenue gains.

With regard to the recently announced, Android-powered Priv smartphone, Chen said that it “has been well received since its launch in November, and we are expanding distribution to additional carriers around the world in the next several quarters”.

Priv_Angle8Unusually, in its official statement the company did not provide an update on how many smartphones on which it recognised revenue – meaning it is not possible to see if Priv has provided a short-term uplift.

Announcing its Q3 (to 28 November) results today, the company trumpeted software and services (non-GAAP) revenue of $162 million, up 18 per cent year-on-year and 119 per cent quarter-on-quarter.

It claimed 2,713 enterprise customer wins for the three months.

During the period, BlackBerry completed its acquisitions of Good Technology and AtHoc to bolster its core propositions, with the company reporting $636 million of cash was used in the three months to support these buys.

The company reported a loss for the quarter of $89 million, compared with a prior-year loss of $148 million, on revenue of $548 million, down from $793 million.

Sequentially, revenue was up from $490 million, although the company was profitable in Q2 – after benefiting from some financial adjustments. According to Reuters, this marks its first sequential growth for more than two years.

This quarter, the (non-GAAP) revenue breakdown was 40 per cent hardware and other, 31 per cent service access fees, and 29 per cent software and services.

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Steve Costello

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