Finally, some good news for BlackBerry. The Canadian smartphone maker reported its earnings results for the first-quarter for fiscal year 2015 on Thursday.
To the surprise of many analysts, the company managed to report a small profit — $23 million (or $0.04 a share), thanks to accounting adjustments under GAAP (General Accepted Accounting Principles). Take those adjustments — which were non-cash changes — out of the equation, and the company reported a loss of $60 million or $0.11 a share) for the quarter.
Still, even if you view BlackBerry’s earnings as a net loss rather than a profit, the company is showing signs of a turnaround. CEO John Chen, who took over BlackBerry seven months ago, is effectively stemming the pattern of losses in revenue, handset sales and market perception that have plagued the beleaguered company for the past few years.
The high level financial stats:
- BlackBerry’s cash and investment balance is now at $3.1 billion at the end of Q1 2014, up from $2.7 billion the prior quarter
- Adjusted gross margin is 48%, compared to 43% in Q4 2014
- Recognized revenue on 1.6 million BlackBerry phones
- 2.6 million phones sold to customers; 1 million had previously been recognized/shipped in previous quarters
- Revenue of $966 million, down from $3.07 billion a year ago
Focus in the U.S. is on enterprise
During the company’s earnings call, Chen made it clear that moving forward, the company’s core focus is on the enterprise and “regulated industries.” BlackBerry devices are still popular with consumers outside of the United States, including Indonesia, but in North America, the focus is decidedly on the enterprise and services… see more