It seems that BlackBerry has turned the corner as it reported a quarterly profit today – results that sent its share price up by over five percent.
Revenues however fell to $550 million for its quarter, down from $793 million in the same period last year. Net profit was £28 million, compared to a loss in the same quarter last year of $148 million.
So what’s BlackBerry doing right? It seems that CEO John Chen is keeping a close eye on expenses but its revenue from software rose 20 percent in the quarter, accounting for $67 million in revenues.
Despite its formerly impregnable position as the handheld of choice for the corporate market, sales of its more up to date models don’t appear to be particularly good.
BlackBerry is attempting to change its model from hardware and services to software.
Wall Street analysts hailed the profit figure but fretted about the revenue, which the company had estimated would be $786 million.
Ingram Micro announced a record quarterly financial for the last months of 2012, driven by its acquisition of BrightPoint and Aptec.
However, it was also this move that cost it money, with the company claiming that restructuring costs as a result of the purchase led a loss in profitability.
For the fourth quarter of 2012 the distie reported worldwide sales of $11.38 billion, a 14 percent rise from the $9.95 billion in the fourth quarter last year.
It said the recently completed acquisitions of BrightPoint and Aptec Holdings had helped contribute approximately $1 billion and $75 million, respectively, to the quarter’s revenues.
Worldwide gross profit also hit an all-time quarterly record of $661.2 million compared with $554.3 million in the same period of 2011.
However, the distie’s operational bottom line wasn’t as positive with the books showing that operating profit dropped by 4.7 percent to $167.9 million.
The company said that this figure was as a result of it gobbling up BrightPoint and Aptec and the $8.6 million in restructuring and other acquisition-related costs.
However, this hasn’t caused the company concern with it predicting worldwide consolidated revenue growth in the low teens, for 2013, which includes the contribution of BrightPoint.
And analysts are also on the same track. Today the company was upgraded by Needham & Company from a “hold” rating to a “buy” rating.