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.
There’s still a way to go for Blackberry even though it launched a new smartphone earlier this week.
The company turned in a loss of $207 million for its second financial quarter. That’s way less than the $965 million it made in the same quarter last year.
The Canadian company said revenues for the quarter amounted to $916 million – with 46 percent representing hardware, 46 percent services, and eight percent for software and other sales.
Blackberry shifted 2.4 million smartphones to end users and cut down its channel inventory.
John Chen, CEO and chairman of the company said: “We delivered a solid quarter against our key operational metrics and we are confident we will achieve break even cash flow by the end of financial year 2015. “Our workforce restructuring is now complete.”
It said it hoped to maintain its strong cash position in the future and will look for opportunities to “prudently invest in growth”.