Published in Mobiles

Blackberry posts profit shock

by on30 March 2015


We are juiced up after all

The cocaine nose jobs of Wall Street choked on their double expresso lattes this morning after hearing that the much written off BackBerry posted a surprise quarterly profit.

The outfit has been pushing to end a slide in its revenue in this fiscal year.

BlackBerry Chief Executive John Chen said on a conference call that the company's financial viability is no longer in question. The outfit is now turning our attention to revenue stabilisation..

Chen plans to grow BlackBerry's small but high-margin software division by moving more customers onto its products, including a system that allows companies and government agencies to manage multiple employee devices.
Shares rose as high as $9.77, before easing to $9.59, up 3.1 percent on the Nasdaq, despite a much bigger-than-expected decline in fiscal fourth quarter revenue.

BlackBerry investors cheered the unexpected quarterly profit and solid growth in revenue from software products, which includes the QNX operating system, used in everything from cars to reactors.

Chen said while the average analyst estimate of a small per-share loss in the current quarter looks reasonable "we do intend to do better."

BlackBerry reported net profit of $28 million in the fourth quarter ended Feb. 28. That compared with a year-earlier loss of $148 million.

Quarterly profit was $20 million, and Analysts, on average, looked for a loss of 4 cents a share.
Revenue, however, slid to $660 million from $793 million, well below estimates of $786.4 million.

Last modified on 30 March 2015
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