BlackBerry has reported lower
revenue for the period ending 30 November 2014, reports ITRealms, although it managed to reduce
its net loss for the period.
ITRealms
gathered the company reported a Generally Accepted Accounting Principles (GAAP)
net loss of $148 million about N27742600000.00, including a $150 million
non-cash charge associated with the fair value of debentures and a pre-tax
restructuring charge of $5 million.
According to MobileWorldLive, the loss was less than the prior
quarter’s $207 million, and considerably lower than the $4.4 billion loss in
the equivalent quarter in 2013. The company did however achieve a non-GAAP
profit of $6 million.
Revenue was $793 million, which was
down from $1.19 billion in Q3 FY2014 and the $916 million reported in the
previous quarter.
Around 46 per cent of revenue was
from hardware, 46 per cent from services and 8 per cent from software and other
revenue. Revenue was recognised on two million BlackBerry smartphones.
When discussing the revenue in the
company’s results call, CEO John Chen said “to us it’s not satisfying”.
As well as reducing its loss, the
company reported positive cashflow ($43 million) for the first time in two
years. “We achieved a key milestone in our eight quarter plan with positive
cash flow,” Chen noted.
He added that the company’s focus is
now on expanding distribution and driving revenue growth: “It is my belief that
we can grow and stabilise the company’s revenue in 2016. Sustainable
profitability can only come from revenue growth and that is certainly our
intention,” he said.
Chen said the company worked to
clear its inventory of old devices during the quarter, reducing it by 93 per
cent year-on-year. This will help the company drive uptake of its newer devices
including the Passport and recently-unveiled
Classic (pictured).
“We have a pretty strong device
roadmap going forwards and we will discuss this at Mobile World Congress,” Chen
noted.
The company said it continues to anticipate maintaining its strong cash position while looking for opportunities
to “prudently invest” in growth.
One area of investment is the
Internet of Things (IoT): “I believe the investment we made in our technology
portfolio, as well as investment in infrastructure, will serve to make us the
most complete and integrated platform in the industry for managing IoT
devices,” Chen claimed.
The company also announced it has
completed the acquisition of voice and data encryption company Secusmart, a
deal first announced in July.
Outside headline: story is by Tim Ferguson/MWL
ITREALMS ... delivering news for ICT4D
Pix: Chen of Blackberry displaying BB classic recently
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