News by Luke Jones on Monday March 30, 2015.
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It was widely predicted by analysts that BlackBerry would record a dire fourth quarter. However, just like during the third period, the Canadian company confounded those predictions and shocked Wall Street with a profit of $28 million for its Q4 ending February 28th.The result is a huge improvement year on year as during the same period 2013/2014 the company recorded a huge $148 million loss. This time the figures show that BlackBerry is truly on the rebound, with $20 million profit once one time situations are removed. The profit works out to 4 cents per share. Analyst predictions had pointed to a loss of 4 cents per share, not a reversal of that. However, hardware sales are still not progressing and the company is looking to other avenues to bring in the bulk of its revenue. In fact, BlackBerry shifted just 1.6 million smartphone units around the world over the three month period. BlackBerry CEO John Chen (who continues to deserve plenty of credit) said that the company will now look to increase overall revenue, "Our financial viability is no longer in question. We're now turning our attention to revenue stabilization". Revenue for the quarter was $660 million, below the $793 million from last year and less than the $786.4 million, so the company is clearly bettering margins but wants more revenue. Software revenue did increase to $67 million, a rise of 20% and a possible pointer as to why BlackBerry is apparently considering becoming a software company. That could be closer to happening than many think because hardware revenue declined 22%, although I expect plenty more devices from the company despite rumors.
BlackBerry continues to do a good job controlling operating expenses and eliminating its cash burn during its business transition, but the total revenue was still a big miss and we still have concerns about the demand side."-Brian Colello, analyst, Morningstar
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at degree level before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news, as well as overseeing the site's content and direction.