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BlackBerry Revenue Dips, Shares Fall 8 Percent

Friday, April 1, 2016 7:57
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BlackBerry recorded a smaller than expected loss in its final quarter and posted healthy results for its software and services but sluggish hardware sales caused the Canadian firm’s shares to slide eight percent this morning.

Fourth quarter revenue dipped to $464 million from $660 million in the 2015 quarter, falling far short of Wall Street’s estimates of $563 million.

BlackBerry CEO John Chen

BlackBerry CEO John Chen

The Canadian Smartphone maker also posted a net loss of $238 million, or 45 cents a share, compared to last year’s fourth quarter profit of $28 million, or five cents a share.

CEO John Chen, however, is putting a positive spin on the results, saying the company is well on its way toward becoming a company known not just for its security, but its software too.

“Overall, BlackBerry’s Q4 performance was solid as we made progress on the key elements of our strategy, which are to grow software faster than the mobility software market, achieve device profitability and generate positive free cash flow,” Chen said. “We have clearly gained traction and market share in enterprise software. We more than doubled our software and licensing revenue in Q4 and exceeded our target of $500 million for the full year. Looking to FY 2017, our strategy is on track and our growth engines are in place to continue to generate above market growth in software and achieve our profitability objectives.”

In a call with analysts and shareholders, Chen said sales of its Priv Smartphone were lower than expected, but that was partly due to a holdup in contract talks with some carriers, like Verizon. A soft market for higher-end devices was also a contributor.

On the bright side, Chen said, because of the layoffs and cost-cutting measures the company has undertaken, it now has to sell only three million devices averaging approximately $300 each to stay out of the red in that division. Previously, an additional two million sales would have been needed to break even.

BlackBerry is predicting 30 percent growth in its software and services and a positive free cash flow and adjusted EBITDA for fiscal 2017.


Jennifer Cowan is the Managing Editor for SiteProNews.

The post BlackBerry Revenue Dips, Shares Fall 8 Percent appeared first on SiteProNews.


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