To everyone’s surprise, the Canadian smartphone manufacturer has produced a quarterly profit. With the company previously losing millions of dollars a year, they may not be hitting top financial charts but at least they are stabilizing.
With their new CEO, John Chen, adding in drastic cost-cutting measures Blackberry reported a $23 million profit in their last yearly quarter. This is compared to their $84 million loss during this time in 2013.
As Blackberry has finally understood that keyboards on phones are a thing of the past, and created the new Blackberry Z and Q phones, they report that 2.6 million phones are in consumers’ hands, which may not be much, but at least its something.
As Chen describes in a statement, “Our performance in fiscal Q1 demonstrates that we are firmly on track to achieve important milestones, including our financial objectives and delivering a strong product portfolio.”
Something Blackberry should understand is that they own the business market. With major US businesses along with the US Government relying on the Blackberry service, having the company fail could have a large effect on those using their service. The consumer market is just a side business for Blackberry.
From the beginning of the year to May 31st, Blackberry returned a total revenue of $966 million. Hardware took 39 percent, services 54 percent, and software 7 percent.
Although Blackberry is far behind Apple and Samsung at least this is a step in the right direction. Chen understands this and even stated when he was brought in as CEO that this isn’t about what Blackberry was, but rather focused “on what Blackberry will be today and in the future.”
“Over the past six months, we have focused on improving efficiency in all aspects of our operations to drive cost reductions and margin improvement. Looking forward, we are focusing on our growth plan to enable our return to profitability,” Chen said.
With Chen in charge, I believe that Blackberry can offer an outstanding comeback and once again be the business phone of the century.
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