BlackBerry Posts Profits for Q1 FY2015

The company says that it managed to sell around 2.6 million devices in the timeframe

By on June 19th, 2014 16:53 GMT

Today, Canadian mobile phone maker BlackBerry has announced its financial results for the first quarter of its fiscal year 2015 and posted a small profit, beating analyst expectations.

The handset vendor has unveiled revenue of $966 (€709) million for the three months period ended May 31, 2014, and has also reported an adjusted loss of only 11 cents per share.

Previously, analysts suggested that the company would end the timeframe with a loss of 26 cents per share, as re|code notes.

According to the company, its GAAP net income for Q1 FY2015 was $23 (€16.9) million, which represents $0.04 earnings per share ("EPS").

However, the company has also included in the aforementioned figure a non-cash income associated with the change in the fair value of the Debentures of $287 (€210.5) million, along with pre-tax restructuring charges of $226 (€166) million related to its CORE program.

When these are excluded, the adjusted loss for the company’s first quarter goes to $60 (€44) million, which translates into $0.11 per share.

"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," says John Chen, executive chairman and chief executive officer of BlackBerry.

"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."

The Canadian mobile phone maker has also revealed that it ended the three months period with $3.1 (€2.27) billion in cash, up from the $2.7 (€1.98) billion registered in the previous quarter.

Additionally, the vendor has announced that it saw revenue on around 1.6 million BlackBerry devices in the timeframe, up from only 1.3 million devices sold in the previous three months period.

"During the first quarter, approximately 2.6 million BlackBerry smartphones were sold through to end customers, which included shipments made and recognized prior to the first quarter and which reduced the Company's inventory in channel," the mobile phone maker adds.

Moving forth, the Canadian vendor expects to increase its sales even more and says that it will be able to maintain its strong cash position. Moreover, BlackBerrymaintains that it is "targeting break-even cash flow results by the end of fiscal 2015."

These financial results are encouraging for the handset vendor and prove that CEO John Chen was right when saying a few months ago that BlackBerry was not dead. However, it remains to be seen whether it will be able to increase sales on today’s more and more competitive market.

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