14 DAY TRIAL // BlackBerry’s road to perdition seems to be traversing some greener pastures for the time being, as the company announced its revenue covering the period of three months leading to November 29.
The numbers aren't exactly truly positive, but they aren't horrible either. BlackBerry announced its fiscal Q3 2014 earnings and surprise, surprise the company posted a profit of $0.01 per share.
BlackBerry is still sinking
The estimate was $0.16 per share, so BlackBerry outdid itself. And compared to the abysmal loss of last year’s $0.67 per share, we can't help but feel the company’s officials deserve a tap on the back. Right?
Well, not exactly. BlackBerry still has a lot to work on. The company’s revenues came in at only $793 / €646 million on the quarter, thus missing the estimate of $945 / €770 which analysts were expecting.
The results also represent a pretty big decline from Q3 last year, when BlackBerry posted a revenue of $1.2 / € 0.98 billion.
What’s more, the company only managed to push 1.9 million smartphones in Q3, which is about the same number as a year before. Since the company had a major product launch (the BlackBerry Passport went official) during the period, the outcome is pretty disappointing.
BlackBerry has been trying to turn itself into a company focused more on services, in its desperate attempt to maintain itself afloat. However, the news isn't good in this department either, as the company saw services revenue fall with 42% year over year.
However, not everything has to be painted in bleak colors. As we already mentioned, the company’s cash balance, which makes up 60% of the total market cap increased from $43 / €35 million to $3.1 / €2.53 billion.
“We achieved a key milestone in our eight quarter plan with positive cash flow. We also attained another important milestone in the release of our new enterprise software products and devices,” said the company’s CEO John Chen.
BlackBerry continues to have faith in its power
The company continues to remain optimistic while the future is concerned, saying it anticipates break-even or improved cash flow from its future operations.
Not so long ago BlackBerry introduced the Passport smartphone and just this week the Classic smartphone went official.
BlackBerry hopes to attract die-hard fans with the Classic handset which brings back the famous physical QWERTY keyboard, smartphones from the golden BlackBerry era were used to be known for.
The company is also expanding its distribution capability in anticipation of great demand for the Passport and Classic smartphones. However, the effects of this strategy won’t be visible now but are anticipated to appear until at least March.
