Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Mobile Tech
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
BlackBerry Still Losing Money, Yet Optimistic
BlackBerry Still Losing Money, Yet Optimistic

By Barry Levine
March 30, 2014 5:32PM

    Bookmark and Share
Pleased that his company lost less money than expected, it seems that BlackBerry CEO John Chen is taking his company back to the future. The handset maker is planning to relaunch its older BlackBerry 7 OS and roll out new phones that focus on BlackBerry's classic feature -- the physical keyboard.
 



BlackBerry is still refining its business strategy as it attempts to return to profitability after several troubled years. On Friday, John Chen, the Canadian company's chief executive, clarified that BlackBerry is still interested in selling smartphones at the same time it makes further headway into related markets for software and services.

Chen, the former head of Sybase, became CEO of BlackBerry four months ago, facing numerous challenges to bring the struggling company back to profitability.

In an earnings call covering fourth quarter results for fiscal 2014, which ended March 1, Chen told investors that his company is intending to relaunch its older BlackBerry 7 OS. "I hope nobody thinks we don't take seriously the handset business," he said.

In fact, Chen told news media that new phones will be released in the next 18 months that emphasize BlackBerry's classic feature, the physical keyboard. Chen told Canada's CBC News that at least three different next-gen, "keyboard-centric" phones are currently in the works.

BBM for Desktops

Chen's sentiments follow indications late last year that the company was steering itself toward software and related services, such as its mobile device management (MDM) suite, the QNX operating system for cars, and its popular BlackBerry Messenger (BBM) service.

The company's Q20 phone was shown at the annual Mobile World Congress trade show in Barcelona last month, and is expected to go on sale by the end of this year. It includes a "classic" keyboard, and features the return of commands keys like Menu or Send.

Chen has also said that BlackBerry is considering bringing BBM, which now has over 80 million users and half a million chat rooms, to desktop computers. The instant messaging service is highly popular among smartphone users, and the company is interested in expanding its reach toward the growing social business segment currently populated by the likes of Microsoft's Yammer. An enterprise-oriented BBM Protected, designed for the stringent needs of regulated industries, was announced last month.

The CEO has mentioned the possibility that business users could begin chats on their PCs and then continue the same chats on their mobile devices, without interruption. Last month, the company promised to make BBM available for Windows Phone and Nokia's upcoming line of X phones. In addition to BlackBerry phones, BBM became available last year for iOS and Android devices.

Fiscal 2016 for Turnaround

Meanwhile, the company reported Friday that its loss for the fourth quarter was $423 million on revenue of $976 million. That's a huge loss, of course, but still less than expected. Chen told analysts that, in light of the ongoing turnaround efforts, he was "obviously extremely pleased" with the results and with the company now being back in "execution mode." Yet, last year for the same quarter, BlackBerry showed a profit of $98 million on revenue of $2.7 billion.

The revenue breakdown for the most recent quarter was roughly 56% from services, 37% from hardware, and 7% from software and other sources. The relatively small percentage of income from hardware could indicate that there's still plenty of room for growth if BlackBerry can regain its foothold selling keyboard handsets.

To help achieve the much-needed turnaround, BlackBerry has been aggressively cutting its costs through such measures as reducing its workforce by one-third, and outsourcing its production to manufacturer Foxconn. BlackBerry has already sold its U.S. headquarters, and is planning to sell much of its real estate in Canada.

At the March 28 briefing in the company's Waterloo, Ontario headquarters, Chen told reporters that the financial turnaround won't happen this year. He foresees it will more likely be in fiscal 2016, which begins April 1 next year.
 

Tell Us What You Think
Comment:

Name:

Gautam Ghosh:

Posted: 2014-04-16 @ 11:16am PT
Any Mobile manufacturing company focuses specially on India, because of its huge market potentially. Make utility softwares free and cutoff rates on BBM Plans with ISP,mark my word it will run in big profit in few months

chandani singh:

Posted: 2014-04-13 @ 4:25am PT
They should not give up. I love BlackBerry software. They should spend some money in advertising and marketing for sure!!



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Mobile Tech
1.   Nvidia Revamps Shield as Game Tablet
2.   Apple Smart Watch Patent Surfaces
3.   iPhone 6: Bad for Apple Tablet Sales?
4.   GoTenna: Work-Thru for Dead Zones
5.   Nokia X Phones Had Identity Crisis


advertisement
Android SMS Worm on the Loose
Malware lets bad actors cash in.
Average Rating:
Review: Microsoft's Surface Pro 3
Is it a tablet and laptop replacement?
Average Rating:
iPhone 6: Bad for Apple Tablet Sales?
Most likely, it will be a huge hit.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
34 European Banks Hit by Android-Skirting Malware
Criminals have been finding gaping holes in Android-based two-factor authentication systems that banks around the world are using. The result: 34 banks in four European countries have been hit.
 
New Web Tracking Technologies Defeat Privacy Protections
Recently developed Web tracking tools are able to circumvent even the best privacy defenses, according to a new study by researchers at Princeton and the University of Leuven in Belgium.
 
Juniper DDoS Solution Aims at High-IQ Networks
In the face of more complex attacks, Juniper Networks is boosting its DDoS Secure solution to help companies mitigate the threats with more effective security intelligence throughout the network fabric.
 

Mobile Technology Spotlight
Nvidia Revamps Shield as an Android Game Tablet
Going after hardcore PC gamers, Nvidia is releasing a gaming-focused tablet that works with a controller. The Shield Tablet follows the Shield Portable gaming handheld Nvidia released last year.
 
Apple Patent for Smart Watch Comes to Light
Does a new smart watch patent issued to Apple provide a preview of the expected wearable from the tech giant? Some Apple-watchers are parsing the patent for signs of the coming product.
 
Will iPhone 6 Cannibalize Apple's Tablet Sales?
Could Apple’s iPhone 6 -- it’s so-called super-size phone due to hit store shelves this fall -- come back to haunt the smartphone maker? Some observers say yes; others say preposterous.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.