BlackBerry released earnings for its fourth quarter of fiscal year 2013 this morning. It reported revenue of $976 million; this is the first time the company’s revenue went below $1 billion since 2007. BlackBerry also reported a loss of $423 million, or 8 cents a share, but this is much lower than analysts’ expectation of 55-cent loss.
Anyway, credit goes to John Chen, the CEO who came on board last November, for his being good at cutting costs. He accelerated the layoffs of employees, farmed out some phone development, and sold the company’s real estate properties. “BlackBerry is on sounder financial footing today with a path to returning to growth and profitability,” Chen said in a statement.
According to the New York Times, Jack Gold, the principal analyst at J. Gold Associates, said he was cautiously optimistic about Mr. Chen’s strategy. “This clearly is not a slam dunk for BlackBerry, but it’s probably the best place for him to get revenue in the short term.” Patrick Moorhead, the principal analyst at Moor Insights and Strategy, also believes BlackBerry has their best chance to rebound.
BlackBerry’s early success came from its security software services that benefits corporate and government information technology departments. BlackBerry Enterprise Server software allows companies and the government to better manage their employees’ work phones and remote shut down phones to protect the information if necessarily.
“There is a need for [John Chen] to strongly articulate why BlackBerry matters.” Said John Jackson, a mobile data analyst at the research company IDC. It’s a difficult job for Mr. Chen to convince corporations that BlackBerry’s software is a shrewd investment.
What do you think of BlackBerry’s future? Will BlackBerry bring back its glory in the mobile market?
Photo Credit: The Verge