Forgot your password?

BlackBerry Earnings Results Shows a Ray of Hope


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

3 total comments on this postSubmit your comment!
  1. I don’t think that a turn around will take place until BlackBerry finally begins marketing their products well and continues all touch sales – wit state of the art specs.

    • dpr, I cannot agree more! That whole shift back to BB7 is a serious mistake and points directly to a lack of marketing on BB10.

      I know some might suggest otherwise, but that silly Superbowl ad was only a preview and should have been followed up with a series of TV ads – how cool BB Balance is, how amazing the typing experience is on a touch screen device, how the timeshift camera feature works, how rocking the entire gesture based OS is. I could go on and on to include BBM and talk about the wonderfully sharp and crisp display (larger and a higher DPI than Apple’s renowned “retina” display).

      *** BBRY has to make a compelling case for BB10 to the end user! In a new world of BYOD, that end user is not just the CIO in the enterprise but every working individual out there. After 12 months, they have yet to do so. ***

      The bottom line is they just can’t seem to figure out how to sell the awesome stuff they do have. Apple isn’t a technology firm – they’re a marketing powerhouse! They make a strong case to sell me on the iPhone because of how amazing their earbuds are – an entire TV ad about these seemingly simplistic earbuds! Indeed, they do build a compelling case for the iPhone – if the earbuds alone are so brilliant (as the ad suggests), the iPhone must be too! And, hey, those awesome earbuds come with the iPhone! These earbuds may not have been be the best out there, but after watching the ad, I was impressed!

      BlackBerry cannot try to live in the past with BB7. The only reason it is selling more than BB10 devices is because people don’t know much about it or what it can do! Fundamentally, it is different and that has not been demonstrated or shown in any TV ad – why not show how quickly you can multitask, or how fast or how accurate you can type on it? All most folks know of BB10 is that it cannot do the impossible (as seen in the Superbowl ad).

      With Chen building more BB7 phones, folks around the world will compare BB7 phones with the latest Androids and BlackBerry will be quickly forced out of the device market. It is a recipe for disaster.

      • Exactly! BlackBerry must look to the future, not live in the past. Fortune favors the bold; be bold BlackBerry.

BlackBerry© is a registered Trademark of BlackBerry Limited. BerryReview is in no way affiliated with BlackBerry Limited though sometimes their lawyers send us love letters...

Copyright © 2007-‘2016’ BerryReview LLC