CEO Chen upbeat on tech firm’s transition
What a difference a year has made for BlackBerry Ltd.
At this time last year, CEO John Chen hadn’t yet given up on the struggling device business, telling investors at the company’s annual general meeting his top priority was making the segment profitable again. The next day, the company reported a US$670million loss due to a massive writedown of hardware assets.
Fast forward one year to Wednesday’s AGM in Waterloo, Ont., where Chen expressed pride in the transition to software from hardware — BlackBerry abandoned the development of new smartphone hardware last fall — and hinted he’ll reveal a vastly improved financial situation when quarterly results are released Friday. “It’s just going to be good,” he said of BlackBerry’s cash position, which got a US$940-million influx this spring after settling a dispute with Qualcomm.
BlackBerry’s stock price, which has been on a hot streak in the past two months, has increased about 50 per cent since its last AGM. But investors backed off slightly Wednesday, with the stock falling about 0.8 per cent to US$10.65 on the Nasdaq Stock Market.
Chen tempered expectations when it comes to growth in its software businesses this year, stating he expects the company to grow “at or faster” than the estimated market growth rate of 10 to 15 per cent.
He also asked for “patience” when it comes to Radar, BlackBerry’s trailer tracking system for the trucking industry. But he touted BlackBerry’s security acumen, its leading market share for its enterprise software systems and its success in the auto industry.
He called its Ottawa-based QNX software division “the pride of Canada,” noting it is already embedded in about 60 million vehicles.