Re­mak­ing Black­Berry

Daily Freeman (Kingston, NY) - - BUSINESS -

Black­Berry is a step closer to hang­ing up its hand­set and trans­form­ing into a soft­ware and se­cu­rity com­pany.

The be­lea­guered Cana­dian com­pany re­cently said it would out­source the man­u­fac­tur­ing of its smart­phones to fo­cus on po­ten­tially more prof­itable busi­nesses such as soft­ware.

An­a­lysts have long spec­u­lated that Black­Berry will ul­ti­mately put an end to its money-los­ing hard­ware busi­ness. Mean­while, it’s looked to ac­qui­si­tions to boost its se­cu­rity soft­ware of­fer­ings; for in­stance, it bought mo­bile se­cu­rity provider Good Tech­nol­ogy late last year for $425 mil­lion.

CEO John Chen says the com­pany has reached a turn­ing point in its trans­for­ma­tion and is start­ing to reap the ben­e­fits of those deals. In the June-August quar­ter, rev­enue for soft­ware and services more than dou­bled from the pre­vi­ous year to $156 mil­lion, while the di­vi­sion that in­cludes the hard­ware saw rev­enue cut by half to $105 mil­lion. Chen adds that Black­Berry re­mains on track to re­port 30 per­cent rev­enue growth in soft­ware and services for the full fis­cal year, which ends in Fe­bru­ary.

But an­a­lysts warn that work still needs to be done to fully in­te­grate the re­cent ac­qui­si­tion, which could af­fect near-term growth.

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