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.