SHIFTING GEARS
Service, software revenues hit high of $185 million following a shift in strategy
BlackBerry CEO points to ‘transformation’ behind record software revenue,
WATERLOO, ONT.— BlackBerry Ltd. said revenue from its software and services business hit a record in the latest quarter.
The Waterloo, Ont.-based company reported $19 million (U.S.) in net income for its fiscal second quarter, a big swing from the loss reported during the comparable period last year.
Its key software and services revenue for the fiscal second quarter ended Aug. 31 hit a high of $185 million, comprising roughly three-quarters of the total for the period.
BlackBerry CEO John Chen says this metric, as well as the company’s improved margins, is a reflection of “our . . . transformation to a software company.”
“We made great progress in all our key growth initiatives . . . all of these accomplishments position us well for future growth,” he told analysts on a conference call this morning.
BlackBerry has made a strategic shift to producing mainly software and services over the past few years as its smartphones lost market share to Apple Inc. and Samsung Electronics Co.
The company’s profit in the latest quarter amounted to four cents per basic share, reported in U.S. currency. That compared with a year-earlier loss of 71 cents per basic share, or $372 million in total. BlackBerry’s revenue for the three months ended Aug. 31 was $238 million.
“We made great progress in all our key growth initiatives.” JOHN CHEN BLACKBERRY CEO