BlackBerry once again reports smaller losses, sells less phones, but shares go up

posted by Peter K. / Sep 26, 2014, 7:46 AM

BlackBerry once again reports smaller losses, sells less phones, but shares go up

It seems that John Chen's plans to transform BlackBerry and bring it back on its feet might be working just fine for the former giant. The Ontario-based manufacturer today released its financial report for the quarter that ended on August 30, and according to it, BlackBerry has seen less losses that initially expected. The net loss for the latest three fiscal months is $207 million, times less than the $965 million that it lost just a year ago. The revenue, one of the most vital financial stats, was $916 million during the second quarter of BlackBerry's fiscal 2015, down from the $966 that it brought back home during the previous accountable period.

The revenue breakdown ("46% for hardware, 46% for services and 8% for software and other") shows that John Chen's internal reconstruction is gravitating towards amping up the device portfolio of the company - during the previous quarter only 39% of the earnings were due to handset sales and 54% were brought home thanks to BlackBerry's software and other services.

"We delivered a solid quarter against our key operational metrics, and we are confident that we will achieve breakeven cash flow by the end of FY15," CEO John Chen revealed. "Our workforce restructuring is now complete, and we are focusing on revenue growth with judicious investments to further our leadership position in enterprise mobility and security, driving us towards non-GAAP profitability during FY16."

Au contraire, the shares of the maker of the squareish BlackBerry Passport reported a 5% overall rise of its shares, which is a good sign towards the balancing of the financial situation at the Canadian manufacturer. In the previous quarter, BlackBerry had sold 2.6 million devices (1.6 million of which brought in revenue), but during the latest one it succeeded in selling “only” 2.4 million units, 2.1 million of which brought in revenue for Waterloo. It' yet to be seen if the BlackBerry Passport will affect the company in a beneficial way.

Excerpts from BlackBerry's financial report for Q2 of fiscal 2015

source: BlackBerry via Reuters

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52 Comments

1. XPERIA-KNIGHT unregistered

Keep up the good work! We need more options and innovation.

posted on Sep 26, 2014, 7:49 AM 14

3. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

They need more marketing and need to price their products cheaper than it's competitors.

posted on Sep 26, 2014, 7:52 AM 3

6. Bozzor

Posts: 248; Member since: May 02, 2012

The easiest thing to do is to price low for higher market share: but that is a road to nowhere, as a lot of Android vendors are finding out now. Blackberry, like Apple, offers a unique hardware and software combination. They are at extreme opposites as to how much success they have had, but really, the whole mobile phone business is now really Apple on a roll at a level no one can touch, Samsung doing well up until recently and now some storm clouds are gathering, some Chinese Android vendors getting a pittance, along with LG...and everyone else bleeding a lot or a little. Chen really has taken on a huge challenge, one which would scare many other potentially fine CEOs. He will go down as one of the greatest CEOs of our era if he manages this.

posted on Sep 26, 2014, 8:19 AM 2

18. jroc74

Posts: 6023; Member since: Dec 30, 2010

"The easiest thing to do is to price low for higher market share: but that is a road to nowhere, as a lot of Android vendors are finding out now." Thats why you offer other services that can make money off the bigger market share. Samsung and Sony seem to understand this, HTC somewhat. But it sold Beats too soon instead of trying to make it better. Amazon knows it very well....offering Prime and the benefits of Prime.

posted on Sep 26, 2014, 11:07 AM 0

32. Kjayhawk

Posts: 294; Member since: Oct 07, 2010

You know theobile industry has changed when Blackberry is the lead innovator while apple and android are just doing the same boring thing, with better spec sheets. I really want to buy this phone but me being a stupid Google fan boy means I'm going to be stuck with the huge Nexus 6...

posted on Sep 26, 2014, 5:22 PM 0

2. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Well, at least things are going smooth right now for BlackBerry. Keep it up, BlackBerry!

posted on Sep 26, 2014, 7:51 AM 4

4. jroc74

Posts: 6023; Member since: Dec 30, 2010

Uh oh.....looks like BB in it for the long haul. Go BB!! (I like rooting for the underdogs too)

posted on Sep 26, 2014, 8:00 AM 0

5. magnum44 unregistered

Keep it steady now ... make a 6 inch touch device ... struck a deal with Google play store ... add my hard earned cash to your revenue ... then sell your options

posted on Sep 26, 2014, 8:07 AM 2

9. moguai

Posts: 6; Member since: Sep 22, 2014

they just need google services: maps, gmail, gdrive, sync... etc and they`re going to be just fine.

posted on Sep 26, 2014, 8:50 AM 0

7. Alex123

Posts: 241; Member since: Oct 17, 2012

It's a good sign for BB. Keep it up but most importantly, price your products to be more competitive please. Z10 is a prototype.

posted on Sep 26, 2014, 8:19 AM 1

8. xtroid2k

Posts: 601; Member since: Jan 11, 2010

Awesome job John. I'm reall pleased at how the ship is getting back on course. I like how John is using Blackberry's uniqness to re-invent the brand as opposed to trying to copy everyone. I solute his decision to not develop android and stick to BB10 platform. This tell me he's confident in his own products. I know Nokia was done when Stephen Elop gave up on Nokia designed Symbian software. John keep going man. I'm rooting for you; I can't speak for anyone else.

posted on Sep 26, 2014, 8:39 AM 2

10. jpd514

Posts: 57; Member since: Nov 08, 2013

Please! Just don't go Android. Keep BB or go Tizen.

posted on Sep 26, 2014, 9:01 AM 0

11. Chuck007

Posts: 1416; Member since: Mar 02, 2014

I wonder if they'd eventually release an Android phone.

posted on Sep 26, 2014, 9:08 AM 0

12. hossamaltarawneh

Posts: 36; Member since: Oct 18, 2013

BlackBerry passport is number 1 in sales at amazon.com keep moving BlackBerry

posted on Sep 26, 2014, 9:26 AM 0

13. Mxyzptlk unregistered

In what category though?

posted on Sep 26, 2014, 9:34 AM 1

15. hossamaltarawneh

Posts: 36; Member since: Oct 18, 2013

Amazon unlocked list ,and it sold out after 6 hours at shop BlackBerry. 200,000 units sold across amazon and Shop BlackBerry

posted on Sep 26, 2014, 10:16 AM 0

14. Pattyface

Posts: 1658; Member since: Aug 20, 2014

This guy is doing quite well imo. Glad to see the stick in the game

posted on Sep 26, 2014, 10:14 AM 0

16. Odiin

Posts: 373; Member since: Apr 23, 2013

All the best Blackberry :)

posted on Sep 26, 2014, 10:50 AM 0

17. BobbyDigital

Posts: 2125; Member since: May 29, 2014

Seems BlackBerry continues to prove the doubters, haters and trolls wrong(I'm looking at YOU Mxy, JBishops, APisskula, JohnNokia, Alan F, BGR, PA and the rest). Great job Chen! Great job BlackBerry! Passport selling out!(200,000 in two days). Chen is definitely the right man for the job. Now I'm just waiting for one of the trolls I mentioned to come trolling along.

posted on Sep 26, 2014, 10:54 AM 4

23. Manti123

Posts: 207; Member since: Apr 10, 2014

It was so much preferable if you kept using the same account Mr. Perfection. Grab a banana .. haw haw

posted on Sep 26, 2014, 1:33 PM 1

24. meanestgenius

Posts: 22520; Member since: May 28, 2014

It so much better when you don't post at all, Nikolasoliver I mean WahyuWinsu, I mean, oh forget it. I never could keep up with your multiple accounts.

posted on Sep 26, 2014, 2:22 PM 1

33. BobbyDigital

Posts: 2125; Member since: May 29, 2014

Hey! Nikolas is back! Or is it Wacky? You have so many accounts it's hard to tell. Now go troll elsewhere.

posted on Sep 26, 2014, 5:34 PM 1

19. meanestgenius

Posts: 22520; Member since: May 28, 2014

Great job on another quarter, Mr. Chen and BlackBerry! John Chen continues to prove the naysayers wrong! Let's point out a few highlights: Cash and investments on hand are UP 11 million to 3.1 million BlackBerry's EZ pass program has brought in a total of 3.4 million NEW licences for BES10, a three-fold increase from last quarter BBM MAU's are up from 85 million to 91 million 2.4 million smartphones were sold, up from 1.6 million the previous quarter BlackBerry beat the "Streets" estimates So, all in all, BlackBerry is DEFINITELY moving in the right direction and is here to stay! I've been saying this on PA for months: John Chen is definitely the man to be in the driver's seat at BlackBerry. To all the haters: You have once again been proven wrong by BlackBerry. Don't you think it's time to stop the hate and the trolling? To BlackBerry: GREAT job once again! Keep up the good work! Onward and upward! Oh!...and the Passport has sold 200,000 units online between the BlackBerry online store and Amazon.com. It sold out at its launch event in Dubai. Great job on that as well! Guess that shoots down the trolls theory of no one wanting to buy the Passport.

posted on Sep 26, 2014, 12:01 PM 1

20. jbishops

Posts: 62; Member since: Aug 12, 2014

Wow 200k phones in a few days big deal. Apple sells 10 million in a weekend and Android sells 500k plus everyday. Blackberry is useless

posted on Sep 26, 2014, 12:09 PM 1

34. BobbyDigital

Posts: 2125; Member since: May 29, 2014

I see APISSkula is back too! Nothing but a troll party going on now! And they sold 200,000 in just under 6 hours nitwit. Get your facts straight. Oh wait!... You're a troll. You don't even know what facts are.

posted on Sep 26, 2014, 5:37 PM 2

21. dcwt2010

Posts: 74; Member since: Feb 01, 2013

Sells fewer phones, not less because it is a countable number.

posted on Sep 26, 2014, 12:40 PM 0

22. jsdechavez

Posts: 816; Member since: Jul 20, 2012

I hope Blackberry does break even in the next quarter and become profitable again. Same goes to Nokia (though MS bought that arm). -Nokia Lumia 1020 and Blackberry Bold 9900 user

posted on Sep 26, 2014, 1:14 PM 0

25. meanestgenius

Posts: 22520; Member since: May 28, 2014

I see some trolls posting that selling 200k phones in two days isn't a big deal. However, considering when said troll doesn't even own a phone and can't tell the difference between and OS and the company that OWNS the OS, I'd say whatever he has to say about BlackBerry is of absolutely no consequence.

posted on Sep 26, 2014, 2:29 PM 1

26. bigcjm

Posts: 57; Member since: Jul 27, 2014

I meant to ask you did you order up a passport yet? I plan on buying one next week. Super excited. I like my one plus but i think ill love my blackberry.

posted on Sep 26, 2014, 3:06 PM 0

40. meanestgenius

Posts: 22520; Member since: May 28, 2014

The Passport is BOSS dude! I missed out on the initial run. I went to order it on Amazon too late, although I am rather stoked that it sold out. I'm planning on ordering again next week as well. Good luck with your purchase of the Passport!

posted on Sep 26, 2014, 5:59 PM 0

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