BlackBerry reports a surprise operating profit for its fiscal third quarter

BlackBerry reports a surprise operating profit for its fiscal third quarter
With Wall Street expecting BlackBerry to report a loss of five cents per share for its fiscal third quarter 2015 report, the resurgent manufacturer surprised analysts by reporting an operating profit of one cent per share, or six million dollars. However, the company reported lower than expected revenue of $793 million. The consensus forecast called for BlackBerry to report $936 million in revenue.for the three month period.

Despite the positive cash flow and operating profit, BlackBerry reported a net loss of $148 million or 28 cents a share, which was an improvement from the $4.4 billion or $8.37 a share it lost in last year's third quarter. After reporting the earnings on Friday, BlackBerry CEO John Chen, who has been presiding over the company's comeback, said "Sometime in FY 2016 we'll turn profitable, and our plan is once we turn profitable, we'll sustain it."

During its fiscal third quarter, BlackBerry successfully launched its flagship BlackBerry Passport. With its 4.5-inch screen and 1440 x 1440 resolution, the wide display is made for reading spreadsheets, emails and other business documents. The unique QWERTY on the device doubles as a trackpad, and based on what you are writing, certain punctuation, symbols and numbers appear on the screen for the user to tap. The ultimate business machine runs more than a day on a single battery charge. Powered by BlackBerry 10.3.1, the device now features BlackBerry Assistant which is the manufacturers answer to Siri, Google Now and Cortana.

On Wednesday, the throwback BlackBerry Classic was launched, but its results didn't appear in the manufacturer's Q3 report. The Classic is designed for current 'Berry users who love their BlackBerry Bold 9900, but want a device running the latest BlackBerry 10.3.1 OS build. The handset brings back the trackpad and function keys.

During the quarter, BlackBerry sold 2 million phones with 1.9 million going to end-users. The stock closed on Friday at $9.99, off 9 cents a share after CEO Chen said that there is still a lot of work to be done.





source: USAToday

FEATURED VIDEO

26 Comments

1. hkxm8

Posts: 64; Member since: Apr 08, 2012

Well done mr.Chen, well done.

2. SaintHelena

Posts: 397; Member since: Nov 05, 2014

5. Crispin_Gatieza

Posts: 3098; Member since: Jan 23, 2014

Do you know anything about earnings reports? Obviously not since you can't see past one-time chargeoffs. BlackBerry turned a profit, get over it!

7. meanestgenius

Posts: 21485; Member since: May 28, 2014

She clearly doesn't understand what an earnings report is, or the information contained in one. All she knows is the "sensationalist" side of any findings, and anything that remotely spells "doom and gloom" about BlackBerry. Unfortunately for her, her wishes of "death" for BlackBerry will not ever come to pass.

15. Manti123

Posts: 207; Member since: Apr 10, 2014

It is really funny that PA is the only web blog that highlighted the operating profit of BlackBerry (which came from shutting down all Mexico factories, firing more than half of BB employees, cancelling all products advertisements and producing only 3 phones in one year (Porsche is not counted). They forget the main huge facts about this report which are , Net loss of $148 million and the revenue which was $793 million versus analyst predictions of $931 million, that is much down compared to a year earlier, when revenue was $1.19 billion. BlackBerry sold 1.9 million smartphones in the quarter, falling short of the 2.1 million sold in the previous quarter this year and it is keeping falling day by day. It indicates that they are losing much customers (breakdown is exactly the same as last quarter, but 25% drop in revenue), they introduced a new phone, the Passport and it is not selling in a significant number, and the device department isn't doing any good , which predicts the shutdown of the device production completely as John Chen already promised doing so if it wasn't profitable. BlackBerry's results completely belie this fantasy of BlackBerry's resurrection. The Service revenue decline completely undermines a key tenet of the BlackBerry faithful - that enterprise customers will drive BlackBerry's turnaround. The decline in service revenue says that enterprise customers are turning away from BlackBerry. Chen's rationalization is that BlackBerry just needs to figure out how to better monetize its services. Chen was successful in reducing the cost. Actually, you can really reduce the loss of your failed company by not selling and close the doors. THIS IS NOT A GREAT ACHIEVEMENT. I see BlackBerry 10 is the burning platform that Elop refereed to before, and not Symbian or MeeGo. BlackBerry now selling less than 2 million handset in the last quarter which is less than many crappy Chinese companies. Finally, this company is getting smaller and smaller, and it might not report any loss in the next quarters. Because simply, they have nothing to lose any more. BB hit the bottom

19. Crispin_Gatieza

Posts: 3098; Member since: Jan 23, 2014

Your irrational hate for BlackBerry blinds you to the facts. You can spin numbers any way you like, the fact remains that BB is profitable even without sales numbers for the Classic. The agreement with Samsung for their help with Knox hasn't kicked in on the P&L sheets nor have contracts with the German government, Boeing and Picard. It won't be until Q2 of 2015 until we can finally shut you up for good. Until then, troll away 'cause you and the other little girls here are dead trolls walking.

3. meanestgenius

Posts: 21485; Member since: May 28, 2014

Chen and company has done a commendable job once again. For those that say that they haven't, you're just not seeing the bigger picture, as usual... John Chen in response said: “They [investors] are not listening to what I said.” “We told them that this quarter the revenue would be lower, and none of them listened — they jacked their revenue up,” he said. So BlackBerry dumped a lot of the speculative unfaithful uninformed investors. Thank you! Buy time! After the E.R. the stock immediately dropped from 10 to 9.23. I guess they missed the part that BlackBerry had posted a profit that exceeded expectations. I guess they missed the concept that profit is a good thing even if revenue is down , because it indicates that the company is more efficient. I guess they missed the Boeing, Ocean Capital Investments, Nanthealth, Samsung and Secusmart deals. I guess they missed the part that the Classic is already selling better than the PassPort at launch, which was damn good all in itself, demand outselling supply in both cases. I guess they didn’t think long enough to realize that the potential of both of these hot sellers is not even reflected in the Q3 earnings. Mr. Chen blamed the shortfall partly on the unexpected success of the new oversized Passport smartphone as BlackBerry scrambled to meet higher-than-expected demand. The company was unable to deliver all orders in the quarter on time, meaning the revenue from many of the phones will only appear in the fourth quarter. In another welcome development, the response to this week’s launch of the Classic, a smartphone aimed at diehard users, was positive. Unlike recent BlackBerry products, carriers seem willing to promote the new device. hare In a true Tortoise and Hare scenario, the jumpy panicky Wabbit sold out as the slow wise Tortoises began to investigate and dig in to the real news. These are the investors who will win the race. Excerpts, including what John Chen said, taken from my favorite BlackBerry site. Haters are gonna hate, and trolls are gonna troll, but at the end of the day BlackBerry turned a profit and Chen and company have created positive cash flow. BlackBerry is still, and will remain, in business for a very long time to come, despite what the trolls will say. And nothing that they say, no matter how many times or how loud the say it is going to change that. Look for Chen to once again deliver on his word going forward, and keep the company cash flow positive and making a profit. Making a profit on such weak revenue is more than commendable. How many other CEO's today have done that....

4. Crispin_Gatieza

Posts: 3098; Member since: Jan 23, 2014

So much for all the doom & gloom from haters. Funny how every tech site and even main stream media reported this yesterday but PA dropped this article on the weekend cycle. Bias much?

8. meanestgenius

Posts: 21485; Member since: May 28, 2014

EXTREMELY biased. I've said this for months now.

9. Liveitup

Posts: 1798; Member since: Jan 07, 2014

If you're not tech media darlings iOS and Android you'll always be discriminated against by much of the technology media.

12. meanestgenius

Posts: 21485; Member since: May 28, 2014

Absolutely correct.

27. BobbyDigital

Posts: 2124; Member since: May 29, 2014

For once, you and I agree.

6. MSECE

Posts: 2; Member since: Dec 11, 2014

passport did

13. Donbenie

Posts: 255; Member since: Aug 04, 2013

Go! Blackberry, wishing you more success in your endeavours, and this from an Android fan..competition is good for the consumers..

14. Donbenie

Posts: 255; Member since: Aug 04, 2013

Go! Blackberry, wishing you more success in your endeavours, and this from an Android fan..competition is good for the consumers..

16. TruthSpeaker unregistered

Intsagram worth more than Blackberry apparently. World turned to sh*t *rolls eyes*

18. joey18

Posts: 648; Member since: Jul 20, 2010

blackberry wasting time they should make blackberry android mixed

20. meanestgenius

Posts: 21485; Member since: May 28, 2014

Because Android is working so well for Sony and HTC, right?

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.