BlackBerry's fortunes looking up with fourth quarter profit
The company said it's now looking to stabilise its business in the coming months
BlackBerry's fourth quarter results show the company is finally on an upwards hike after its move away from consumer devices towards business services - where its roots once lay.
BlackBerry reported a net profit of $28 million (18 million) in its fourth quarter that ended February 28 2015, compared with a year-earlier loss of $148 million (100 million).
Service success made up for almost half (47 per cent) of the profitability, while 42 per cent came from hardware sales - including revenues from sales of 1.3 million BlackBerry smartphones - and 10 per cent from software.
BlackBerry chief executive John Chen said: "Our focus this past year was on getting our financial house in order while creating a multi-year growth strategy and investing in our product portfolio. We now have a very good handle on our margins, and our product roadmaps have been well received."
However, the company's focus will shift in the next year, as it continues to build its user base and make money.
Chen explained on the company's results conference call: "The second half of our turnaround focuses on stabilisation of revenue with sustainable profitability and cash generation."
He said the secret of the company's 2014/2015 success was high margins on its business-centric services that allow organisations, including governments, to securely manage multiple employee devices.
However, BlackBerry's revenues were lower than predicted by analysts who estimated the company would post $790 million (530 million). However, its total revenues came in at $660 million (443 million)
BlackBerry said it will continue making some hardware, including the BlackBerry Leap smartphone that was announced at Mobile World Congress, but it will clearly focus them on business users and startups rather than consumers.
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