1. morfinpower's Avatar
    OTTAWA BlackBerrys introduction of two phones aimed at its traditional base of corporate users failed to reverse the companys slide in the handset market, the company said in releasing its earnings on Tuesday.

    BlackBerry, a Canadian smartphone maker, said it sold only 1.1 million phones in its first quarter, a decline of 500,000 from the previous quarter. The company, led by John S. Chen, also reported an adjusted loss of $28 million, or 5 cents a share, on revenue of $658 million, compared with a loss of $60 million, or 11 cents a share, on revenue of $966 million in the period last year.

    From the earnings, it was unclear whether Mr. Chens strategy of transforming BlackBerry into a company focused on selling software was advancing as quickly as planned. On Tuesday, shares of BlackBerry fell more than 4 percent to $8.81.

    Colin Gillis, an analyst with BGC Partners, said that Mr. Chens turnaround plan still remained unproved.

    John Chen of BlackBerry on Earnings John Chen, C.E.O. of BlackBerry, discusses the companys results and the business moving forward.
    Were in the early stages of Phase 2, Mr. Gillis said. Phase 1 was: Make sure we survive as a company. Phase 2 is: Lets get some growth and move to the software model.

    The software and patent licensing business of BlackBerry grew 150 percent, to $137 million, over the previous quarter. But in a conference call with analysts, Mr. Chen, the companys chief executive and executive chairman, said that the bulk of that growth had come from a patent licensing deal with Cisco Systems, as well as one with another company, which he declined to identify.

    While Mr. Chen said that a legal agreement with Cisco and the other company prevented him from disclosing the amount of money BlackBerry will receive or the terms of the arrangements, he said that he did not expect the overall software business to grow in the current quarter.

    Some analysts estimated that the companys software business, excluding the patent deals, had not grown substantially during the quarter, although it was higher than a year ago.

    Graphic | Wall Streets Reaction to BlackBerry
    Not long ago, Mr. Chen was raising expectations that two new and expensive phones, the Passport and the Classic, would revive interest in BlackBerry handsets among corporate and government users.

    Mr. Chen characterized the sales of the Passport, which has an unusual square screen above its physical keyboard, as rather steady. He said sales of the Classic, which uses the companys new operating systems while emulating BlackBerrys traditional physical design, were still rising. Mr. Chen acknowledged that the design of the BlackBerry Leap, a relatively inexpensive phone, was disliked by some consumers, particularly traditional BlackBerry customers, and that it was still too early to assess its sales.

    Speaking with analysts and then later with shareholders at the companys annual meeting, Mr. Chen suggested that the phones problems were mainly related to weak marketing and advertising. We just need to bring awareness up, he said.

    During the annual meeting in Waterloo, Ontario, Mr. Chen said that despite the sluggish sales, the company was sticking with plans to introduce more new phones later this year.

    Why are we in the handset business? he asked. I think we have a chance to make money in the handset business.

    Mr. Chen said that two contract phone manufacturers based in Taiwan, Wistron Corporation and Compal Electronics, have agreed to share in the development and inventory costs of future phones. BlackBerry reached a similar arrangement with a unit of Foxconn earlier.

    But Mr. Chen repeated that software was his focus and said that he planned to reallocate hardware spending. In the first quarter, phones accounted for about 40 percent of BlackBerrys sales, services were 38 percent and software was 21 percent.

    Mr. Chen estimated that 60 percent of BlackBerrys software sales, excluding the patent licenses, involved new software that allowed corporate and government information technology departments to manage and bolster security, not just on BlackBerrys used by employees but also on iPhones from Apple and phones using the Android operating system from Google.

    Mr. Chen said he was confident that software revenue, excluding patent licenses, would rise throughout the coming year.

    I feel the direction and momentum, he said.

    Posted via CB10
    06-23-15 09:22 PM
  2. Fret Madden's Avatar
    I went for a walk on the beach and got stabbed in the toe with a shell fragment. Shorten it up and get to the point.
    06-23-15 09:39 PM
  3. early2bed's Avatar
    It looks like these hardware subcontractors - now three - are going to be designing, manufacturing, and inventorying the smartphones. John Chen will divert BlackBerry hardware resources to software projects. These devices will probably have different design elements, software platforms, and quality. They will probably also resemble other company's devices.
    06-23-15 09:59 PM
  4. Fret Madden's Avatar
    It looks like these hardware subcontractors - now three - are going to be designing, manufacturing, and inventorying the smartphones. John Chen will divert BlackBerry hardware resources to software projects. These devices will probably have different design elements, software platforms, and quality. They will probably also resemble other company's devices.
    Well, yeah. Unless they do that Empathy concept.
    06-23-15 11:35 PM

Similar Threads

  1. List of things the Z10 should do but doesn't...
    By cbcj in forum BlackBerry Z10
    Replies: 19
    Last Post: 12-08-15, 09:43 AM
  2. Replies: 16
    Last Post: 06-24-15, 05:38 PM
  3. Can you drive a portable projector direct from a Blackberry Classic?
    By CrackBerry Question in forum BlackBerry Classic
    Replies: 1
    Last Post: 06-24-15, 11:49 AM
  4. Camera++ How to make it Launch from Bottom of Screen?
    By 6stringriffs in forum BlackBerry 10 Apps
    Replies: 1
    Last Post: 06-23-15, 09:40 PM
LINK TO POST COPIED TO CLIPBOARD