Yes BlackBerry Is Still Around: Here’s What It Reported On Wednesday
With all the attention focused on Apple (NASDAQ: AAPL) and Samsung in the hotly contested smartphone battle, Blackberry (NASDAQ: BBRY) has been quietly trekking along. Granted, its share of the smartphone market remains a fraction of what it once was, Wednesday marked a key date in its history.
For starters, Blackberry reported its second quarter results which were mixed. The company said it broke even on a per share basis on revenue of $352 million. Wall Street analysts were expecting the company to report a loss of five cents per share on revenue of $394 million. Net loss for the quarter worsened to $372 million from $238 million in the same quarter a year ago.
Looking forward, Blackberry revised its full year earnings guidance higher and nowexpects to break even on a per share basis after guided to a five cent loss.
Perhaps more notably, Blackberry said in a separate press release that it will end all internal hardware development initiatives and will outsource manufacturing of its devices to outside partners.
Essentially, Blackberry’s 20-year run as a mobile hardware manufacturer has come to an end. The company has tasked Indonesia-based BB Merah Putih with sourcing, distributing and promoting Blackberry’s devices that contain Android software and applications. However, it is not yet clear if Blackberry branded devices will continue to be sold outside of the Indonesian market where Blackberry has seen greater success relative to other markets.
“BlackBerry is no longer just about the smartphone, but the smart in the phone,” Blackberry’s CEO John Chen said in the press release. “Working with trusted partners to extend the reach and availability of our secure mobility software remains a key focus for the Mobility Solutions unit and this joint venture is just one of our next steps in making our software licensing strategy successful.”
Investors and traders appear to have been pleased with Blackberry’s announcement as it essentially exited a battle it can never win in the hardware segment. The company can now better focus on software where it offers innovative and market leading products to customers.
Blackberry’s stock was trading higher by more than 5 percent on Wednesday but it is still lower by more than 10 percent since the start of 2016, not to mention lower by more than 60 percent over the past five years.