updated 09:35 am EDT, Fri March 28, 2014
Analysts expect BlackBerry return to profitability some time in 2015
BlackBerry might be showing signs of recovery, but it still isn't out of danger yet. In the most recently quarterly earnings report by the Canadian cellphone manufacturer, the company posted a net loss of $423 million, much less than was expected. Revenue also fell to $976 million, lower than an expected $1.11 billion.
The year-ago quarter from BlackBerry had a $2.68 billion revenue, and $98 million profit. BlackBerry posted a $0.08 per share loss. Analysts expected nearly seven times as great a loss, predicting a $0.55 per share deficit.
BlackBerry noted 3.4 million device sales to customers in the last quarter. Acceptance of the new BB10 phones remains weak, with 68 percent of sales going to older BlackBerry 7 devices.
Highlights of the quarter were gross margin climbing to 43 percent, up from 34 percent in the prior quarter. Channel inventory dropped 30 percent from the prior quarter. Possibly most importantly, operating expenses have been cut from real estate sales and other cost-cutting measures by approximately 51 percent from the first quarter of fiscal year 2014.