BlackBerry reported a fourth quarter profit on Friday, increasing expectations of sustained profitability in the year. However revenue continued to fall, with $3.33 billion, down from $6.81 billion for the 2015 fiscal.
The Q4 profit stood at $28 million or 5 cents a share while the revenue decreased to $660 million, down from $976 million, last year. Wall Street expected BlackBerry to post a loss of 5 cents a share and a revenue of $734 million. However, the company cut its losses from $5.87 billion in fiscal 2014 to $304 million in fiscal 2015.
“Our financial viability is no longer in question,” said BlackBerry CEO John Chen.
Chen stated that the company is only halfway in the process of transition, and predicted sustained profitability in the fiscal that started from March 1. Though the company is releasing four smartphones in 2015, there will be more emphasis on development of software. Revenue reports in the last quarter revealed that hardware constituted 42 percent, while software reported 10 percent of the revenue.
Software revenue stood at $67 million in the last quarter, a 20 percent increase from last year. Gartner analyst Ken Dulaney mentioned that BlackBerry generated revenue from older devices, and the company needed to sell millions of devices to consumers. He added that it could not be a “fertile” area for the company anytime soon.
BlackBerry has potential to gain foothold in the market as it has cash and equivalents, worth $3.27 billion. This would depend on the company’s moves to improve its software, especially in security. The company also plans to develop an Internet of things business.
Recently BlackBerry has announced its partnership with Google to introduce Android for work and the Blackberry Enterprise Service (BES) 12 cloud service. The company is offering it software to several institutions like government of Canada, Delta Airlines, HSBC and others. The focus on software indicates that the company will make use of its software potential in the area of privacy and security, to remain in business.
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