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Blackberry reports adjusted profit for third quarter, stock prices fall

Blackberry on Friday reported that its revenue had failed to meet the expectations in the third quarter, though it reported an adjusted profit for the period. On Friday, shares fell by six percent and while analysts forecast a $0.05 loss per share.blackberry-reuters-L

The company reported $793 million in revenue while analysts predicted $1 billion. On NASDAQ by 12:30 p.m, Blackberry stocks were trading at $9.83 after prices fell by $.0.24 per share. Blackberry saw a major decrease in stock prices after 2011 when shares were trading at $77 per share. However, there was a significant improvement in the net loss for the quarter with $148 million when compared to last year’s net loss of $4.4 billion.


“We still need a lot of work and a lot of attention and working well together and that’s what I’m spending most of my time on,” said John Chen, CEO and executive Chairman.

In the conference call with analysts Chen stated that he expected the company to be profitable in 2016 and mentioned it was not an easy task. Blackberry which held up to 50 percent of smartphone users in the U.S in 2009 had a drastic fall in the number of users with the entry of Android and Apple smartphones.

Blackberry on Wednesday introduced the Classic smartphone aimed at keypad fans and business users. While it is widely speculated that the Classic smartphone might not find users in the age of touch screen phones, the company stated that it had fulfilled more than 200,000 orders of the recent Passport phone. The passport has also sold out a number of times in the quarter, the company added.

Chen has been focusing more on mobile device management business and developing software for IT companies. The company stated that it continues to  target sustainable adjusted profit in fiscal 2016. The company also expects to sell about 10 million smartphones by next year.

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