BlackBerry Ltd (NASDAQ:BBRY) has reported making unexpected quarterly profits. The company’s CEO John Chen was happy to report that the company has made a profit of $28 million, which translates to 5 cents profits per share.
The news came as a surprise especially after investors had feared and speculated that the company would experience continued losses. However, the good news was accompanied by a gloomy cloud. This is because, despite the increased profits, Blackberry was still experiencing a downward slope of the sales figures. The sales for the company had decreased by 32%, settling at $660 million for the quarterly accounting period ending in February.
The sales registered had been a decline from the $786 million Wall Street estimates. This resulted to the lowest sales ever recorded for Blackberry, since mid-year 2006.
CEO John Chen happily made a statement saying that hopes for the company’s capacity to make financial improvements have yet to die out. His statements were backed up by a welcome closing increment in Blackberry’s shares by 2%, with a record of a 5% at one point during the open trading period.
In an interview with Richard Quest, Cheng revealed that the company was adopting a different strategy to gain back or maintain its customers by adhering to the customer preferences. He commented on the introduction of new devices to mostly reflect professional appeal. This strategy also involves the continued manufacture of some of its stylish QWERTY and semi-touch phones as well as the new full-touch devices. Software improvements are also being made to give users a more satisfying experience.
The move to make software improvements was welcomed by Wall Street. This is because the software improvements had resulted positively, especially with recorded software revenue from the previous year rising growing by 20%. Software revenues are however only 10% of the firm’s total returns.
With BlackBerry Ltd (NASDAQ:BBRY)’s customers on the decline as well as the current poor performance, there are speculations as to whether the company will still manage to make a stable come back.
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