BlackBerry sold just 1.6M smartphones in Q4, but swings profit




BlackBerry reported its fiscal fourth quarter 2015 earnings on Friday. The firm noted $660 million in revenue during the quarter, missing Wall Street expectations of $794 million. Revenue was down from $976 million during the same quarter last year. The company beat expectations on profit, however, posting  4 cents earnings per share – a profit of $28 million, beating expectations of a 4 cent loss per share. Revenue for the year came in at $3.3 billion, down from $6.8 billion for the full fiscal year 2014.

BlackBerry said it sold 1.6 million smartphones to consumers, but earned revenue on 1.3 million units. Overall sales were down from 3.6 million units sold during fiscal Q4 2014, when it also recognized revenue on 1.3 million units. The average selling price of BlackBerry devices was up from $180 to $211, however.

BlackBerry noted that, of the $660 million in revenue it reported, 42 percent came from hardware sales (up from 37 percent a year ago), 47 percent was earned from services and the final 10 percent was earned through software sales. Those figures suggest that hardware sales, despite the relatively low number of BlackBerry smartphones sold, are still hugely important to the company.

“Our focus this past year was on getting our financial house in order while creating a multiyear growth strategy and investing in our product portfolio,” BlackBerry chairman and CEO John Chen said. “We now have a very good handle on our margins, and our product road maps have been well received. The second half of our turnaround focuses on stabilization of revenue with sustainable profitability and cash generation.”

BlackBerry expects its efforts to bear fruit sometime in fiscal year 2016.


By Technobuffalo