BlackBerry is back in the black.
The Canadian Smartphone maker today posted a $28 million, or five cents a share profit.
The fourth quarter results surprised Wall Street and pleased investors and shares rose accordingly — more than five percent before the markets had even opened. According to a survey by Zacks Investment Research, analysts had been expecting a loss of three cents per share — and even that would have been an improvement compared to the year-ago quarter when BlackBerry lost $148 million, or 28 cents a share.
CEO John Chen attributed the results to the cost-cutting measures he implemented last year combined with a set of new priorities.
“Our focus this past year was on getting our financial house in order while creating a multi-year growth strategy and investing in our product portfolio. We now have a very good handle on our margins, and our product roadmaps have been well received,” Chen said. “The second half of our turnaround focuses on stabilization of revenue with sustainable profitability and cash generation.”
It was not all good news for the Waterloo, Ont. company, however. Its revenues plummeted 33 per cent to $660 million compared to the $976 million it made in the same quarter last year. Wall Street had been expecting $833.1 million this quarter.
BlackBerry has had a rough time in recent years. Chen has reorganized the beleaguered firm since taking over in November of 2013 from fired CEO Thorsten Heins.
The company has completed the first phase of Chen’s two-year turnaround plan which included putting a new management team in place, selling off some real estate holdings and laying off about 40 percent of BlackBerry’s workforce. Chen has also retuned the company to its core strengths of enterprise and security.