Blackberry bouncing back after move to software

December 20, 2016 4:51 pm1 commentViews: 20
Blackberry bouncing back after move to software

Blackberry bouncing back after move to software

by SAVIOUS KWINIKA
JOHANNESBURG – BLACKBERRY’S shift from devices to software appears to be paying off after the Canadian firm posted a profit for the third quarter of the year and raised its revenue forecast for 2017.

The company has recorded a non-GAAP (generally accepted accounting principles) gross margin of 70 percent and GAAP gross margin of 67 percent.

It notched non-GAAP total revenue of $301 million and GAAP revenue of $289 million.

Non-GAAP Company total software and services revenues of $172 million while GAAP Company total software and services revenues of $160 million.

The results come months after Blackberry announced it was halting the manufacturing of smartphones, 14 years in the industry.

“BlackBerry is now a software company and the market leader in mobile security,” an elated John Chen, Executive Chairman and CEO, BlackBerry, said on Tuesday.

He pointed out the firm achieved significant milestones in the third quarter, delivering the highest gross margin in the company’s history for the second consecutive quarter and continuing to transform its infrastructure and operations to support an enterprise software business.

“These accomplishments drove operating profitability in all business segments and overall positive non-GAAP EPS.”

BlackBerry is thus on track to deliver 30 percent growth in company total software and services revenues for the full fiscal year.

“We are raising our outlook on profitability for FY17. We now expect to achieve non-GAAP EPS profitability for the full year, up from a prior range of breakeven to a five cent loss,” added Chen.

– CAJ News

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