BlackBerry releases financial report for fiscal Q1 2015, things are much better than expected

 
During the first quarter of the fiscal 2015, which ended on May 31, BlackBerry has earned $966 million in revenue, just 1% less than the amount it brought back home during the previous quarter. This became clear after BlackBerry released its financial report about the fiscal quarter that ended roughly 20 days ago, on May 30. The breakdown of the revenue tells us that 54% of it has been earned by BlackBerry's services, while the smartphone department is responsible for 39% of the revenue.


There is a big increase in the amount of smartphones that earned BlackBerry money, though - from the 2.6 million devices that BlackBerry sold during the last financial trimester, 1.6 million brought in revenue for the company. This is a 20% increase in comparison with the 1.3 million devices that brought profit for the Waterloo-based company. The cash and cash equivalents of BlackBerry also increased to $3.1 billion, a $429-million increase in comparison with the $2.7 billion that the company had at the end of the previous trimester.

The former giant also scored a surprisingly low loss of $0.11 per share. Prior to the release of the financial report, most experts predicted that BlackBerry will continue to flow red ink and lose roughly $0.27 for each of its shares.

With all being said, it seems that the methods of John Chen, the renowned turnaround expert that is the current head of BlackBerry, have actually succeeded in stopping BlackBerry from spiraling down to bankruptcy. Several months ago, he stated that he is pretty determined to make the Canadian company a "cash flow positive" by the end of the fiscal 2015.

"Our performance in fiscal Q1 demonstrates that we are firmly on track to achieve important milestones, including our financial objectives and delivering a strong product portfolio," revealed the CEO. "Over the past six months, we have focused on improving efficiency in all aspects of our operations to drive cost reductions and margin improvement. Looking forward, we are focusing on our growth plan to enable our return to profitability."

It was also revealed that the BlackBerry Z3, which was initially released as exclusive for the Indonesian  market, will hit the shelves in 8 more countries soon. India and Malaysia will most probably be among these. The Waterloo-based manufacturer will probably rely on the success of the device on these emerging markets in order to bring home even more bacon.

The financial report for the currently ongoing fiscal quarter, which ends on August 31, will tell us if John Chen's efforts will turn the tides for BlackBerry.

BlackBerry's financial report for Q1 of fiscal 2015

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source: BlackBerry via BGR