Boston, MA 06/19/2014 (wallstreetpr) – BlackBerry Ltd (NASDAQ:BBRY) has posted 1Q2015 financial results above Wall Street expectations. The struggling smartphone maker released financial performance for the three months trading period ended May 31. The results showed the company making compelling improvements especially with regards to cost controls as bottom line gained support despite decline in revenue for the quarter.
The company earned a net income of $23 million or $0.04 per share on revenue of $966 million. It suffered a net loss of $84 million or $0.16 per share in the same period a year ago. On the adjusted figures, the company suffered a loss of $0.11 per share in the quarter, yet analysts were expecting a loss of $0.35 per share. As for the revenue analysts were looking for revenue to come in at $961.7 million.
The quarter saw the company’s revenue falling from $3.07 billion a year ago.
The future in focus
BlackBerry Ltd (NASDAQ:BBRY) is witnessing a lot of pressure in its handset business. The company moved to share the handset business with a Foxconn of Taiwan so that it can avoid the financial burden associated with inventory failure as has been in the norm in the past several quarters.
Although the company is gradually focusing less on hardware sales, it expects the business to breakeven or to turn a profit soon. The company sold 2.6 million phones in the just reported quarter, noting that most of the sales at 80 percent were made to business users.
The company is struggling to compete against Apple Inc (NASDAQ:AAPL) and devices powered by Android OS from Google Inc (NASDAQ:GOOG). John Chen, the CEO, who is managing the BlackBerry turnaround, is keen on downsizing the hardware business to support the company’s overall growth.
As BlackBerry Ltd (NASDAQ:BBRY) looks to reboot its hardware business, the company is putting more emphasis on device management business and BlackBerry Messenger App. These are the business areas that the company sees strength and seeks to take advantage of the opportunities as while exist.
New products
BlackBerry Ltd (NASDAQ:BBRY) plans to launch at least two new devices this year namely BlackBerry Passport, a keyboard smartphone and Classic, in September and November, respectively.
