Boston, MA 02/18/2014 (wallstreetpr) – After years of uncertainty, BlackBerry Ltd (NASDAQ:BBRY) could finally be getting its grip in the market with its shares improving marginally in the stock exchange. The company plans of being cash flow stable as of 2016 seem to be gaining moment with recent improvements in the market. Despite the sharp decline in its smartphone shipments, many analysts are of the opinion the company could finally be regaining its market share.
RBC capital market analyst Mark Sue, is of the opinion the company’s revenue decline will be lower this current fiscal year compared to past fiscal years, Mr. sue is also of the opinion the company purchase commitments will continue to subside. BlackBerry Ltd (NASDAQ:BBRY)’s cash flow could be improving sooner than later, especially after the company opted to considerably cut down on real estate and operating expenditures that were draining the company’s cash balance.
Real earnings for the company might still be a farfetched dream but this has not stopped analysts at RBC capital from raising their price target from $10 to $11. BlackBerry Ltd (NASDAQ:BBRY) revenue decline in the current fiscal year is considered manageable when compared to previous years. Blackberry continues to maintain a strong customer traction with its financial and legal sectors of which the company should do all that is necessary to build on, as it gears for a better future in terms of earnings.
BlackBerry cash position
BlackBerry cash position at the moment looks good at $3.2 billion with the company planning to sell most of its real estate for $300 million while expecting to benefit from a tax refund of $500million that will boost the $800 million it has in cash. BlackBerry intends to reach positive cash flow territory as early as the fourth quarter of 2015.
Service revenue at the moment is the biggest hurdle for the company according to its Chief Executive Officer Chen which might take time to improve. This is especially because it is extremely difficult to convince enterprises to pay for BES10 security. Restructuring has had a positive impact on the company’s net expenses which have dropped from highs of $900 million to lows of $500 million, with BlackBerry Ltd (NASDAQ:BBRY) planning to reduce its expenses even further by essentially outsourcing Hardware and R&D engineers as well as leveraging assets.
