MONTREAL, CANADA: Canadian smartphone company BlackBerry, under new leadership, announced a small profit in a surprising turnaround despite a huge drop in revenues.
BlackBerry's Chief Executive John Chen says the company is on track to return to profitability. Image: BlackBerry Blogs
The Ontario-based company reported a slight profit of $23m in its fiscal first quarter ended 31 May, following back-to-back losses.
Quarterly revenue, however, fell to $966m from $3.07bn a year ago. This was also down from the previous quarter.
The figures do not include exceptional items such as the sale of its offices and a change in the assessed fair value of millions of dollars in debentures.
Excluding these items, BlackBerry's adjusted loss was $60m or 11 cents per share. But even this adjusted loss is still less than half the level that analysts had expected.
Chief Executive John Chen said the results demonstrate that the company is firmly on track to achieve important milestones, including its financial objectives.
"Over the past six months, we have focused on improving efficiency in all aspects of our operations to drive costs down and improve margins. Looking forward, we are focusing on our growth to enable our return to profitability," he said.
After posting record losses last year, the company brought in new management and outsourced its handset production to Taiwan-based Foxconn.
BlackBerry said it sold 2.6m smartphones in the last quarter.
Hardware sales accounted for 39% of its revenues, while services grew to 54%. The remainder came from software and other sources.
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