Struggling handset maker sees light at the end of the tunnel
There may be hope for BlackBerry yet. The company formerly known as RIM -- these days it's just BlackBerry -- surprised investors and analysts by posting a $23 million profit for the three-month period ended May 31, 2014. That's quite a change from the $423 million loss it posted three months ago, and the $84 million loss it posted a year ago after being beaten down by the competition.
The gain in profit came despite a $10 million sequential drop in revenue ($966 million for $976 million the previous quarter). About 39 percent of BlackBerry's revenue came from hardware sales, 54 percent from services, and 7 percent for software and other areas.
"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," said John Chen, Executive Chairman and Chief Executive Officer of BlackBerry. "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."
For the first time in a long time, things are looking relatively bright for BlackBerry, or at least brighter than they have been. Following a profitable quarter, BlackBerry's upcoming BB10.3 software will allow users to install Android apps from the Amazon Appstore.