News / Economy

BlackBerry Posts Surprise Profit

A new Blackberry Z10 smartphone is displayed at a store in New York, Mar. 22, 2013.
A new Blackberry Z10 smartphone is displayed at a store in New York, Mar. 22, 2013.
Reuters
BlackBerry reported a surprise quarterly profit on Thursday and said it shipped 1 million of its all-new Z10 smartphones in the period, but the company has yet to convince some investors that its turnaround plan is succeeding.
          
The Canadian smartphone maker's shares were up nearly 2 percent in early trading, but had jumped of more than 10 percent immediately after the results came out. Some investors focused on a decline in the company's subscriber base, a possible threat to its long-term growth prospects.
 
Still, the results offered solace to both bulls and bears on BlackBerry, which virtually invented on-your-hip email, but has lost market share to iPhone maker Apple and smartphones using Google Inc's Android software.
 
“I think the 1 million units is a nice start,” said Morningstar analyst Brian Colello.
 
“I think the encouraging thing is that BlackBerry was still able to sell a good portion of older models and generate solid service revenue during the transition. I think that will be important in terms of cash balance and profitability.”
 
The touchscreen Z10, which uses an all-new operating system, is key to BlackBerry's revival. Its introduction a month before the end of the quarter received a warm reception in Canada and a few other countries, but the initial U.S. launch, just last week, was muted.
 
Some analysts said revenue missed expectations and that the decline in subscriber numbers to 76 million from 79 million during the fourth quarter ended March 2 clouded BlackBerry's long-term turnaround prospects.
 
The stock was up 1.9 percent at $14.83 in early trading on Nasdaq.
 
Break-even forcast

BlackBerry said Mike Lazaridis, who co-founded BlackBerry nearly 30 years ago, would step down as vice chairman and director. Lazaridis was co-chief executive officer until last year.
 
The company also surprised investors by saying it believes it will approach break-even financial results in its first quarter, based on a lower cost base, more efficient supply chain and improved hardware margins.
 
Analysts on average had expected a loss of 10 cents a share in the first quarter, according to Thomson Reuters I/B/E/S.
          
BlackBerry said net income in the fourth quarter was $98 million, or 19 cents a share, compared with a year-earlier loss of $125 million, or 24 cents a share.

Excluding one-time items, the company reported a profit of 22 cents a share. Analysts had expected a loss.

Yet the company is not out of the woods. Quarterly revenue fell to $2.68 billion from $4.2 billion a year earlier, below analysts' estimates of $2.84 billion.
 
“All in all, I'm happy because I think the majority seemed to be expecting the world to cave in on them, and that did not happen,” said Eric Jackson, founder and managing partner of Ironfire Capital LLC, which owns BlackBerry shares.

You May Like

Video Experts Warn World Losing Ebola Fight

Doctors Without Borders says world is losing battle against Ebola, unless wealthy nations dispatch specialized biological disaster response teams More

Video Experts: Rise of Islamic State Significant Development in Jihadism

Many analysts contend the group - which grew out of al-Qaida in Iraq - has been rebuilding for years More

US-Based Hong Kongers Pledge Support for Pro-Democracy Activists

Democracy advocates call on Chinese living abroad to join them in opposing new election rules for their home territory More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Larger Than Life Chinese Lanterns Make Southern California Appearancei
X
Elizabeth Lee
September 02, 2014 8:57 PM
Chinese lanterns with a long history are lighting up in 21st century style at the Los Angeles County Fair in southern California. Visitors can see traditional lanterns that hang, but also lanterns in the shape of animals, iconic landmarks and many other objects, all created by artisans from a place in China known for its lanterns. Elizabeth Lee has the details from the fair in the city of Pomona.
Video

Video Larger Than Life Chinese Lanterns Make Southern California Appearance

Chinese lanterns with a long history are lighting up in 21st century style at the Los Angeles County Fair in southern California. Visitors can see traditional lanterns that hang, but also lanterns in the shape of animals, iconic landmarks and many other objects, all created by artisans from a place in China known for its lanterns. Elizabeth Lee has the details from the fair in the city of Pomona.
Video

Video Experts See Rise of ISIS as Significant Development

The Islamic State’s rise seems sudden. It caught the U.S. by surprise this summer when it captured large portions of northern Iraq and spread its wings in neighboring Syria. But many analysts contend that the group - which grew out of al-Qaida in Iraq - has been rebuilding for years. VOA's Jela de Franceschi takes a closer look at the rise of ISIS and its implications for the Middle East and beyond.
Video

Video Israel Concerned Over Syrian Rebels in Golan

Israeli officials are following with concern the recent fighting between Syrian rebels and government forces near the contested Golan Heights. Forty-four U.N. peacekeepers from Fiji have been seized by Syrian Islamist rebels and the clashes occasionally have spilled into Israel. VOA’s Scott Bobb reports from Jerusalem.
Video

Video Ukraine Schools Resume Classes, Donate to Government Forces

A new school year has started in Ukraine but thousands of children in the war-torn east are unable to attend because of ongoing clashes with pro-Russia rebels. In Ukraine's capital, patriotic education has become the norm along with donations to support injured security forces fighting to take back rebel-held areas. VOA's Daniel Schearf reports from Kyiv.
Video

Video US Detainees Want Negotiators for Freedom in North Korea

The three U.S. detainees held in North Korea were permitted to speak with foreign media Monday. The government of Kim Jong Un restricted the topics of the questions, and the interviews in Pyongyang were limited to five minutes. Each of the men asked Washington to send a representative to Pyongyang to secure his release. VOA’s Carolyn Presutti has our story.
Video

Video Turkmen From Amerli Describe Survival of IS Siege

Over the past few weeks, hundreds of Shi'ite Turkmen have fled the town of Amerli seeking refuge in the northern city of Kirkuk. Despite recent military gains after U.S. airstrikes that were coordinated with Iraqi and Kurdish forces, the situation remains dire for Amerli’s residents. Sebastian Meyer went to Kirkuk for VOA to speak to those who managed to escape.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.

AppleAndroid

World Currencies

EUR
USD
0.7537
JPY
USD
103.79
GBP
USD
0.6032
CAD
USD
1.0957
INR
USD
60.522

Rates may not be current.