BlackBerry expected to post another loss when Q1 results issued this morning
Posted Jun 23, 2016 06:27:23 AM.
This article is more than 5 years old.
BlackBerry’s latest financial report this morning may offer some insight into how well its first Android-powered device, the Priv, has been selling.
CEO John Chen told BlackBerry’s annual general meeting on Wednesday that the company’s No. 1 goal is to make its smartphone business profitable this fiscal year, but admitted the Priv has not been moving as quickly as hoped.
The company (TSX:BB) previously said it needs to sell about three million of the smartphones at an average of $300 apiece to break even.
BlackBerry sold a total of 600,000 phones, including all models, in the fourth quarter – a drop of about 100,000 from the third quarter. Chen partly blamed the lacklustre sales on the delay of a distribution deal with Verizon Wireless.
He has said the company will stop making smartphones if the device business remains unprofitable, but doesn’t believe that will be necessary. The company hired a new senior vice-president of global device sales in late April to help its smartphone business.
The company’s software and services operations have performed better, and Chen said BlackBerry plans to grow its software business by about 30 per cent this fiscal year.
Meanwhile, analysts are expecting another loss for the latest quarter, which ended May 31. BlackBerry reported a US$238-million net loss in its fourth quarter, mostly due to restructuring and acquisition costs.
