BlackBerry will release its fiscal third quarter results Friday morning.
Tech analyst Sean Udall of Quantum Trading Strategies tells 570 News he believes BlackBerry CEO John Chen made a wise decision in placing greater reliance on software sales because the company continues to have a strong foothold in security for corporate customers. “I think he’s doing so, fairly successfully into more of a software service security provider into the big companies and the governments that they have contracts with.”
Udall says security is becoming increasingly important to BlackBerry’s bottom line, given the growing concern over hack attacks and cyber security issues. “Security is becoming more and more important all the time, so I think if they can grow that business and make software and security a bigger part of the picture, I think the company is on very good footing.”
Udall says the company has continued to turn itself around. “They have a really good balance sheet. If they can just get to the point where they grow sales year over year instead of having declining sales year over year, the stock probably has a lot of upside.
The quarterly results are the first since last month’s release of the Priv – BlackBerry’s Android-based device. Udall says he does not expect the device to make much of an impact in the hardware market. He says it’s more important for the company to continue to show growth in its software division.