A few days ago, BlackBerry announced their financial report for Q2 2016. From these reports, many things have come to light. The question is, ” Have BlackBerry done right?” Is this a move to resurgence, or are we expecting a nose dive into oblivion?
First, let’s look at the highlights of the report before we try to speculate on what may or may not be:
- Value of shares depreciated by $0.13 per share.
- Revenue breakdown for the quarter; 15% for software and services, 41% for hardware, and 43% for service access fees (SAF).
- Only about 800,000 BlackBerry smartphones were sold.
- Operating cash flow minus capital expenditures hit $100 million.
- Completed acquisition of Good Technology for $425 million.
- Completed acquisition of AtHoc for $250 million.
- Confirmation of launch for Android based BlackBerry PRIV.
- Confirmation of upgrade for BlackBerry 10 phones. New version 10.3.3 scheduled for March 2016.
Despite the huge financial losses and the other steps BlackBerry has taken, there is cause for optimism. In the words of CEO, John Chen:
“From these initiatives, we anticipate modest sequential revenue growth in each of the remaining quarters of fiscal 2016.”
The company acquired a strong competitor in Good Technology. The firm compliments BlackBerry, most especially offering Enterprise Security solutions in iOS – a platform where BlackBerry formerly had no leverage on. The second acquisition of AtHoc, brings a cross platform crisis management solution to Blackberry. This secure, networked crisis communications helps organizations and people to connect and share information in times of crisis.
All these software solutions help cement Blackberry’s stand as the best in terms of mobile security – a feature attractive to government agencies, and enterprise markets. Hopefully, this will significantly improve Blackberry’s enterprise usage over the coming months.
The average Joe is eager to see what Blackberry truly pulls off with the PRIV. The future of the company is greatly hinged on the market reception of that device. Analysts have suggested that Blackberry totally migrate to making Android devices, but that is really tricky. With that move, they stand a chance of losing their enterprise business because it might make BlackBerry less secure.
On the flip side, switching to Android will make Blackberry stronger in the hardware end of things and also save them cost and expenses already placed on their Blackberry 10 platform.
Looking at all these swift moves from BlackBerry, do you think they would hit it off? Are they heading straight down to oblivion? Or do you have a neutral stance. Your thoughts.