Blackberry severely cuts costs, seeks to reach break-even within the next 6 months
Second quarter earnings show a sharp fall in sales revenue, but a trimming of losses, as well
The Canadian smartphone maker BlackBerry this morning released its earnings for its second quarter of fiscal year 2015. The Q2 report showed that revenue declined over 40 percent in the quarter ending August 30, but that losses were $207 million compared to $965 million a year ago.
“We delivered a solid quarter against our key operational metrics, and we are confident that we will achieve breakeven cash flow by the end of FY15,” said John Chen, CEO at BlackBerry. “Our workforce restructuring is now complete, and we are focusing on revenue growth with judicious investments to further our leadership position in enterprise mobility and security, driving us towards non-GAAP profitability during FY16.”
To lower losses the company has slashed its workforce. Next the company will have to prove that it can sell handsets. On Wednesday, the company introduced the BlackBerry Passport, what it calls a device for productivity-driven business professionals, but is really a throw back to older Blackberry devices.
“As we set out to design BlackBerry Passport, we were guided by a simple yet challenging idea – to set aside the limitations of traditional design and to instead simply build a device that fundamentally changes the way business professionals get work done on their smartphone,” said Chen. “The BlackBerry Passport was created to drive productivity and to break through the sea of rectangular-screen, all-touch devices.”