September 28, 2016 Last Updated 10:23 am

BlackBerry says it will no longer make its own phones, reports dismal earnings

‘The company plans to end all internal hardware development and will outsource that function to partners,’ said te company’s chairman John Chen

The company that once was synonymous with the term smartphone, BlackBerry, said today that it will stop making its own phones to concentrate on software. The announcement came as part of its quarterly earnings report that showed that revenue fell and the company reported a net loss for the quarter of $372 million, as the company took a large write-down on hardware.

“Our new Mobility Solutions strategy is showing signs of momentum, including our first major device software licensing agreement with a telecom joint venture in Indonesia,” said John Chen, Executive Chairman and CEO, BlackBerry. “Under this strategy, we are focusing on software development, including security and applications. The company plans to end all internal hardware development and will outsource that function to partners. This allows us to reduce capital requirements and enhance return on invested capital.”

The company also announced the appointment of Steven Capelli as Chief Financial Officer. Capelli was most recently President of Worldwide Field Operations at Sybase. He is replacing James Yersh who is said to be leaving the company for personal reasons.

For the first six months of the year, BlackBerry recorded $734 million in revenue, down 36 percent versus the same period a year ago. Net income is a loss of $1.042 billion.

Comments are closed.