BlackBerry’s Android Lifeline Fails To Save Drowning Former Mobile Giant From $238M Quarterly Loss
BlackBerry tried to put a positive spin on its earnings report for the wireless device maker's three months and fiscal year ended February 29, 2016, but investors balked, choosing instead to focus on a steep drop in the Canadian outfits overall revenue rather than gains in its software and services business.
Total revenue for fourth quarter came to $487 million, compared to $660 million in the same quarter a year prior. That resulted in net loss of $18 million for the quarter, or $0.03 per share, on a non-GAAP basis. That's despite BlackBerry's efforts to reinvent itself by supporting Android in its Priv device released last November.
BlackBerry's financial woes are mostly attributable to hardware sales. The company's software and services division raked in $153 million during the fourth quarter, an increase of 106 percent compared to the same quarter a year ago. That bumped BlackBerry's full year software and services revenue to $527 million.
"Overall, BlackBerry’s Q4 performance was solid as we made progress on the key elements of our strategy, which are to grow software faster than the mobility software market, achieve device profitability and generate positive free cash flow," said Executive Chairman and Chief Executive Officer John Chen.
"We have clearly gained traction and market share in enterprise software. We more than doubled our software and licensing revenue in Q4 and exceeded our target of $500 million for the full year. Looking to FY 2017, our strategy is on track and our growth engines are in place to continue to generate above market growth in software and achieve our profitability objectives," Chen added.
Despite BlackBerry's optimism, investors sent BlackBerry's stock spiraling downward nearly 9 percent in early morning trading. While BlackBerry was real forthcoming with specific hardware sales figures, investors are clearly disappointed that its adoption of Android didn't bump up the company's bottom line in the short term.
Total revenue for fourth quarter came to $487 million, compared to $660 million in the same quarter a year prior. That resulted in net loss of $18 million for the quarter, or $0.03 per share, on a non-GAAP basis. That's despite BlackBerry's efforts to reinvent itself by supporting Android in its Priv device released last November.
BlackBerry's financial woes are mostly attributable to hardware sales. The company's software and services division raked in $153 million during the fourth quarter, an increase of 106 percent compared to the same quarter a year ago. That bumped BlackBerry's full year software and services revenue to $527 million.
"Overall, BlackBerry’s Q4 performance was solid as we made progress on the key elements of our strategy, which are to grow software faster than the mobility software market, achieve device profitability and generate positive free cash flow," said Executive Chairman and Chief Executive Officer John Chen.
"We have clearly gained traction and market share in enterprise software. We more than doubled our software and licensing revenue in Q4 and exceeded our target of $500 million for the full year. Looking to FY 2017, our strategy is on track and our growth engines are in place to continue to generate above market growth in software and achieve our profitability objectives," Chen added.
Despite BlackBerry's optimism, investors sent BlackBerry's stock spiraling downward nearly 9 percent in early morning trading. While BlackBerry was real forthcoming with specific hardware sales figures, investors are clearly disappointed that its adoption of Android didn't bump up the company's bottom line in the short term.
