BlackBerry President and Chief Executive Officer Thorsten Heins gestures during the launch of the BlackBerry 10 devices in New York Jan. 30, 2013.
BlackBerry has made a surprising turnaround in the last quarter of fiscal year ending March 2, with the help of recently launched BB10 smartphones. The company reported its financial results Thursday with a profit of 98 million for the quarter and has sold one million BB10 handsets.
The company reported that it had shipped 6 million smartphones including 1 million BlackBerry phones running its new BB10 operating system. The number is less compared to shipping 6.9 million BlackBerry units in Q3 fiscal 2013. The shipment of BlackBerry PlayBook tablet hits 370,000 units in fourth quarter.
The report says, revenue for the fourth quarter of fiscal 2013 was approximately $2.7 billion, down $49 million or 2 percent from $2.7 billion in the previous quarter and down 36 percent from $4.2 billion in the same quarter of fiscal 2012. The revenue breakdown for the quarter was approximately 61 percent for hardware, 36 percent for service and 3 percent for software and other revenue.
"We have implemented numerous changes at BlackBerry over the past year and those changes have resulted in the Company returning to profitability in the fourth quarter," said Thorsten Heins, President and CEO of BlackBerry. "With the launch of BlackBerry 10, we have introduced the newest and what we believe to be the most innovative mobile computing platform in the market today. Customers love the device and the user experience, and our teams and partners are now focused on getting those devices into the hands of BlackBerry consumer and enterprise customers."
"As we go into our new fiscal year, we are excited with the opportunities for the BlackBerry 10 platform, and the commitments we are seeing from our global developers and partners. We are also excited about the new, dynamic culture at BlackBerry, where we are laser-focused on continuing to drive efficiency and improve the Company's profitability while driving innovation. We have built an engine that is able to drive improved financial performance at lower volumes, which should allow us to generate additional benefits from higher volumes in the future," he added.
Highlights of the report:
- Revenue of $2.7 billion
- GAAP income from continuing operations of $94 million, or $0.18 per share diluted
- Adjusted income from continuing operations of $114 million, or $0.22 per share diluted
- Gross margin of 40 percent driven by higher average selling prices and hardware margins
- Shipments of 6 million smartphones, including approximately 1 million BlackBerry 10 units
- Subscriber base of approximately 76 million
- Cash flow from operations of $219 million, cash and investments balance of $2.9 billion
BlackBerry will be increasing its marketing investment in the first quarter of fiscal 2014 in support of the global launch of BlackBerry 10, including the 50 percent sequential increase in marketing spending.
BlackBerry also announced that company's co-founder, Mike Lazaridis has decided to retire as Vice Chair and Director of BlackBerry. Lazaridis served as a co-CEO of BlackBerry until last year when he was elected as Vice Chair of the Board.
"With the launch of BlackBerry 10, I believe I have fulfilled my commitment to the Board," said Lazaridis. "Thorsten and his team did an excellent job in completing BlackBerry 10. We have a great deal of which to be proud. I believe I am leaving the company in good hands. I remain a huge fan of BlackBerry and, of course, wish the company and its people well."
Barbara Stymiest, Chairman of BlackBerry's Board of Directors said, "We are grateful to Mike for his contributions to BlackBerry during the past three decades. Mike invented the BlackBerry and is widely recognized as one of Canada's greatest innovators. Mike played a pivotal role for the past 15 months in helping with the leadership transition and the successful launch of BlackBerry 10. We deeply respect and appreciate Mike's desire to devote his full-time efforts to his exciting new venture, and we wish him all the best."
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