Alright folks, Blackberry released a financial report recently, and we’re about to crunch some numbers. If you are the type of person that tends to tune out when math comes into play, now would be a good time to bow out. I’ll try to keep this all entertaining I promise. The main point here is that Blackberry is doing well, exceptionally well indeed, and they’re not sinking the boat anytime soon.
This is the first official financial statement from ‘Blackberry,’ as earlier reports were made by ‘Rim’.
Last quarter Blackberry saw an increase in profits, but that’s improved in this quarter. Their total income for this quarter was $2.7 billion, which is down 2% from the previous quarter.
The net income weighed in at $98 million though, which is an increase of $9 million over the last quarter. It seems like Blackberry is finally on the rise folks!
According to Blackberry, they’ve shipped a total of 6 million phones over the last three months. The Blackberry Z10, recently launched, accounted for just 1 million of those 6 million units. Furthermore, Thorsten Heins says that out of that 1 million Blackberry Z10 units sold, two-thirds to three-quarters were already sold to customers (pre-orders and pre-sales).
Unfortunately, Blackberry did see the number of mobile subscribers drop from 79 million to 76 million, but Heins says that most of those abandoning the brand were using pre-paid devices. Blackberry continues to bleed subscribers, but to be fair, Blackberry 10 only just launched about a month ago. In fact, the Z10 is just now making its way into the hands of consumers. Hopefully we’ll see these numbers gradually take a turn for the better.
At the end of the fiscal year, which ended on March 2nd, Blackberry announced revenues of $11.1 billion which is down a total of 40% from last year- at $18.4 million. Blackberry also claimed a net loss of $628 million for the year, as opposed to the $1.2 billion net profit from last year. It’s certainly no secret that this has been a tough year for Blackberry. Development of the Blackberry 10 platform took much longer than expected, but at least it’s finally here.
The Old Regime Steps Down- This is Good News
Mike Lazaridis, former co-CEO and co-founder of Blackberry announced that he will be stepping down as Vice Chair and Director on May 1st. Overall this is fantastic news for the brand, and for the future of the company.
This leaves good ol’ Thor free to do his thing, and propel the company into the clutches of success. He won’t have to worry so much about the old regime constantly whispering in his ear.
Thorsten is essentially responsible for the successful release of the Blackberry 10 platform, and for everything the company is doing now. Personally, I was so happy to see RIM finally change their name to Blackberry- it was undeniably one of the smartest moves they’ve made in a long time.
Now if, they could just get their damn marketing right, they would be all set. There are two things that essentially plague Blackberry 10 right now.
One, Blackberry has to get their latest devices into consumers hands. People have no clue what they can do until they actually try it out for themselves.
Two, they truly need to work on getting more leading app developers to provide support for the platform. It’s not just leading apps they need, however, they also need exclusive software and content that you can’t find anywhere else. Blackberry has done a marvellous job at improving on this front over the past few months, but realistically- it needs to be better.
Way to go on those profits Blackberry! Let’s keep it up.