BlackBerry Ltd (NASDAQ:BBRY) is looking to offset persistent challenges on its ailing hardware business with more focus on the software and enterprise business according to BGC Financial Director Colin Gillis. During an interview with CNBC, Gillis said BlackBerry has a strong upside potential when compared to other stocks in the NASDAQ 5000.
BlackBerry Ltd (NASDAQ:BBRY) has big plans for its software business that it believes can help in taking it back to its glory years even as the hardware business continues to struggle amidst stiff competition. It remains to be seen how the Canadian based company plans to be successful across the various platforms that control huge user base.
“It is a special situation; it is a turnaround. We are very positive on the new management John Chen, who is reshaping this company to being an enterprise mobility management play lets manage all the software’s on other companies networks,” said Mr. Gillis.
Cross-platform compatibility is one of the frontiers that BlackBerry Ltd (NASDAQ:BBRY) is aggressively pursuing to see if it can gain access to as many people as possible for its products. Its messaging services are already available on iOS and Android platforms allowing the company to gain access to millions of people around the globe.
The hardware business can in some quarters be seen as an afterthought as the company focuses on its software business that continues to show positive prospects. It remains to be seen if the company will get a higher valuation on the selling off, of the hardware business according to CNBC’s Melissa Lee. BlackBerry Ltd (NASDAQ:BBRY) is also reducing its dependency on the hardware business by working with partnerships, which Gillis says are geared towards outsourcing the hardware development.
“The hardware phones are still going to be a stop gap over the next year, I say build up the software revenue stream they have got a target of $500 million for software. It is about double where we are right now; they have a target for about $100 million for BBM out of a base of about zero right now. That’s pretty lofty target, but this management has delivered. You’ve got a six billion market cap with $3 billion in cash so we see some nice upside,” said Mr. Gillis.
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