BlackBerry Ltd (NASDAQ:BBRY)’s CEO, John Chen, is a man who has been quite busy if the second quarter results are anything to go by according to Bloomberg’s Adam Johnson. The company reported a lower than expected second quarter loss with improved smartphone sales although they still fell short of Apple Inc. (NASDAQ:AAPL)’s iPhones and Samsung’s Galaxies on the global platform.
It might have been a 9th consecutive quarter of losses but that is not expected to be of a major concern to investors. This is because the company has been slowly reducing it’s losses from highs that nearly sunk it into bankruptcy in the past. A narrower than expected loss in the quarter has been attributed to cost-cutting measures, as well as the ongoing recovery of the smartphone business.
“The loss for last quarter smaller than what everyone else was looking for; 2 cents adjusted loss for the period. Analysts were looking for a loss of 16 cents and in fact, BlackBerry Ltd (NASDAQ:BBRY) continues to target break even in cash flow by the end of 2015 and gross margins 47.5%,” said Bloomberg’s Scarlet Fu.
BlackBerry Ltd (NASDAQ:BBRY) continues to register substantial improvements at the back of a turnaround strategy initiated by its inspirational CEO. A gross margin of 47.5% is close to that of Apple Inc. (NASDAQ:AAPL), a clear indication that the company could finally be picking up in terms of profitability.
Concerns only arise when BlackBerry Ltd (NASDAQ:BBRY) is compared to Apple Inc. (NASDAQ:AAPL) in terms of smartphone sales. During the second-quarter, the Canadian company sold 2.4 million smartphones a shadow of Apple Inc. (NASDAQ:AAPL)’s 10 million that were’ made in a matter of days with iPhone 6. Johnson believes that despite posting impressive results for the quarter, a lot still has to be’ done as the company has a strong financial backing that it can use to accelerate growth.
“This is a cash burn story; the company is not making money, it’s got several billion dollars. The question is who is benefiting the cash,” said Mr. Johnson.
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