Despite missing the revenue in its third quarter Earnings Report, BlackBerry Ltd (NASDAQ:BBRY)‘s CEO John Chen expects the company to embark on the path of growth somewhere in the next fiscal year. He expanded on his thoughts in an interview on CNBC.
BlackBerry Ltd (NASDAQ:BBRY)’s stability had been the focus of John Chen, as he laid little stress on growth. However, this changed on Friday during the company’s Earnings Call when he sounded a lot more hopeful of the company’s turnaround and he even used the word that he had been hesitant to use before, ‘growth’, while describing his expectations from the once esteemed tech giant.
Although BlackBerry Ltd (NASDAQ:BBRY) has launched two new phones in the span of just a few months, the main focus of the company, in order to generate a reliable revenue stream is a different product. It is the Ontario based company’s new mobile device management software, BlackBerry Enterprise Server, or BES 12 for short.
In the interview, Chen explained how the new software, which it has released in partnership with Samsung is going to add weight to the company’s top line in future.
“I think we are able to kind of separate the two. Our BES12 are very focused on the cross platform. On the call, I named a number of winds, that was very high profile that had moved to the BES 12 and both in on-premise and holistic solution, more importantly we are getting a pretty good business coming and we are doing it on a subscription basis, not on a perpetual basis. That’s why the revenue is going to be a little later; it will come more steadily,” said Chen.
There are not a lot of example of tech companies that have fallen out of the market’s favour, and then came back with a storm. Actually apart from Apple, one would really have to struggle to come up with the second name in this category. Since John Chen was the focus of this article, many would have guessed Sybase to be the second company. Many investors are banking that Chen might be able to pull out another Sybase with BlackBerry Ltd (NASDAQ:BBRY) too, but its a long painful journey that the company will have to undergo in order to achieve this.
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