BlackBerry can still return to profitability and a position of strength in the tech sector, its CEO says – even if it will likely never again be able to count on hardware as enough to keep the company afloat.
John Chen made those remarks Wednesday during the company’s annual general meeting, which was held one day before the release of BlackBerry’s results for the fiscal first quarter, which ended May 31.
Analysts are expecting BlackBerry to report another loss for that quarter, likely somewhere around US$27 million.
For its previous quarter, the company reported a net loss of US$238 million, largely due to restructuring and acquisition costs.
Still Chen sounded notes of optimism during Wednesday’s AGM, saying that his top priority remains bringing BlackBerry’s handset business back to profitability in short order.
“The device business must be profitable. We don’t want to run a business that drags on the bottom line,” he said.
“We’ve got to get there this year.”
Chen did warn investors that handset success alone would not be enough to secure the company’s future. In his opinion, he said, no company will be able to survive long-term based on only its hardware.
Instead, Chen told the meeting, the future will belong to whoever can play a leading role in “what connects the devices, and what makes the devices do better.”
Chen has said in the past that if handsets can’t be brought to profitability, BlackBerry will get out of that business entirely.
The BlackBerry Priv, released last year, was considered the company’s last shot at handset sustainability by some analysts. Chen said Wednesday that the device was not selling as well as anticipated.
On the positive side, the CEO pointed to growth in the company’s software revenue, the potential to expand its Internet of Things offerings, and “exciting new markets,” particularly in developing countries.
He mentioned a secure tablet the company has created for the German military, saying that technology had yet to be rolled out in other parts of the world.
Chen said negative coverage from financial analysts was one factor working against the company, and that BlackBerry was attempting to work with some analysts to get more positive recognition.
Other items listed by Chen as priorities included being able to grow BlackBerry’s software business at a rapid rate – he said he was hoping for 30 per cent in one year – and maintaining the company’s “cash-rich” position.
The Waterloo-based company has taken a number of steps in recent months showing attempts to diversify beyond its core business, including technology for self-driving automobiles, tracking software for trucking fleets, and a new division offering cybersecurity consulting.
With files from BNN and The Canadian Press
