BlackBerry, the Waterloo-based smartphone maker, posted another loss on Tuesday. The Ontario-based smartphone making giant, which is now steering towards software instead of hardware, posted a 47.3% decline in the third-quarter revenue as the software growth failed to make up for lost service fees and dropping hardware sales.
BlackBerry posts a $117-million loss for third quarter
The smartphone maker was mostly depending on its software business to do some magic and bring some more revenue in the Canada-based company. However, the slow growth of its software business did not put much positive impact on the revenue as evidenced by the third quarter declining revenue.
The smartphone making giant had a net loss of 22 cents a share, or $117 million, on revenue of $289 million, said the Canadian firm. Last year, the smartphone maker reported a net loss of 17 cents a share or $89 million, on revenue of $548 million. The Waterloo Ontario-based smartphone company said that it earned 2 cents a share, excluding one-time products.
The smartphone making giant reported a Q3 loss of approximately US$117 million, which is the smallest of the current financial year. The smartphone maker, which reported in U.S. currency, said the most recent quarterly loss amounted to around 22 cents per basic share before adjustments. The smartphone making giant said that after adjustments, it earned two cents a share for the quarter ended November 30.
Under generally accepted accounting rules, revenue was $289 million, way less than the $548 million reported last year when the smartphone making company posted a third quarter loss of US$89-million, worth 17 cents per share. With adjustments, the revenue for the quarter was $301 million. Around 55% of its adjusted revenue was from services and software. Both software and services are the new focus of BlackBerry Ltd. under the leadership of chief executive officer and Chairman John Chen.
BlackBerry steering towards software business, here’s why
Mobility Solutions, including the declining handset business of the smartphone maker, generated around 23% of revenue and the remaining 22% came from service access fees. Because of the declining sales of smartphones and the increasing competition from tech giants like Apple and Google, BlackBerry steered towards the software and security business. Both Samsung, the Korea-based smartphone making company, and Apple Inc., the Silicon Valley giant, are getting increasing share in the smartphone market.
The Waterloo-based smartphone company is trying to position itself in the growing market of self-driving cars. It formally opened a research centre on Monday for autonomous cars in Ottawa.