BlackBerry‘s transformation of a leaked and leaking smartphone producer to a software company with a new look seems to work: the Canadian company reported quarterly earnings better than expected, raising its shares by more than 12%.
The company, which was famous for its small keyboard phones and had more than a third of the US smartphone market. UU In 2010, I was almost threatened by the iPhone. In 2017, it had less than 1% of the US market. UU Thousands of employees were dismissed when the losses increased and finally the company had to give up the phones and decided to reinvent itself as a specialist in software and services that it sold to large companies.
In the earnings update on Thursday, the company said that sales in its high-margin software team reached a record and prospects for the rest of the year were solid, which boosted investor confidence in its recovery strategy. The shares have increased 50% this year.
The company posted a net profit of $ 19 million (£ 14 million), after a loss of $ 372 million last year.
“There are a number of interesting growth opportunities,” said Morningstar analyst Ali Mogharabi, who cites BlackBerry’s progress in bringing its technology to driverless cars.
Last week, the company announced an agreement with Delphi Automotive, a car-sharing provider, on a driverless car software operating system.
John Chen, Blackberry’s chief executive, told analysts on Thursday he expected the company to earn $ 5 to $ 25 in auto because it is expanding into more advanced motor vehicles. It is already a leading provider of information and entertainment software in the car, Chen said to generate between $ 1.50 and $ 5 per vehicle.
Most of BlackBerry’s profits now come from the management of telephone systems for other companies, but they expect the automotive industry and industrial applications to drive future growth.