Dallas, Texas 06/24/2015 (Financialstrend) – BlackBerry Limited (NASDAQ:BBRY), the inventor of smartphones continues to face decline in its mobile handsets, Hence the company changed its strategy by pulling money from handsets and deploying the same in software business. However, the risk has paid off since the companies software business did exceedingly well in latest results announced compared to its hardware business.
BlackBerry Limited (NASDAQ:BBRY) by investing in its software business is trying to become a mobile software business and the results are also proving to be positive as First quarter results showed that the revenue for software business surged by 150 percent to $137M which is really a good sign.
BlackBerry Limited (NASDAQ:BBRY)’s turnaround depends on the selling of software rather than its mobile handsets. However, the Company has to face a lot of competition from mighty IBM to small startups. Therefore, in order to face the competition the company is offering free version of its enterprise server software to attract customers.
As per the estimates given by Wells Fargo, the company’s revenue had one off sale of perpetual licenses worth $50M.
BlackBerry Limited (NASDAQ:BBRY)’s target was to reach $500 million revenue in software (including one-off sales) this year. But the company earned $3 billion on revenue from device purchases and service charged to the subscribers using its network.
BlackBerry Limited (NASDAQ:BBRY)’s cash flow for the quarter was $123 million and the company maintained $3 billion in cash. The company has showed that it can control its cost and operating expenses were cut down by half to $300 million. All these efforts and the strategies put in by the company shows its continuous effort and hard work and a turnaround from a bear market to bull market.
Shares of BlackBerry Limited (NASDAQ:BBRY) continued to languish on the downside. The stock was down by 4.24% in yesterday’s trading session to close at $8.81. Moving ahead it will be interesting to see if the stock takes support at $8.50 which will be a critical level to watch.