Blackberry Shares Tanks again – Considers being a Software only Company

REUTERS/Mark Blinch
REUTERS/Mark Blinch

Yahoo Finance –

BlackBerry Ltd shares sank on Friday 01/04 after it reported a larger-than-expected slide in fourth-quarter revenue which it blamed partly on disappointing sales of its new Android-based Priv smartphone.

The Canadian company’s shares fell more than 6 percent in New York and Toronto as the weak results raised fresh questions about the viability of its traditional hardware business.

The smartphone industry pioneer lost its early lead to major rivals like Apple Inc’s iPhone, and Chief Executive John Chen hopes to redesign the company around higher-margin software and services to manage mobile devices in the workforce.

Chen said if he can’t make handsets profitable this year he would consider cutting the unit loose.

“If by September I couldn’t find a way to get there … then I need to seriously consider being a software company only,” he told CNBC television.

Software and licensing revenue for the year came to $527 million, exceeding BlackBerry’s target of $500 million. The figures make enough sense to support CEO Chen’s considerations.

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