BlackBerry turnaround begins

BlackBerry’s turnaround is gaining momentum after demand for chief executive John Chen’s first major new device outstripped supply and the company reported a smaller loss than estimated.

BlackBerry’s net loss narrowed to 2c a share, excluding one-time items, in the fiscal second quarter that ended August 30.

The narrower-than-expected loss was bolstered by cost cuts and stabilising smartphone sales. Chen has also sworn off the consumer handset market and instead concentrated the company’s smartphone efforts on business professionals, selling 200,000 of its new square-screen Passport phone in its debut this week. It’s all part of his plan to return to profit in the next fiscal year.

“Our workforce restructuring is now complete, and we are focusing on revenue growth with judicious investments to further our leadership position in enterprise mobility and security,” Chen said.

BlackBerry has sold enough Passport smartphones to make the device profitable, he added.

The Passport sold out in six hours on BlackBerry’s website and within 10 hours on Amazon.com, he said. The phone was introduced two days ago, after the end of the fiscal second quarter.

BlackBerry said it still plans to reach breakeven cashflow by the end of this fiscal year. The company ended the quarter with $3.1bn in cash.