Cost cutting continues at BlackBerry as firm reports US$42-million net loss in Q1
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Hey there, time traveller!
This article was published 26/06/2024 (812 days ago), so information in it may no longer be current.
BlackBerry Ltd.’s chief executive says the company’s preparations to divide up its business have so far produced millions in savings and put the business on a path to profitability.
John Giamatteo told analysts Wednesday that the Waterloo, Ont.-based tech company has made “significant” progress toward splitting its cybersecurity business from its Internet of Things division, a process which he said has lately included delegating responsibilities, launching IT systems projects and reducing back-office roles and facilities.
Giamatteo did not offer specifics on how many people or sites have been roped up in the cuts to date, but in February, BlackBerry revealed it had shed 200 jobs and exited six of its 36 global office locations.
Giamatteo said Wednesday that he considered the work done so far “a significant achievement” that will deliver US$125 million in total savings.
“I’m proud of how far we’ve come in such a short period of time,” said Giamatteo, who took the helm of BlackBerry in December 2023.
His remarks came as the company reported a US$42-million net loss in its first quarter compared with a US$11-million net loss.
BlackBerry, which reports its financial performance in U.S. dollars, said the results amounted to a loss of seven cents US per share, compared with two cents US per share a year prior.
Its revenue for the period ended May 31 amounted to US$144 million, down from US$373 million a year prior.
Its cybersecurity business was responsible for about US$85 million of the revenue, while its Internet of Things division earned US$53 million and its licensing segment US$6 million.
Giamatteo said he considered the results a sign that “our strategy is working” and the business is well-prepared for its forthcoming division.
However, he conceded the company isn’t ready to sit back and relax just yet.
“We still have a lot of work to do,” he said. “We know that, but we do believe our strategy is starting to deliver results.”
Looking forward, BlackBerry expects its revenue to land somewhere between US$136 million and US$144 million next quarter. By the time its current fiscal year wraps, it anticipates full-year revenue to have hit between US$586 million and US$616 million
This report by The Canadian Press was first published June 26, 2024.
Companies in this story: (TSX: BB)
