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Printed Sep 26, 2024 • 2 minute learn
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BlackBerry Ltd. executives mentioned the corporate has made good progress in its efforts to chop prices because it reported a slimmer loss in its newest quarter than the prior yr.
“This was a superb quarter for BlackBerry,” mentioned CEO John Giamatteo on a name with analysts.
“The onerous work that the crew has finished with managing prices is basically paying off, with working bills now considerably decrease than prior yr.”
BlackBerry reported a internet lack of US$19 million in its second quarter, in contrast with a US$42-million internet loss a yr earlier.
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The Waterloo, Ont.-headquartered firm says income for the quarter ended Aug. 31 was US$145 million, up from US$132 million throughout the identical quarter final yr.
The corporate says income for each its cybersecurity and Web of Issues divisions grew by double digits yr over yr. Income for the cybersecurity division was US$87 million, whereas the Web of Issues division introduced in US$55 million.
BlackBerry has been engaged on splitting the 2 divisions. It introduced the deliberate cut up final October, saying it supposed to pursue a subsidiary public providing for the Web of Issues enterprise after evaluating a variety of strategic alternate options for the corporate.
The corporate made “great progress” on the cut up throughout the quarter, mentioned Giamatteo, with a lot of the “low-hanging fruit” out of the way in which.Nonetheless, he mentioned the corporate is attempting to strike the fitting steadiness because it tackles a number of the extra sophisticated elements of the cut up.
“A few of these issues are naturally somewhat bit extra intertwined,” he mentioned.
This previous quarter, BlackBerry mentioned its adjusted working bills got here in at US$99 million, down from US$114 million a yr earlier.
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In February this yr, BlackBerry introduced it was reducing 200 jobs and exiting six of its 36 international workplace areas.
“Price stays a key focus going into the second half, and through September, we introduced a variety of additional back-office headcount reductions and services closures as we continued to streamline operations,” mentioned Tim Foote, the corporate’s new chief monetary officer, on the decision.
“The brand new administration crew at BlackBerry has managed to string the needle of considerably lowering prices, whereas on the similar time managing to stabilize the highest line and even drive development,” Foote mentioned.
Foote’s appointment was introduced close to the tip of July, succeeding Steve Rai. He was most not too long ago the CFO for BlackBerry’s cybersecurity division.
The corporate raised the underside finish of its full-year steerage for its Web of Issues division.
Diluted loss per share got here in at three cents US, in contrast with seven cents US final yr.
This report by The Canadian Press was first revealed Sept. 26, 2024.
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