- With a lot of bad news priced in, BlackBerry (BBRY +13.6%) has shot higher following its FQ3 report, as investors applaud a Foxconn deal that (for now) will limit BlackBerry's in-house phone design work to a limited number of high-end enterprise devices. Talking to CNBC (video), John Chen asserts the deal will help BlackBerry become profitable by FY16 (ends Feb. '16).
- Chen: "The number one thing I noticed (as CEO) was that our handset volume was dropping and with that, our [fixed] cost was too high ... [Foxconn] has the ability to bring the cost down ... The focus of the overall company is shifting toward enterprise, government customers and software services."
- With BlackBerry expected to lose $1.37/share in FY14 and $1.10/share in FY15, a return to profitability in FY16 would represent a major turnaround.
- Also: On the CC (transcript), Chen stated BlackBerry is aiming to become "cash flow neutral from operations" in FY15, and expects "reasonably good revenue" from BBM around the FY16 timeframe.
- Short-covering is likely contributing to today's gains: 33% of the float was shorted as of Nov. 29.
- More on BlackBerry
From other sites
Video at CNBC.com (Jun 2, 2015)
Video at CNBC.com (May 26, 2015)
at CNBC.com (May 24, 2015)
at CNBC.com (May 7, 2015)
at CNBC.com (Mar 27, 2015)
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