BlackBerry ends two year wait for profitability

BlackBerry ends two year wait for profitability

Canadian smartphone manufacturer BlackBerry has announced that it has returned to profitability after two years.

According to Market Realist, the firm made a non-GAAP (generally accepted accounting principles profit) of $0.01 per share, compared to continued losses in the prior few quarters.

It came close to breaking even in fiscal 2Q15, finally turning profitable in the final quarter.

However, the firm continues to take a net loss on a GAAP basis, recording a net GAAP loss of $0.28 per share in the last quarter.

That figure was mainly due to the non-cash charge of $150 million (£98.85 million) for its convertible debt.

The firm has attributed its return to profitability to a close attention to the management of expenses and efforts towards cost-cutting.

It marks a substantial level of success for chief executive John Chen, who said that returning to profitability was one of the most pressing concerns, when he joined the company in November 2013.

He is widely seen by many analysts as one of the key factors in turning the company around, despite admitting that the firm will struggle to meet the competition from Apple and Android-based devices in the regular consumer market.

That has seen the company place a greater focus on catering for corporate customers, offering mobile security software for companies, as well as new handsets.

This week saw the company become the subject of rumours in South Korea, which suggested it was set to be the subject of a takeover approach from rival company Samsung.

However, those reports appear to have been denied by both companies, although investors have clearly seen an improvement in confidence as BlackBerry's shares surged at their highest rate in around ten years.

Considering the expertise Samsung has displayed towards creating popular smartphones and the ability for BlackBerry to create cutting edge mobile software, it could be a good move for both firms.