Is BlackBerry Ltd.'s Turnaround Taking Shape?

BlackBerry pops after it reports a surprisingly solid quarter. Operating costs are coming down and the company is making progress with its turnaround.

Jun 22, 2014 at 11:30AM

Shares of BlackBerry (NASDAQ:BBRY) shot up last week after the company reported better-than-expected earnings. BlackBerry posted a surprise profit, which was a dramatic improvement compared with the $423 million loss from the prior quarter. Gross margin also improved to 48%, while cash increased sequentially to $3.1 billion. That increase in cash was entirely attributable to selling real estate and getting a tax refund, and excluding those one-time items the company burned through $255 million.

BlackBerry recognized revenue on 1.6 million phones, while 2.6 million units were sold through to end customers. On the conference call, management said that roughly two-thirds of recognized revenue was from BlackBerry 10 devices, which implies that most of the sell-through was from older BlackBerry 7 phones. CEO John Chen also believes that the company can be profitable on hardware if it ships 10 million phones next year, and BlackBerry also announced its new Passport device to address the phablet market.

The struggling smartphone maker is making progress with its turnaround, as operating expenses were down 40% from a year ago. Going forward, it may be difficult to continue reducing costs as BlackBerry's network operations have high fixed costs. BlackBerry has legitimate strengths in software and services, but its hardware business leaves a little to be desired.

In this segment of Tech Teardown, Erin Kennedy discusses BlackBerry's earnings with Evan Niu, CFA.

(Relevant segment begins at 6:53.)

Warren Buffett's biggest fear is about to come true
Warren Buffett just called this emerging technology a "real threat" to his biggest cash cow. While Buffett shakes in his billionaire boots, only a few investors are embracing this new market, which experts say will be worth over $2 trillion. It won't be long before everyone on Wall Street wises up, and that's why The Motley Fool is releasing this timely investor alert. Click here to learn more about what's keeping Buffett up at night and the one public company we're calling the brains behind the technology.

Erin Kennedy, Evan Niu, CFA, and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers