Chief Executive of BlackBerry Limited (NASDAQ:BBRY) [Detail Analytic Report], John Chen stated optimistically in a recent interview that that BlackBerry’s smartphone unit will turn profitable in the near future, according to CNBC. Not long ago, Chen insisted that hardware profitability is significant to the firm, among other software and services business. He added that the firm is very close to achieving the goal. Amid speculations of shuttering the hardware unit, Chen reiterated that he truly believes this firm will be making smartphones for a longtime. Moreover, Chen stated that the firm is stepping up to release two BlackBerry handsets between now and later 2016.
Chen also confidently added that BlackBerry has a hardware roadmap beyond the two devices under development. Part of BlackBerry’s fourth quarter 2016 losses should be attributed to the not-so-impressive sales numbers of the Android Lollipop-powered BlackBerry Priv, released toward the end of last year, according to the Wall Street Journal. BlackBerry reportedly sold around 600,000 units of smartphones in fourth quarter. In an earlier interview, Chen stated that if the firm cannot make the hardware unit profitable, the firm may look at other avenues like software and services.
BlackBerry’s mobile-based software and services business helped the firm in the latest quarter. However, nearly 30% loss in revenue shows the firm is struggling with the hardware unit. BlackBerry’s sales from software and services business accounted for $153 million in that quarter, with the total standing at $527 million for the fiscal year, competing February 29. It is worth noting that the target was apparently $500 million. Even though it exceeded the target by a slight margin, the Canadian tech giant’s overall revenue for the quarter declined to $464 million.
Chairman and Chief Executive of Glu Mobile, Inc. (NASDAQ:GLUU) [Detail Analytic Report], Niccolo de Masi commented during first quarter conference call that their Q1 guidance outperformance was primarily due to the strong Kendall and Kylie launch as well as the ongoing success of Kim Kardashian: Hollywood and Cooking Dash. They are delighted with the traction of their Tap Sports Baseball 2016 title which is currently the top grossing baseball game on the US App Store for iPhone and has positioned them to grow revenues from this franchise for the consecutive third year.
De Masi added during the period, their new studio leadership team implemented a number of operational improvements which they expect to enhance their product delivery as well as to cut the run-rate revenue required for Glu to breakeven. The combination of the new studio label system along with a strong line-up of new titles, including Britney Spears: American Dream and Gordon Ramsay: Dash, positions the firm for growth during the second half of this year and beyond.
Eric R. Ludwig, Chief Financial Officer of the firm stated that they were pleased with their Q1 execution as they exceeded expectations across all significant metrics. The combination of Glu’s strong balance sheet, robust line up of new titles and reduced fixed cost structure positions the firm to enhance investor value longer-term. Glu Mobile declared lower than expected quarterly sales and reported that it was cutting its workforce by around 85. Glu disclosed that it expected to incur pre-tax charges of about $2.25 to $3.0 million related to the restructuring, expected to be completed by December 31.
Colfax Corporation (NYSE:CFX) [Detail Analytic Report] announced earnings of $22.6 million in its first quarter. The Maryland-situated firm disclosed that it had profit of 18 cents a share. Earnings, revised for one-time gains and costs, were 30 cents a share. The results beat Wall Street outlooks. The average estimate of experts polled by Zacks Investment Research was for earnings of 27 cents a share.
Colfax Corporation declared its first quarter revenue of $876.8 million, also beating Street forecasts. According to analysts polled by Zacks has expected $825.1 million. Shares of Colfax have soared 37 percent since the starting of the year. The stock has dropped 35 percent in the previous twelve months.
Matthew Trerotola, President and Chief Executive Officer commented that they are pleased to announce operating results that were in line with the anticipations they discussed in December. They are making very good progress on their cost cut initiatives, but their progress on growth initiatives continues to be largely offset by the choppy end market environment. While end market trends are mixed, solid performance in their shorter-cycle and aftermarket businesses is anticipated to largely offset the increased risk to project bookings for the balance of the year.