BlackBerry Ltd (NASDAQ:BBRY) CEO John S. Chen has said that the company is focusing on doubling its software revenue next year. The company recorder $250 million in software revenue in its second quarter financial report released Friday.
The report showed that the Waterloo, Ontario-based company had reported a second successive loss, though this time the loss was smaller. The net loss was posted at $207 million, meaning 39 cents a share. That figure shows a big improvement on the stock which reported $965 million in the same quarter last year.
For the first time in 5 financial quarters, BlackBerry Ltd (NASDAQ:BBRY) reported adjusted earnings on its hardware segment. This was attributed to low productions costs and Z3 smartphone, which performed well in emerging markets.
“This is the first time in a long time that we have actually made money on hardware,” chief executive John Chen told reporter. “We think we can continue on that track, so hardware is no longer going to be a drag to the margin and the earnings.”
BlackBerry Ltd (NASDAQ:BBRY) is focusing on maintaining a strong cash flow. The company also said that they will be looking for new investment opportunities that will help spur the company’s growth. The CEO emphasized that BlackBerry Ltd (NASDAQ:BBRY) is looking at breaking even in its cash flow report at the close of 2015 financial year.
The smartphone and software company has been facing stiff competition from companies such as Apple Inc and devices that run on Android operating system. Google Inc.’s Android is installed in about 80% of all mobile devices, making it the market leader in mobile OS. Many tech companies turned their focus on software and services to make their hardware more useful to users.
However, BlackBerry Ltd (NASDAQ:BBRY) isn’t taking it lightly. The company has reiterated that it will invest more efforts and resources in software and services.
BlackBerry Ltd (NASDAQ:BBRY) has also released a new smartphone called Passport into the market and the company is hoping that the new device will help boost its hardware sales.
This article has been written by Victor Ochieng.