A Canadian Company Blackberry is not earning a profit as expected.T he company indicated that sales of BlackBerry are slowing in its software and services business as it switches to a subscription-based model and BlackBerry company’s share went down nearly 10 percent. As the company expected the business growth of BlackBerry of 8 percent to 10 percent growth in 2019 that is compared with 20 percent in 2018, overshadowing its first-quarter revenue and profit beat.

 

 

BlackBerry’s Chief Executive Officer John Chen said on a post-earnings call that the company BlackBerry will not be selling its software and services on a licensing basis anymore and it will not have to convince companies to agree to subscriptions. Analyst Ali Mogharabi added that the sales of the company are going down due to inability to recognize enterprise software revenues based on subscriptions. while a number of software companies that is including Oracle and Adobe Systems are moving much of their services to the cloud and relying on subscriptions for a fixed stream of revenue. Company’s CEO John Chen further said that he believes that the company will accomplish the goal of 90 percent-plus in recurring software and services revenue within a year.

A Canadian Company BlackBerry that has power and influence over the smartphone market nearly a decade ago before losing out to Apple Inc’s iPhones and Android devices has been trying to win a confidence for those who put money into it and it also want to make money by selling software to manage mobile devices for corporations and government agencies. The company BlackBerry is also concentrating on making software for next-generation driverless cars based on its QNX platform as being the part of the transition.

CFRA Researcher Angelo Zino said the investors need to keep a long-term view on the company as the turnaround is working for BlackBerry and he further added that the company is still adjusting every quarter from the winding of their hardware business so you can not see big top-line and bottom-line growth.
Canadian Company BlackBerry has a partnership with Tata Motors Ltd s Jaguar, Ford Motor Co and auto technology companies Denso and Aptiv Plc.
Total loss of the BlackBerry in the first quarter was $60 million and 11 cents per share as compared with a profit of $671 million and $1.23 per share a year before. The comparable quarter reflected a one-time intervention payment of $940 million from Qualcomm Inc.