The BlackBerry logo is shown in the lobby of the company's B building in Waterloo, Ont. on Tuesday, May 29, 2018. Shares of BlackBerry Ltd. were down more than 10 per cent after the company released its latest quarterly results and its new chief executive said he has his eye on cutting costs.THE CANADIAN PRESS/Andrew Ryan
The stock value of BlackBerry Ltd. declined by 13.5% following the release of its latest quarterly results, accompanied by statements from the new CEO, John Giamatteo, expressing intentions to focus on cost-cutting measures. The company's shares concluded at $4.74 on the Toronto Stock Exchange, experiencing a decrease of 74 cents.
Giamatteo, who assumed the role of CEO earlier this month, emphasized the priority of steering BlackBerry back to profitability and positive cash flow. Achieving these goals may necessitate challenging decisions regarding the company's cost structure. Despite canceling plans for an initial public offering of its internet of things (IoT) business, BlackBerry still intends to divide its operations.
The company, reporting its earnings in U.S. dollars, disclosed a loss of US$21 million (five cents per diluted share) on US$175 million in revenue for the period ending Nov. 30. This is compared to a loss of US$4 million (nine cents per diluted share) on US$169 million in revenue for the same period the previous year.
Looking ahead to its fourth quarter ending Feb. 29, BlackBerry anticipates revenue in the range of US$150 million to US$159 million. The cyber business is expected to contribute up to US$88 million, while the Internet of Things offerings may contribute up to US$66 million to the total revenue.
