Blackberry (BBRY) stocks went up a surprising 4 percent, opening at $15.18 at the start of NASDAQ trading today.
Trading went up after BlackBerry released its 4th Quarter Revenue report showing a surprise profit in the fiscal which ended on March 2. The report said that there is a possibility that Q1 will also show a profit.
Blackberry disclosed that it made a total of $18.5 billion in total sales last year. A 6.28 percent profit margin gave BlackBerry a $ 1.2 B profit at the end of their fiscal year. A fact that came as a welcome surprise, triggering a buying spark from the public.
Analysts polled by Thomson Reuters had expected the company to lose 29 cents per share. BlackBerry was reported to have lost $118 million in 2011. Present CEO and Director, Thorsten Heins, attributed the turnaround due to the measures that the company has implemented during the past year.
Heins was quoted as saying, “We have implemented numerous changes at BlackBerry over the past year and those changes have resulted in the Company returning to profitability in the fourth quarter, including the anticipated 50 percent sequential increase in marketing spending. The Company believes it will approach breakeven financial results in the first quarter based on its lower cost base, more efficient supply chain, and improved hardware margins.”
Reports said that BlackBerry has already shipped 6 million handsets including 1 million new Z10 (BlackBerry 10) units. The company is forecasting an operating profit in the first quarter of 2013 based on the good reception of its Z10.
During a conference call with analysts, Heins shared the company’s vision to expand from just being a Smartphone company to being a leader in mobile computing. Heins foresees several areas for potential revenue growth for the company, and says that they will be looking into healthcare, security, defense, enterprise and the licensing of the BlackBerry 10.
Blackberry has high hopes that its new operating system will help turn the company around and attract longer term investors.
During his speech, Heins confirmed that the Q10 handset, Blackberry’s newest Smartphone which was announced last January will finally be out in the market in April.
Blackberry also announced the retirement of co-founder Mike Lazardis which will take effect on May 1, 2013. Mike Lazardis, formally announced last week that he is setting up a new venture fund called Quantum Valley Investments.