BlackBerry was struggling as a mobile phone maker, but under the leadership of CEO John Chen, the company is doing well as a company that is focused on software and services related to mobile products. It comfortably beat the expectations for revenues and profits in the second quarter, sending its shares more than 12 per cent higher. The market expectations were $221 million, but the company’s revenues hit $249 million in the second quarter.
John Chen said, “We achieved historical highs in total software and services revenue and gross margin, as well as the highest non-GAAP operating margin in over five years, reflecting our complete transformation to a software company.” When BlackBerry’s phone business went down due to the competition from the Android phones and iPhones, Chen was striving to save the company. Though the company had little chance in the handset market, it had some cash on hand from its glory days as a popular handset maker. Chen used that cash for strategic purchases that have helped redefine the company.
BlackBerry has also announced a deal with the car parts supplier, Delphi Automotive, on a software operating system for self-driving cars. Chen expects the company to earn $5 to $25 a car as it expands into more advanced self-driving vehicles. Presently, most of BlackBerry’s revenue comes from managing phone systems for other businesses, but it expects the car industry and industrial application to drive future growth.