STREAMING NOW: Watch Now

BlackBerry's comeback continues

BlackBerry's transformation from struggling smartphone company into a burgeoning leader in cybersecurity sof...

Posted: Sep 28, 2018 3:27 PM
Updated: Sep 28, 2018 3:27 PM

BlackBerry's transformation from struggling smartphone company into a burgeoning leader in cybersecurity software and connected cars is on track.

The company now generates more than 90% of its total revenue from software and services. And 81% of those sales are recurring. In other words, BlackBerry is no longer subject to the fickle tastes of consumers and has hitched its wagon to corporate customers.

BlackBerry reported profits and sales Friday morning for its latest quarter that topped Wall Street's forecasts. The stock was up more than 15% in late morning trading on the news.

CEO John Chen, speaking to CNN Friday, said the company's biggest successes this quarter were in the connected and autonomous car market, with revenue growth of about 30% for the business unit that includes the QNX software business for cars.

Chen said BlackBerry is working hard to win more customers in the automotive market, pointing to a deal it announced in January with Chinese search engine giant Baidu to jointly develop self-driving cars.

The company, under Chen, realized a few years ago that it was a losing battle making devices that generated razor-thin profit margins at a time when Apple and Samsung dominate the smartphone race.

That's why BlackBerry decided in 2016 to stop making its own phones and outsource the production of devices with the BlackBerry name on them to other manufacturers.

Since then, BlackBerry has gone all-in on software.

BlackBerry hoping for a new 'Spark'

So what's next? Chen said he's hopeful that BlackBerry's new Spark security platform, which is kind of like instant messaging on steroids, can make a bigger presence in the health care market. Spark integrates video chat, texts and other forms media.

BlackBerry is targeting health to help the company expand beyond its core markets of transportation, governments and financial services companies.

Investors are pleased with the turnaround too. BlackBerry's stock is up more than 60% since Chen took over nearly five years ago. That's solid, but it has lagged the performance of Apple as well as the Nasdaq.

Still, Chen has cleaned up BlackBerry's balance sheet. The company now has $2.4 billion in cash and just $740 million in long-term debt. Rumors about BlackBerry going out of business are no longer running rampant the way they were before Chen joined.

BlackBerry's board is happy with Chen's leadership as well. BlackBerry announced in March that it was extending Chen's contract through November 2023.

That may also put to rest some of the rumors that Chen was only going to stick around long enough to sell BlackBerry to a larger rival.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 31257

Reported Deaths: 1114
CountyConfirmedDeaths
Hinds253640
DeSoto162016
Madison131434
Jones112849
Neshoba99271
Rankin95112
Harrison93311
Lauderdale91079
Forrest87842
Scott77315
Jackson63816
Copiah60715
Washington5919
Leake57819
Holmes55741
Lee55219
Wayne54513
Oktibbeha54126
Warren51618
Yazoo5136
Lowndes49413
Leflore49151
Grenada4905
Lincoln46634
Lamar4657
Pike44112
Monroe40330
Sunflower4008
Lafayette3934
Attala36123
Covington3595
Panola3526
Bolivar34014
Newton3399
Simpson3233
Adams31318
Pontotoc2926
Tate28810
Marion28411
Chickasaw27918
Claiborne27910
Noxubee2678
Winston2666
Jasper2636
Pearl River25732
Clay25111
Marshall2343
Smith21811
Union2109
Clarke20724
Walthall2045
Coahoma2016
Kemper17914
Lawrence1782
Yalobusha1737
Carroll16611
Humphreys1509
Tallahatchie1374
Itawamba1368
Montgomery1352
Calhoun1324
Tippah13111
Hancock13013
Webster12710
Jefferson Davis1124
Jefferson1083
Prentiss1083
Greene1058
Tunica1053
Wilkinson949
Amite912
George893
Tishomingo831
Quitman780
Choctaw744
Alcorn712
Perry674
Stone651
Franklin452
Benton380
Sharkey380
Issaquena91
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 44375

Reported Deaths: 984
CountyConfirmedDeaths
Jefferson5410152
Montgomery4158103
Mobile4129134
Tuscaloosa232142
Marshall172410
Madison14917
Lee141137
Shelby133423
Morgan11215
Walker97824
Elmore94314
Franklin89814
Baldwin8949
Dallas8919
Etowah75013
DeKalb7375
Chambers64227
Butler63428
Autauga61012
Tallapoosa60569
Russell5650
Houston5074
Unassigned50323
Limestone5010
Lauderdale4966
Lowndes47221
Cullman4594
Pike4375
Colbert4086
St. Clair4022
Escambia3966
Coffee3812
Calhoun3765
Covington3707
Bullock36910
Barbour3532
Talladega3177
Hale31421
Marengo31211
Dale2990
Wilcox2948
Sumter28512
Jackson2842
Clarke2776
Winston2633
Chilton2522
Blount2431
Monroe2392
Pickens2366
Marion23313
Conecuh2107
Randolph2099
Macon1999
Choctaw19512
Bibb1941
Greene1868
Perry1791
Henry1363
Crenshaw1253
Washington1117
Lawrence1100
Cherokee1027
Geneva830
Lamar781
Fayette711
Clay692
Coosa591
Cleburne381
Out of AL00
Tupelo
Clear
75° wxIcon
Hi: 91° Lo: 74°
Feels Like: 75°
Columbus
Overcast
72° wxIcon
Hi: 88° Lo: 72°
Feels Like: 72°
Oxford
Clear
70° wxIcon
Hi: 88° Lo: 71°
Feels Like: 70°
Starkville
Overcast
70° wxIcon
Hi: 86° Lo: 70°
Feels Like: 70°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather