Topic: How To Invest

The Successful Investor Hotline – Friday, December 23, 2016

Article Excerpt

PLEASE NOTE: This is our last Hotline for 2016. Our next Hotline will go out on Friday, January 6, 2017. BLACKBERRY LTD., $9.51, Toronto symbol BB, has started to benefit from its plan to cut its reliance on smartphones and focus on producing and selling software. In the fiscal 2017 third quarter, ended November 30, 2016, the company’s revenue fell 47.3%, to $289 million from $548 million a year earlier (all amounts except share price in U.S. dollars). That missed the consensus forecast of $320 million. Revenue from BlackBerry’s software and services business (55% of the total) was unchanged. Contributions from recent acquisitions offset lower licencing revenue. However, 80% of this business’s revenue now comes from recurring subscriptions. Revenue from the sale of its phones and other mobile solutions (23%) fell 68.2%. That’s because BlackBerry has outsourced the development of new phones to other manufacturers. Due to a drop in the number of older BlackBerry handsets in use, revenue from the fees it…