BlackBerry continues restructuring with $42 million Q1 net loss

CEO notes despite losses, their strategy is starting to deliver results

BlackBerry continues restructuring with $42 million Q1 net loss

BlackBerry Ltd. reported a net loss of US$42 million for its first quarter, continuing its efforts to streamline operations and save costs. The Waterloo-based company has made substantial progress in its plan to divide its cybersecurity and Internet of Things (IoT) businesses, according to chief executive John Giamatteo.

Giamatteo, who has been leading BlackBerry since December 2023, shared with analysts that the restructuring efforts have already resulted in millions of dollars in savings. According to Bloomberg, these efforts include reducing back-office roles and facilities, delegating responsibilities, and launching IT systems projects. Although he did not provide specific numbers regarding the extent of job cuts or site closures, the company had previously announced in February that it had cut 200 jobs and closed six of its 36 global offices.

“I’m proud of how far we’ve come in such a short period of time,” said Giamatteo. He highlighted that these measures are expected to deliver a total of US$125 million in savings.

Bloomberg noted the company’s Q1 financial results showed a deepening net loss of US$42 million, or seven cents per share, compared to a net loss of US$11 million, or two cents per share, in the same period last year. Revenue for the quarter ended May 31 was US$144 million, a significant drop from US$373 million a year earlier.

The breakdown of BlackBerry’s revenue showed US$85 million generated from its cybersecurity business, US$53 million from its IoT division, and US$6 million from its licensing segment.

Giamatteo expressed confidence in the company’s strategy, stating, “Our strategy is working,” and the business is well-prepared for its forthcoming division. However, he acknowledged that more work lies ahead. “We still have a lot of work to do,” he said. “We know that, but we do believe our strategy is starting to deliver results.”

Looking forward, BlackBerry projects its revenue for the next quarter to be between US$136 million and US$144 million. For the full fiscal year, the company expects to achieve revenue in the range of US$586 million to US$616 million.