BlackBerry manages to lose money when others earn it
The pandemic has had a very positive impact on technology companies, which have been actively increasing revenue due to the growing demand for their services. However, 2020 was not a positive year for everyone in the industry.
According to the latest BlackBerry report, revenue for the fourth quarter of 2020 was $210 million, and non-GAAP revenue was only $5 million higher. At the conference call three months ago, management expected to earn about $246 million by the end of the quarter. Although this figure would fall short of last year's values by 15%.
Such weak results are explained by the fact that the company was negotiating the sale of some of its patents related to mobile devices, messaging and wireless communications, as a result of which the corresponding royalties were frozen. However, the difficulties did not end there: other income was also lower than in the previous quarter.
BlackBerry continues to show extremely weak dynamics under the management of John Chen, despite a number of acquired companies. One could be happy that the firm managed to get a minimum positive non-GAAP profit, but the problem is that the adjusted indicator did not take into account the impact of some of the key expenses that appear in a completely normal business environment. In addition, under the agreement with the SEC, BlackBerry will no longer provide non-GAAP data, so the financial results will look even more expressionless.