BlackBerry Ltd (NASDAQ:BBRY) CEO John Chen acknowledged that the company would exit the handset business if it continues to be unprofitable. BlackBerry is focusing more on enterprises, investments, acquisitions, and partnerships – specifically in the healthcare, financial, and legal service industries.
“If I cannot make money on handsets, I will not be in the handset business,” said BlackBerry CEO John Chen in an interview with Reuters. “We are building an engineering team on the service side that is focused on security. We are building an engineering team on the device side that is focused on security. We will do some partnerships and we will probably, potentially do an M&A on security.”
Chen said that prior management “had the luxury to bet the world would come to it. I don’t have the luxury at all. I’m losing money and burning cash.” This is why he has to make snap decisions in the short term.
BlackBerry reported a quarterly net loss of $423 million in March, which is a 64% drop in its revenues. BlackBerry is on track to be cash-flow positive by the end of the fiscal year, ending February 2015.