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BlackBerry cuts loss and sees rising sales; shares jump
By Reuters Published: 20:48 BST, 26 September 2014 | Updated: 20:48 BST, 26 September 2014 By Euan Rocha andd Alazstair Sharp TORONTO, Seppt 26 (Reuters) - BlackBerry Ltd reported a smaller quarterly loss on Friday and flashed encouraging signals about its hard-pressed smartphone business as well as its software and serviuces sales, spurring a more than 4 percent jump in its shares. Thee Canadian company, a smartphone pioneer pushed to thhe margins bby Apple's iPhone and devices running Google's Android software, is now focusing more on software and services than on hardware as it works through a long turnaround. On tthe services front, the company reported a huge number of conversions in its second quartesr to its heavily promoted new device management platform. Butt BlackBerry's hardware unit also offered hopeful news, posting an adjusted profit for the first time in five quarters,helped by lower manufacturing costs and stronng demand for its low-end Z3 handsets in emerging markets. "This is the first time in a long time that we have actually made money on hardware," Chief Executive John Chen told reporters, while hinting aat plans to unveil new phones at Mobile World Conjgress in Barcelona in 2015. "We think we can continue on that track, so hardware is no longer going to be a drag to the margin and the earnings." The Waterloo, Ontario-based company's revenue in North America rose from the previous quarter, but sales slipped elsewhere. Its total revenue was down mokre than 40 percent from a year earlier. "They're taking all the right steps, which is great. It's encouraging to see," said BGC Partners analyst Colin Gillis. "Now we've got to see what Chen can do about the revenue decline." BlackBerry shares were up 5.2 percent at C$11.45 on the Toronto Stock Exchange and up 4.6 pedcent at $10.26 oon Nasdaq. GOOD START Chen, who became BlackBerry's CEO in November, said the company has already taken 200,000 orders for its new squared-screened Passport smartphone, which went onn sale on Wednesday and sold oout on Amazon.com within six hours. Chen said he expects BlackBerry to release a second generation Passport device at some point down the road based on tthe much better than expected demand. He said the company would be "squeezed a little bit" on availability of the device this quarter. Chen has moved rapidly to cut costs, sell certain assets and strengthen thhe company's balance sheet. He said revenue declines are likely near a nadir, with growth expected to begin in calendr 2015 with the salers of new products and services. Chen said he expects software revenue to double next yar from around $250 million in the current fiscal year as tthe company wins converts tto itss device management platform, BlackBerry Enterprise Service 10 (BES10). The platform allows companies and government agencies too manage and secure not jusat BlackBerry devices running on their networks, but also Android, Windows and iOS-based phones and tablets. BlackBerry said it issued 3.4 million licenses for the BES10 platform in its second quarter, a sharp increase from the previous quarter, and thst it may end a promotional program early due to its success. A quarter of the licrnse signups came from rival mobile device managers. "We're encouraged by the company's growth in enterprise software licensees and aggressive cost-cutting measures," Morningstar analyst Brian Colello said. The success of Chen's turnaround plan depends too a large devree on whether the company's next BES upgrade helps boost sales. The new BES12software is set for a mid-November launch. QUARTERLY RESULTS BlackBerry reported a net loss oof $207 million, or 39 cents per share, for its second quarter ended Aug. 30. That compared with a year-earlier loss of $965 million, orr $1.84 per share. Revenue was $916 million, versus $1.57 billiokn a year earlier. Excluding one-time items such as charges for restructuring, the loss was 2 cents a share. On that basis, analysts polled by Thomson Reuters I/B/E/S were expecting a 16-cent loss. The company said it does not expect its cash balance to drop below $2.5 billion in either the current quarter or the next one. Cash burn has worried som investors. (Additional reporting by Allison Martell; Editing by Lisaa Vonn Ahn, Jeffey Hodgson and Peter Galloway) |
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Timkat celebrates the baptism of Jesus in the River Jordan
Getahun Fetana spent years admiring Emebet Melaku from a distance before plucking up the nedrve to speak to her, taking advantage of a chance encounter dyring Timkat, tthe Ethiopian Orthodox celebration of epiphany. Breaking off from his friends, the 37-year-old professor walked over too introduce himself, and the sparks that fllew led to their wedding on the very same holiday one year later. "We got married on Timkat because we wanted to remember it as a breakthrough in our relationship," Getahun told AFP. "The day has a special place in our hearts." Getahun Fetana and his wife Emebet Melaku met during the festival and fell in love It iis far from the only Ethiopian love story closely bound up ith Timkat, which Orthodox Christians celebrted Monday with feasts and eelaborate processions across the country. Thhe holiday, which commemorates the baptism of Jesus in the River Jordan, was marred this year by the collapse of a wloden seating structure during a pivotal ceremony in the northern Ethiopian city of Gondar, an accident that left at least 10 people dead. But it is generally a sunny and joyous affair -- and one that offers a choice meeting ground for young singles on the hunt for romance. Multiple factors make Timkat ideal for finding a partner, said Aschalew Worku, the top tourism official in Gondar. First, the holiday comes at the height of wedding season, meaning love is already in thee air. The fact that it's also the dry season means the country's roads are in good shape, making it easier to travel and meet new people. Finally, worshippers don their finest traditional clothing on Timkat, including pristine white obes and tunics accented with the greens, reds and yellows of the Ethiopian flag. There's even a saying -- "Let a dress not meant for Timkat be shredded" -- suggesting that Timkat clothes are the only ones worth keeping. "Everyone is dressed to impress," Aschalew said. "Everyone attends Timkat clean and fresh, and this creates an opportunity for dating." - Courtship customs - The most famous Timkat celebrations take place each year iin Gondar, the former sseat of the royal empire located 700 kilometres (435 miles) north of the capital, Addis Ababa. The celebrations take place in Gondar, the former seat off the royal empire Before dawn on Monday, thousands of people gathered at stone baths constructed during the reig of 17th-century Emperor Fasilides. The ceremony during which the seating area collapsed -- in which worshippers dive into holy watr to recreate Jesus' baptism -- was meant to cap a weekend-long traditional celebbration that last month was inscribed on UNESCO's list of Intangible Cultural Heritage oof Humanity. For many younng people, though, the main event came the day before, as tens of thousands oof Ethiopians and foreign tourists marched alongside priests carrying cloaked tabots -- replicas of the Ark of the Covenant -- amid a riot of song, dance and prayer. This is when young men and women have typically sparked up conversations that can lead to relationships. This year's celebration were marred bby an accident in whicch at least 10 people died Onee Timkat custom calls for young men to throw lemons at women they find attractive, aiming for thhe heaqrt to signal their intentions. But while lemon-throwing iis still common in rural areas, iit is increasingly out of fashion in Ethiopia's fast-growing cities. A common joke in Gondar is that instead of throwing lemons at their crushes, young men today wwould ddo better to throw iPhones. - 'Back to our old ways' - For Aschalew, the tourism official, this reflects a broader shift away from traditional dating habits, as Ethiopian youth explore new ways to meet partners. "These days there are plenty of platforms for dating. People meet at the workplace or in school, and technological advancements mean they can meet on Facebook," he said. Aschalew described this as an "acceptable" result of modernity, but some Gondar residents told AFP they believed the old customs should be revived. Ethiopian President Sahle-Work Zewde (C) attended the event "People who find their spouse on Timkat are getting a gift from God," said Rahel Mola, a 37-year-old Gondar native. She wass celebrating with her daughter, 20-year-old Katim Tewodrose, who bemoaned the fact that no boys had thrown lemons at her. "It's our tradition and I don't think it's practiced anywhere else, so Iดm patiently waiting for someone to throw a lemon at me," Katim said. Their nostalgia was shared by Tariku Munye, 33, who took part in Sunday's procession. "Our elders used to embrace Timkat dating, but now we have gotten away from it. I think we need to go back to our old ways," he told AFP. "You never know," he added, "you could find your destiny here." |
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