After a year of surpassing expectations under CEO John Chen, BlackBerry has fumbled.
BlackBerry’s fiscal third-quarter financial report showed some chinks in the Canadian company’s armor. Revenue dropped 34% to less than $800 million, well below analysts’ estimates. Shares tanked nearly 10% before recovering partially.
Chen described the quarter as “not satisfying.” However, he did point to the fact that BlackBerry turned a profit—though only of one cent a share. Experts are suggesting investors shouldn’t let the revenue slip distract from the fact the Waterloo-based smartphone maker has generated positive cash flow a quarter ahead of schedule.
BlackBerry sold two million smartphones. The Classic, a reimaging the of the company’s Bold smartphone from years past, is seeing higher demand than the Passport, its premium flagship device, according to Chen.