The design of smartphones by BlackBerry has come to an end. The company has decided to outsource this activity to "reduce capital requirements and increase the return on investment", as explained by the same CEO John Chen, in a note from the group. The company has stipulated for this reason a licensing agreement with a joint venture in Indonesia, BB Merah Putih for the production, distribution and promotion of BlackBerry devices. In the second quarter, the Canadian company reported a loss of $ 372 million, equivalent to $ 0.71 per share. In the same period of 2015, the result was positive by $ 51 million.
The company will focus on continuing the development of software for security and similar applications. Even so, total revenue last quarter are below the expectations of analysts, who expected a loss of $ 490 million in the second quarter of 2015. Revenue from software and services increased about 89% to $ 138 million. BlackBerry underlines the fact remain "the eleventh consecutive quarter with a positive EBITDA" and a cash flow of $ 2.5 billion.
CEO John Chen also stressed that their strategy is reaching a turning point. Their financial base is solid and orientation to software is gaining momentum. In the second quarter doubled their software revenue from year to year and it is the highest gross margin in the history of the company.
For the full year, BlackBerry now expects adjusted value equivalent to a draw or a loss of 5 cents per share, while analysts expect a red data of 16 cents. The company also said the financial director James Yersh has left the group for personal reasons and will be replaced by Steven Capelli. BlackBerry also suspend the internal development of hardware, reducing capital requirements and even improve ROI. For the quarter, adjusted gross margin was 62 percent.