Surprisingly Strong Quarter: BlackBerry Shares Surge After Earning $23M

Direct Finance

smartphone-bbBlackBerry posted a better-than-expected profit of $23 million in the first quarter, a performance that has surprised many analysts.

Surprising performance

Shares of the troubled smartphone market have increased by more than 14%, helped by higher profit margins and cost-cutting measures.

“I hope you share in our small celebration of a successful quarter,” Chief Executive John Chen said during the company’s earnings call. “Right now, the main thing I’m focusing on is laying the groundwork for growth.”

BlackBerry has been trying hard to fight back after losing market share in the world of mobile devices.

Internet of Things

Under new boss Chen, the company has embarked on a turnaround plan intended at focusing more on its service department, while putting a renewed emphasis on its devices.

He took over as CEO last year, and has since then injected new life to the business.

Last month, BlackBerry launched its Project Ion that aims to develop more connected devices.