John Butler explained, in a recent discussion on Bloomberg Television, what people should look for in the first quarter results of BlackBerry Ltd (NASDAQ:BBRY).
According to the Bloomberg analyst, people tend to put less weight in quarterly results for companies like BlackBerry Ltd (NASDAQ:BBRY) than they do on long term goals. He noted that the story of the once-mighty Canadian communications company is now a story of a turnaround being led by “a great new CEO” in the person of John Chen.
Butler said that people interested in BlackBerry Ltd (NASDAQ:BBRY) should look for hints as to where Chen will be leading the company as the firm reports its first quarter performance. BlackBerry Ltd will report its Q1 2015 results before the market opens on Thursday, June 19.
Another point which investors and those concerned about BlackBerry Ltd (NASDAQ:BBRY) should look at is the firm’s cash burn rate, Butler added. Furthermore, people should also look at what to expect from the company within the coming quarters. He noted that Chen needs to make good on some of the promises he has already made.
Meanwhile, during his discussion with Julie Hyman, Butler added that Chen is focusing not only on the hardware side of BlackBerry Ltd (NASDAQ:BBRY) but also on other products the firm has. He said that Chen has looked at the company he is now running and said that leaders before him have looked at the organization as more of a device company. In reality, the CEO said, the company has a big portfolio of assets, including Blackberry Messenger, Blackberry Enterprise Services and a substantial patent portfolio. Butler said that Chen is: “looking to monetize it all, and take the company more into services and software. And we saw that last quarter were services and software represented a bigger percentage of revenue than the handsets.”
In terms of how much the company is depleting its cash on hand, Butler said that the CEO has expressed that he wants the company to be cash-positive by the end of the year. The analyst said that this needs to be done.