Dive Brief:
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BlackBerry Limited reported a software and services adjusted revenue increase of 26% year-over-year — to a record adjusted revenue of $196 million — for the second quarter of fiscal year 2018, according to a company announcement. The company's total revenue came to $249 million.
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The progress in software and services and a record 76% gross margin demonstrate BlackBerry's full transition to a software company, said John Chen, CEO and executive chairman, in the announcement.
- After Chen became CEO in 2013, he helped transition Blackberry from a handset maker to a software company — a feat many did not believe possible upon his assumption of the office, reports TechCrunch.
Dive Insight:
BlackBerry has undergone a different kind of digital transformation over the last few years. The company officially retired its mobile phone in 2016, doubling down on development, apps and mobile security. With the focus on software, many of the company's engineers and tech workers have migrated elsewhere.
The decline of BlackBerry ran alongside the ascent of the iPhone, but everyone likes a comeback and Chen's four years at the helm may have done just that. The company has exceeded expectations and is expected to continue at market pace, possibly above.
The idea that a mobile company could successfully reinvent itself within four years into a software company is no small feat and speaks volumes on the importance of flexibility and widespread opportunities in the software market. Consistent leadership commitment to a hard to attain end product — like that which enabled Google Glass' recent redefinition and resurgence — is at the core of a modern transformative IT strategy.
