BlackBerry (BBRY) Earnings: Can the Company Turn Things Around?

BlackBerry EarningsBlackBerry Limited (NASDAQ/BBRY) will be reporting its earnings tomorrow, June 23rd. With its tiny market share today, the company has been trying out new strategies to get back on its feet.

The company is not the brightest kid on the technology block, according to analysts. Analysts are expecting revenue of $684 million with an adjusted loss of $0.03 per share.

The company’s most recent performance has been better than expected, though. In the past four quarters, BlackBerry has beaten analysts’ earnings estimates. Moreover, the company has been cash flow positive this year.

According to data from the International Data Corporation, Android-running smartphones have been dominating shipments with a 78.0% market share in the first quarter of 2015. Devices running Apple Inc.’s (NASDAQ/AAPL) iOS platform came in second with an 18.3% share. BlackBerry OS is losing its popularity among cell phone users, capturing a dismal 0.3% of the market in the first quarter.

Switching to Android?

BlackBerry has realized that its mobile operating system is losing competitiveness in the cell phone game. Its dwindling market share has failed to attract big name apps on its mobile platform.

Just recently, several sources reported that the company was thinking of running an Android operating system on its upcoming smartphones. See “BlackBerry Plans to Run Android on Its New Smartphone.”

If BlackBerry goes ahead and adopts the Android system, it could take advantage of the amount of applications that are already available. However, after switching to Android, its faithful users may switch to other Android-powered smartphones.

Realizing it might be too late to change its stance in the cell phone game, BlackBerry has shifted its focus to software and device management. With the “BES 12” device management system unveiled last year, BlackBerry is getting competitive in the enterprise game. The system allows corporations and governments to manage devices on their internal networks. The devices don’t have to be from BlackBerry; BES12 works with Android, iOS, and the “Windows Phone” as well.

What to Look for in Tomorrow’s Report

Investors will be paying attention to BlackBerry’s revenue, which fell short of expectations last quarter. Earnings will also be a focus, with analysts expecting a net loss. The company’s cash position will give investors an idea of its financial strength and liquidity.

In particular, investors should look at device sales, which so far have declined dramatically since the company’s hay days. Investors should also look at the results in the company’s software and device management business. Progress in these areas will indicate the success in the company’s shift of focus.