After loss of $372 million BlackBerry to stop making phones
Staff Writer |
BlackBerry announced an agreement with newly formed joint venture PT BB Merah Putih to license BlackBerry software and services for the production of handsets for the Indonesian market.
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John Chen, the CEO chairman and chief executive, said: "We are focusing on software development, including security and applications.
"The company plans to end all internal hardware development and will outsource that function to partners. This allows us to reduce capital requirements and enhance return on invested capital."
This partnership accelerates BlackBerry’s overall focus on driving software growth, specifically developing and licensing device software offerings, including security solutions and applications, through its Mobility Solutions business unit.
BB Merah Putih will source, distribute and promote BlackBerry-branded devices that use BlackBerry’s secure Android software and applications.
BB Merah Putih will have full access to the BlackBerry experience, which includes the trusted BlackBerry for Android secure software, for production of new devices in Indonesia.
The joint venture was created in support of the Indonesian Government’s efforts to promote the development, manufacturing and creation of locally sourced products, while also increasing the number of value-added LTE smartphones available and sold in the country.
It is being led by PT Tiphone Mobile Indonesia Tbk, a leading telecommunication company with the largest distribution network in Indonesia. PT Tiphone is an affiliate of PT Telekomunikasi Indonesia Tbk, which is the largest carrier in Indonesia. The JV and its affiliates account for nearly half of the total Indonesian mobile market.
BlackBerry Limited reported finacial results for the second quarter ended August 31, 2016.
Non-GAAP total revenue was $352 million; GAAP revenue was $334 million. Non-GAAP software and services revenue was $156 million; GAAP software and services revenue was $138 million.
Non-GAAP operating income was $16 million, and non-GAAP earnings per share was break even for the second quarter. GAAP net loss for the quarter was $372 million, or $0.71 per basic share. ■