WATERLOO, Ontario - BlackBerry (NYSE:BB) Limited (NYSE: BB; TSX: BB) today announced efforts to enhance profitability and cash flow, targeting $100 million in annualized net profit improvements. This goal is in addition to previously disclosed cost savings of $50 million and involves cost reductions and margin expansion initiatives. The company has identified measures to achieve approximately $55 million of the $100 million target within the current quarter.
The company expects sequential improvements in operating cash flow in the current quarter and anticipates being operating cash flow positive by the fourth quarter of fiscal year 2025. BlackBerry has also made significant progress in establishing its IoT and Cybersecurity divisions as standalone entities, a move that includes the formation of leadership teams and the engagement of external consultants.
In terms of financial restructuring, BlackBerry recently raised $200 million through a convertible debenture offering, which allowed the company to cut its debt by 45% compared to November 2023. This step is expected to provide long-term liquidity and stability.
BlackBerry reiterated its revenue outlook for the current quarter, projecting total company revenues of $150 - $159 million, with Cybersecurity Annual Recurring Revenue (ARR) expected to stabilize sequentially.
The company's CEO, John J. Giamatteo, acknowledged the challenging decisions involved in the restructuring efforts and expressed confidence in BlackBerry's strategic direction and financial position.
BlackBerry's approach to cost reduction includes further headcount reductions within the Cybersecurity business expected to save $27 million annually and non-headcount savings of $8 million. Additionally, the company is reducing its global office footprint, exiting 6 locations to save about $7 million annually.
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