BlackBerry Back On Track?: Tech Winners & Losers
NEW YORK ( TheStreet) –– BlackBerry
Reuters reported today that an internal memo circulated to all BlackBerry employees said the company had completed its restructuring process. The memo, sent Friday, was from CEO John Chen, who wrote, “We have completed the restructuring notification process, and the workforce reduction that began three years ago is now behind us.” Chen also said that BlackBerry would soon begin hiring in product development, sales, and customer service.
BlackBerry could not be reached for comment.
Chen is committed to turning around the troubled Canadian company, cutting costs, selling property, and building revenue from business services and the BBM messaging service. In July, for example, BlackBerry sold its research and development department in Germany to Volkswagen
Last week, Chen told Bloomberg Television that while BlackBerry had received no buyout offers, it would be profitable by March 2016, with an 80% chance of turning itself around independently.
GT Advanced Technologies
GT reported yesterday that in its second quarter, the company earned $58.0 million in revenues, down from $168.3 million a year earlier. This yielded a net loss of 16 cents per share, well below earnings of 19 cents per share a year earlier. Analysts polled by Thomson Reuters modeled a loss of 14 cents per share on revenues of $63.9 million.
GT’s full-year revenue guidance was also lower than expected: the company expects revenues between $600 million and $700 million, while it had previously forecast a range of $600 million to $800 million. This estimate was also short of analysts’ expected $667 million.
However, full-year earnings per share guidance was higher than expected. The company now expects earnings between 12 cents and 18 cents per share, up from both the previously forecast range of 2 cents to 18 cents and analysts’ expected 3 cents. This increase reflects “an expected change in mix and more favorable gross margins in the second half of the year,” according to the press release.
"Results during the second quarter were in line with our guidance," said CEO Tom Gutierrez. "We have continued to see strong interest in our suite of sapphire production tools.” He added, “We remain confident about the long-term potential of the sapphire materials business for GT.”
Gutierrez also said that GT, which supplies advanced sapphire materials to Apple
Several analysts issued reports in response to the results. Goldman Sachs analyst Brian Lee wrote last night that he was reiterating his “buy” rating and would reevaluate the price target after the call, noting that the reduced full-year revenue guidance was “was better than expected, in our view.”