For Canadian technology company BlackBerry Ltd. (TSX:BB)(NYSE:BB), completely changing strategic direction has required patience from long-term investors, many of whom have apparently run through their allotment in short order.
Revenues have dwindled to a fraction of the company's historic highs; this most recent quarter, BlackBerry posted revenues of $226 million U.S. - flat year over year, but impressive considering the company has completely moved away from hardware, officially closing the book on handheld revenue in the most recent quarter.
Instead of selling physical phones, BlackBerry's CEO John Chen has positioned the company as a security conduit for large organizations and firms looking for secure connections for IoT devices - specifically, autonomous vehicles. BlackBerry's QNX platform has competed against many other platforms for high profile contracts and has largely come out in front of competitors as the "secure" solution, a label Chen and most others at BlackBerry hope will continue indefinitely.
The company's bottom line numbers were also impressive, with BlackBerry posting a $59-million U.S. profit - a better than 25% profit margin.
Should BlackBerry continue to report out excellent bottom line growth, I believe much of the revenue growth story will go by the wayside over the long run, making me ultimately a bull on shares of BlackBerry in the Canadian technology space.
Finding good technology companies at relatively inexpensive valuations is an extremely difficult task, at any point in time. Doing so in a bloated bull market, even harder, making BlackBerry a very intriguing option for value investors seeking tech exposure.
Invest wisely, my friends.
