BlackBerry on slow road to recovery as Q2 losses narrow

The mobile giant is well on the road to recovery, thanks to new leadership, but there's still a long way to go yet.

Image: CNET/CBS Interactive

BlackBerry is on the road to recovery, albeit slowly; almost a year after chief executive John Chen took over at the company's helm.

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On Friday, the smartphone maker reported a net loss of $207 million, or 2 cents a share. Its revenue came in at $916 million, down by more than 40 percent year-over-year.

Wall Street was expecting a loss of 16 cents a share on revenue of $949.6 million. It was a hit on earnings but a miss on revenue.

Chen said in prepared remarks that the he was "confident" the company will reach break-even cash flow by the end of the fiscal year.

"Our workforce restructuring is now complete, and we are focusing on revenue growth with judicious investments to further our leadership position in enterprise mobility and security, driving us towards non-GAAP profitability during [fiscal 2016]," he added.

In the year-ago quarter, BlackBerry suffered a near-$1 billion loss , thanks to its flagship Z10 smartphone flopping. The company had to swallow a massive charge, and cut thousands of staff to counter the quarter.

BlackBerry recently announced its new Passport phone, a square-device with a physical keyboard, which the company hopes appeals to enterprise customers.

ZDNet's Larry Dignan noted that although the audience is likely to be limited, it will nonetheless attract government customers still after the end-to-end email and messaging security.

More than 200,000 of the new devices have been ordered since launch, Chen said on the follow-up conference call.

BlackBerry ($BBRY), which closed on Thursday down more than 6.7 percent, was down in pre-market trading by 0.2 percent.