Blackberry continues to recover

Blackberry has started an aggressive restructuring process and has already cut a number of its top-tier management, with more to come.

One thing that was clear to all last year was that Blackberry could not continue to operate the same way it had previously and hope to be around for the long term. New chief executive officer John Chen has wasted no time in turning things around since taking the reins in November, as he has aggressively cut the higher management of the company. He has also overseen further asset-stripping with the sale of numerous Canadian properties.

Despite taking over when things were looking particularly bleak, investors have been willing to offer Mr Chen a certain amount of support. This is reflected in the share price which has risen from $5.44 at its December lows to the current price of $9.37. The share price's ability to remain above $9 would go a long way to giving traders the confidence that things were looking up; however, any close below this level would no doubt raise all the old questions again.

Blackberry will be releasing its fourth-quarter figures on Friday 28 March. In order to maintain these levels, markets will want to see that management has a stronger hold on both its budget and running costs. With funds likely to come from both tax refunds and asset sales, there could be enough time to complete the transformation. The fourth-quarter earnings per share result is expected to come in down to 0.563. 

Blackberry chart

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