BlackBerry Ltd (BBRY)’s CEO, John Chen, Can Smile

BlackBerry Ltd (NASDAQ:BBRY)’s CEO, John Chen, is a man who has been quite busy if the second quarter results are anything to go by according to Bloomberg’s Adam Johnson. The company reported a lower than expected second quarter loss with improved smartphone sales although they still fell short of Apple Inc. (NASDAQ:AAPL)’s iPhones and Samsung’s Galaxies on the global platform.

It might have been a 9^th consecutive quarter of losses but that is not expected to be of a major concern to investors. This is because the company has been slowly reducing it’s losses from highs that nearly sunk it into bankruptcy in the past. A narrower than expected loss in the quarter has been attributed to cost-cutting measures, as well as the ongoing recovery of the smartphone business.

“The loss for last quarter smaller than what everyone else was looking for; 2 cents adjusted loss for the period. Analysts were looking for a loss of 16 cents and in fact, BlackBerry Ltd (NASDAQ:BBRY) continues to target break even in cash flow by the end of 2015 and gross margins 47.5%,” said Bloomberg’s Scarlet Fu.

BlackBerry Ltd (NASDAQ:BBRY) continues to register substantial improvements at the back of a turnaround strategy initiated by its inspirational CEO. A gross margin of 47.5% is close to that of Apple Inc. (NASDAQ:AAPL), a clear indication that the company could finally be picking up in terms of profitability.

Concerns only arise when BlackBerry Ltd (NASDAQ:BBRY) is compared to Apple Inc. (NASDAQ:AAPL) in terms of smartphone sales. During the second-quarter, the Canadian company sold 2.4 million smartphones a shadow of Apple Inc. (NASDAQ:AAPL)’s 10 million that were’ made in a matter of days with iPhone 6. Johnson believes that despite posting impressive results for the quarter, a lot still has to be’ done as the company has a strong financial backing that it can use to accelerate growth.

“This is a cash burn story; the company is not making money, it’s got several billion dollars. The question is who is benefiting the cash,” said Mr. Johnson.

Free Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.