Research In Motion Ltd (BBRY) CEO to Wall Street: You’re Doing It Wrong

Getting back to the aforementioned three-phase plan, then, the first phase (according to Heins) has already been completed and involved launching the Research In Motion Ltd (NASDAQ:BBRY) 10 operating system and restructuring the business and workforce Remember, that latter restructuring included 5,000 layoffs last fiscal year in an effort to reduce costs.

The second phase, which Heins claims the company is “just starting now,” involves a plan to “build and invest in the future.” More specifically, that entails growing the company’s enterprise services, BlackBerry Messenger platform, and launching additional BB10-driven devices. What’s more, without clarifying further, Heins says this stage will also involve a focused pursuit of “vertical specific opportunities.”

Finally, the third phase includes driving profits from the results of the first two phases, which will be a tall order considering the intense competition Research In Motion Ltd (NASDAQ:BBRY) finds itself facing.

Foolish takeaway
For the time being, however, remember BlackBerry did manage to generate cash from operations of $630 million last quarter, and it still held cash and investments of $3.1 billion at the end of June.

That said, Research In Motion Ltd (NASDAQ:BBRY) also forecast continued operating losses during its fiscal second quarter, which is why Heins was left pleading with investors at the meeting to maintain their positive long-term outlook for the business.

In the end, it’s unsettling to me that no one — not even Research In Motion Ltd (NASDAQ:BBRY)’s own management team — knows exactly how to gauge the long-term effectiveness of BlackBerry’s turnaround efforts. Until BlackBerry can manage to provide some level of tangible, predictable progress, that’s why the stock remains too risky a bet for my taste.

The article BlackBerry CEO to Wall Street: You’re Doing It Wrong originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington owns shares of Apple. The Motley Fool recommends and owns shares of Apple.

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