BlackBerry lays out security strategy as turnaround takes shape

By Euan Rocha
NEW YORK, July 23 (Reuters) - BlackBerry Ltd BB.TO on
Thursday showcased a suite of security products that safeguard
everything from medical devices to Hollywood movie scripts,
though its CEO acknowledged that his effort to transform the
company remains a work in progress.
The Waterloo, Ontario-based company, whose smartphone market
share has dwindled, is attempting to morph into a more
software-focused entity.
"I'm pretty satisfied with the progress on the turnaround so
far," BlackBerry's Chief Executive John Chen said in an
interview just before an event in New York. "I laid out the $500
million software revenue target and I'm still comfortable with
that commitment for this fiscal year, it looks good."
He indicated however that the full turnaround he has been
promising could take longer than initially promised. Going by
his initial timetable, BlackBerry would now be about six months
away from seeing real traction from its overhaul. But Chen said
he now sees it taking about 12 to 18 months for investors to
reap rewards.
Analysts have been skeptical about the company's ability to
steadily and sustainably grow software revenue, even as revenues
from its smartphone unit and legacy system access fees decline.
"We're patiently building the product pipeline and the sales
channel," he said. "There is still a lot of work to do, I'd love
for everything to move faster, but I caution people to be a bit
patient because we can't rebound in a very short period of time,
no company can. We are doing all the right things for the long
term and the company is definitely out of financial trouble."
Despite Chen's success in shoring up BlackBerry's balance
sheet, and halting its cash bleed, its shares are still trading
at levels they were at 15 months ago, as investors look for
proof that it can get back on a growth trajectory.
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The company, which has acquired a string of niche
software-focused companies in the last 18 months, is now set on
building out a bigger sales team, while also tapping the sales
staff of telecom carriers and other partners to market its array
of security-focused products. ID:nL1N10203P ID:nL1N0XI0VQ
"The company was not really set-up as a software delivery
company, and it's not a trivial thing to get there," said
BlackBerry's Chief Operating Officer Marty Beard, adding that
measures taken in the last year have improved BlackBerry's
ability to identify and target potential clients.
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