Blackberry's losses are expected to continue until the end of 2016, when it can break even, an analyst with Canaccord Genuity said on Monday.
According to CNET, analyst Michael Walkley said that the Canadian company's recent moves to cut costs would yield results only by the end of 2016.
Blackberry announced $423 million in losses at the end of last quarter. In the last fiscal year, revenue dipped by 64 percent, according to CNET.
Ubergizmo recounted Blackberry's recent sale of its real estate and the other downsizing moves it made under its current CEO John Chen.
"During the earnings call, BlackBerry CEO John Chen said that he is confident the company will reach a breakeven point by fiscal 2015," Ubergizmo said.
In a bid to arrest losses, the company announced a deal with Foxconn to manufacture Blackberry powered phones. Blackberry Z3, announced at this year's Mobile World Congress, is the first smartphone produced after the deal. Ubergizmo said that the Z3 would also be available in major markets. But the deal's short term benefits have not convinced Walkley, who said Blackberry will continue to struggle, the partnership notwithstanding.
"With respect to BlackBerry's hardware business, we struggle to assign any value to this segment given our belief that despite the recent Foxconn partnership, it will remain difficult for BlackBerry to maintain a profitable hardware business as a sub-scale smartphone supplier versus larger global OEMs Apple and Samsung and a very large group of price-aggressive Chinese Android OEMs," said Walkley in an interview with CNET.
According to Street Insider, Walkley said, "While we believe BlackBerry's balance sheet and $2.7B in gross cash buy time for CEO John Chen to implement his new strategies, we believe the shares reflect a more stable company and maintain our hold rating."
