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BlackBerry ‘very close to making money’ despite flat smartphone sales

BlackBerry has successfully plugged some of the holes in its listing ship by reporting a miniscule profit despite the fact that smartphone sales continue to drop like a stone.

Related: Past its sell-by date: BlackBerry’s rotten 2013

The Canadian-headquartered company reported a net profit of $23 million [£13.5 million] for the period, an improvement on the $84 million [£49.3 million] loss from the same period during the 2014 fiscal year.

Its revenues continued to show a steep decline and were down 69 per cent to $966 million [£567 million] from the $3.1 billion [£1.8 million] that they reached during Q1 2014 and much of this was attributed to its poor smartphone sales to consumers.

BlackBerry admitted that it sold just 2.6 million smartphones to end users, which was a drop of over 50 per cent on the 6.8 million it shipped in the same period last year and is down on the 3.4 million devices sold last quarter, illustrating clearly that it is moving away from devices.

"We are getting very close to making money or at least break even on hardware. Not quite there yet, but close," CEO John Chen said on a conference call with analysts.

It didn’t offer detailed sales information on how many BB7 and BB10 handsets it sold to further suggest that uptake of the new OS among consumers and businesses is failing to get anywhere near expectations.

Chen did confirm that a new keyboard-based smartphone called the BlackBerry Passport will be launched in London in September and following that will be the previously announced Classic that will see the light of day in November.

BlackBerry’s results come a day after it confirmed it is adding the Amazon Appstore to its smartphones in order to gives BlackBerry smartphone owners a wider choice when it comes to apps thus addressing the litany of criticisms over its app selection.

Related: BlackBerry debuts its protected messaging service for enterprise

Under Chen’s leadership the firm has been successfully capitalising on its enterprise credentials and if it can marry this up with breaking even in the device stakes then it’ll feel like a job well done.