BlackBerry Turnaround Plan Is Working: CEO

Thursday, 28 Mar 2013 | 3:39 PM ET
BlackBerry CEO on Earnings Beat
Thursday, 28 Mar 2013 | 2:05 PM ET
Blackberry had a Q4 earnings surprise. Thorsten Heins, CEO & president of Blackberry, weighs in.

BlackBerry CEO Thorsten Heins shrugged off a declining subscriber base in an interview on CNBC's "Street Signs" Thursday, and said that BlackBerry is actually poised for a profitable future.

"The decline in the subscriber number is really associated with the form of the BlackBerry OS system, we expect this to gradually continue," Heins said. "What we are really working on and looking towards is new services based on BlackBerry 10 and then we will be looking at the monetary value of those services rather than the pure subscriber numbers."

BlackBerry, which competes with Apple and Samsung, will have stronger revenue per subscription with BlackBerry 10, Heins said.

"If you really want to understand what that business model looks like, get a look at the revenue per sub (subscriber) based on applications and services," he added.

The company reported better than expected fourth-quarter earnings Thursday. Excluding items, the company made a profit of 22 cents per share.

(Read More: BlackBerry Beats Wall Street, Stock Whipsawed)

Analysts has expected a quarterly loss of 29 cents a share on $2.85 billion in revenue, according to Thomson Reuters data.

Heins said that this quarter's earnings are proof that the company's turnaround plan is working.

"The fair assessment is number are numbers. The fair assessment is that we, by now, have within 12 months managed this company to a turnaround point," Heins said. "Based on the volumes that you see, we're actually capable as a company to deliver profits to the shareholders."

However, the company's base of users shrunk to 76 million, from 79 million and revenue fell to $2.68 billion from $4.19 billion a year ago. Handset shipments also declined 46 percent year over year, to six million.

The handset maker has high hopes that its BlackBerry 10, which launched in the U.S. earlier this week, will be a game changer for the company. And while the device had successful launch in Europe and Canada, its U.S. debut was weak, at best, according to analysts.

(Read More: Investors Abandon Blackberry After 'Disappointing' Launch )

Heins, though, said that BlackBerry 10Z units sales are solid.

"Right now, what we see is, whatever we ship into the market sells pretty quickly," he said.

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