BlackBerry Back On Track?: Tech Winners & Losers

NEW YORK (TheStreet) ––BlackBerry (BBRY) shares spiked 4.3% to $9.54 in response to a report that the company had completed its restructuring.

Reuters reported today that an internal memo circulated to all BlackBerry employees said the company had completed its restructuring process. The memo, sent Friday, was from CEO John Chen, who wrote, “We have completed the restructuring notification process, and the workforce reduction that began three years ago is now behind us.” Chen also said that BlackBerry would soon begin hiring in product development, sales, and customer service.

BlackBerry could not be reached for comment.

Chen is committed to turning around the troubled Canadian company, cutting costs, selling property, and building revenue from business services and the BBM messaging service. In July, for example, BlackBerry sold its research and development department in Germany to Volkswagen (VLKAY). In the past three years, the company has shrunk its workforce by roughly 60%.

Last week, Chen told Bloomberg Television that while BlackBerry had received no buyout offers, it would be profitable by March 2016, with an 80% chance of turning itself around independently.

GT Advanced Technologies (GTAT) shares jumped 7.1% to $15.13 despite a mixed earnings report.

GT reported yesterday that in its second quarter, the company earned $58.0 million in revenues, down from $168.3 million a year earlier. This yielded a net loss of 16 cents per share, well below earnings of 19 cents per share a year earlier. Analysts polled by Thomson Reuters modeled a loss of 14 cents per share on revenues of $63.9 million.

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