BlackBerry, which makes mobile devices and software, recently completed the acquisition of Secusmart, a German developer of voice and data encryption software for government entities and enterprises. That news, announced Friday, was overshadowed by mediocre earnings for the quarter that ended Nov. 29 where revenue totaled $793 million, missing analysts' expectations of $920 million.
The Secusmart deal, announced over the summer, is an integral part of BlackBerry's long-term revival plans. BlackBerry CEO John Chen said in a statement that the acquisition reflected his company's emphasis on mobile security technology for enterprises. He also brought up the need for such security at time when "breaches and data theft pose ever-growing costs and threats."
Analysts Timothy Arcuri and Bryan Prohm with investment bank Cowen and Co. issued a research report Friday on BlackBerry that pointed to software as possible way for the company to change its long-term fortunes.
BlackBerry devices had long been the go-to mobile gadgets favored by businesses and government agencies that need robust security for transmitting information wirelessly. Over time, though, such users turned more and more to consumer-oriented smartphones, largely the province of Apple's (AAPL) iPhone, Google's (GOOGL) Android-based phones and Microsoft (MSFT) , trying to compete with Windows Phone.
BlackBerry does seem to want to compete on hardware as well. Last week it released the BlackBerry Classic smartphone, which includes the perennial physical keyboard the company is known for -- despite most rivals pushing sleeker phones with virtual keyboards.
But the hardware game can be brutal. BlackBerry's first foray in tablets, the PlayBook, was discontinued this year with no successor device in sight. BlackBerry said it doesn't comment on the road map for its potential products.