Tag: mobile devices

That said, the company is still in critical care as it continues to battle to break even in its cash flow.

Investors have turned their eyes back on BlackBerry Ltd., once more, as the company’s strategies for cutting costs and preserving funds have led it to actually report a solid balance sheet in its fourth quarter earnings, which were released in recent news.

This will help to give the company the time that it needs to be able to attempt to turn its situation around.

BlackBerry brought itself about as close to death as a company can. However, now that it has broken through the other side of that experience, it is now working on the “specifics of charting a course to promised cash flow break-even by the fiscal first quarter.” This technology news is according to RBC Capital Markets analyst, Mark Sue.

Sue pointed out that liquidity is no longer one of BlackBerry’s largest risks within the near future.

He pointed out that the reason that liquidity isn’t among the struggles that the company will face in the near future is because of the tax refunds that it will receive, this quarter, which are expected to total approximately $500 million (U.S.). Moreover, it will receive an additional $300 to $400 million in tax refunds due to its recent sales in real estate. The result will be an additional $2.2 billion in net cash.

Sue’s belief is that if it is possible for the transition between the mobile devices manufacturer and Foxconn Technology Group’s production to increase the blended gross margins of the company could make it into the mid to high thirties, then it should also be possible for the cash flow of that handset maker to reach the break even point, which is an estimated $600 million for its standard operations.

The RBC Capital Markets analyst explained that “Should service revenue attrition continue or if Foxconn smartphone demand doesn’t improve, BlackBerry will need to cut more open.” He underscored the importance of the enterprise business stability at the company, which would represent an enterprise subscribership of an estimated 15 to 20 million, which would mean between five and seven million shipments of handsets each year, on top of service revenues of $1.6 billion.

Security is beginning to attract more attention, but threats inspire little action

As mobile commerce becomes more prolific, security is becoming a much more serious issue. Hackers have begun to focus on the mobile field more diligently because of the lack of security solutions that exist therein. Malicious groups have turned much of their attention to the commerce space because of the trafficking of financial information. Due to lackluster security, many consumers are finding themselves exposed to the risk of having their financial information exploited by malicious parties.

Malicious devices are becoming more common

The number of malicious devices in the physical world is growing at a rapid pace. These devices include those that are designed to mimic or exploit cash registers, credit card readers, and other such hardware. Even gas pumps are being equipped with devices that are meant to steal information from credit cards. These devices are also becoming more mobile-centric as a growing number of people begin to pay for products and services with their smartphones rather than with their credit cards. While physical devices are quickly becoming a problematic issue, malware is being considered much more dangerous.

Malware is growing at a rapid pace

According to security firm MacAfee, malware targeting mobile devices is becoming more common at an alarming rate. The firm notes that the presence of malware targeting the Android platform specifically has tripled between 2012 and 2013, with an estimated 3.7 million malware applications having been identified at this time. Notably, much of this malware goes undeterred as it attacks consumers and retailers alike. This is largely due to the lack of focus that both people and businesses have when it comes to matters of mobile security.

Hackers are winning the fight on the security front

Hackers may be winning the security battle. Because retailers, and other types of businesses, are still somewhat new to the mobile field, they are not necessarily attuned to the security issues that exist within the mobile commerce space. As these businesses continue to embrace new security solutions, they are finding that hackers have already developed malware that can bypass these solutions.