Since 2016 BlackBerry ( NYSE:BB ) has shifted its focus away to software and services from manufacturing its legendary phones. BlackBerry is now quick to respond; if any of its business units unprofitable, it promptly sells them, like the recent sale of its Cylance, the cybersecurity business unit to Arctic Wolf Networks for $160 million on December 16, 2024.

And today, on December 19, 2024, BlackBerry posted its strong third quarter earnings report of fiscal year 2025, which ended on November 30, 2024. The company has its revenue of $162 million beating the analysts' estimation of $145 million only. Also, the market was surprised as consensus expected a loss of 1 cent but instead BlackBerry showed its earnings at positive 2 cents per share.

The main revenue contributors are IoT and Cybersecurity. The Internet of Things (IoT) revenue was $62 million, up 13% year-over-year, and cybersecurity revenue was $93 million, up 7%. As it sold its cybersecurity business, BlackBerry will lose $93 million contribution to its total revenue. This decision made because Cylance was not making money and had become a burden to BlackBerry's balance sheet.

So now BlackBerry can focus to more profitable business units and make itself a profitable company again.

BlackBerry is struggling with its operation through years and one thing that can be appreciated is the way they keep their debt never exceeding much higher than its cash.

As shown on the chart above, BlackBerry's financial is in downtrend but over the years it keeps its head not to be far under the water by not letting debts towering above its cash. By slashing its unprofitable business, we can expect better shape of BlackBerry someday.

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This article first appeared on GuruFocus .