BlackBerry stock climbs on news of Department of Defense contract

By on January 22, 2014, 9:30 AM
blackberry, department of defense, stock, contract, pentagon

Just when it seems as though BlackBerry is about to flatline, the struggling handset maker shows signs of life. The Canadian company recently managed to secure a contract with the US Department of Defense that will see 80,000 smartphones put into commission in the near future according to a statement on the matter from the Defense Information Systems Agency.

BlackBerry is one of the few companies whose devices have met the high-level security demands of various government agencies but they aren’t alone in their efforts. In addition to the BlackBerry handsets, the agency said they support 1,800 unclassified mobile devices which include the iPhone and iPad from Apple as well as several Samsung and Motorola devices.

BlackBerry stock value was up more than nine percent on the news in after hours trading as US exchanges were closed on Monday in observance of Martin Luther King Jr. Day. Shares have rallied around 35 percent since the end of 2013 but are still down roughly the same percentage over the past 12 months.

In other BlackBerry news, the company also recently revealed plans to divest much of their Canadian real estate holdings. Specifically, they will sell more than three million square feet of commercial real estate. The company plans to remain headquartered in Waterloo, Ontario, according to CEO John Chen, but the initiative will provide additional resources to support their operations as the business continues to evolve.




User Comments: 4

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1 person liked this | Guest said:

Anyone that thinks Blackberry will ever go bankrupt doesn't know anything about mobile security. Show me one government tax service that utilizes Iphone/Android and I'll show you the tax records supposedly "secured" in that infrastructure. Real security is a royal pain in the a$$... which is what Blackberry excels at.

1 person liked this | Lionvibez said:

Good point!

Most of the people commenting about blackberry dying are ***** fan boys and consumers that just play games and browse facebook so can't really expect much from them.

Once you get into an office you see what the deal is. We don't even allow andriod phones in our work environment too insecure.

Guest said:

You need to read the DISA article more closely. The current program supports 80,000 Blackberries, but the list of new pilot devices don't include Blackberries. All BB purchase are on hold pending new device roll outs. Better check your sources better.

Guest said:

Spot on. The 80,000 BBs are those that have been around for years. All the testing is on non-BBs. The DoD is a bureaucracy, but they're not so ignorant to invest a huge amount of infrastructure to a brand that is on the verge of imploding. This pop in stock price was a manipulation of the original article. Somebody got rich, but it's not for the lie that is the headline.

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