Dive Brief:

• Software and cybersecurity service provider BlackBerry LTD appointed company veteran Tim Foote to the role of CFO effective Monday in one of a series of shifts to its finance leadership team, according to a press release. Foote replaced CFO Steve Rai, who is leaving to pursue opportunities outside of the company, BlackBerry said in a Monday securities filing.
• The software provider also appointed its VP and controller Jay Chai to the newly created role of SVP and chief accounting officer, also effective as of Monday, with Chai to report to Foote, according to the company filing with the Securities and Exchange Commission. Meanwhile, fellow BlackBerry veteran Fraser Deziel will step into the corporate controller seat, the company said.
• Foote’s appointment comes as the software provider looks to execute on its decision to establish two distinct company divisions, comprising cybersecurity and its Internet of Things business, respectively. BlackBerry unveiled the strategy last year following the conclusion of its “Project Imperium” undertaking — a review of its operations and business portfolio began by its Board of Directors in May 2023.  

Dive Insight:

Foote, 44, joined the Waterloo, Ontario-based company in 2015 with BlackBerry’s acquisition of Good Technology, a wireless technology provider, according to the Monday press release. A Chartered Public Accountant, he has held various roles throughout his tenure at the company, including as its head of investor relations, according to his LinkedIn profile. He most recently served as CFO for BlackBerry’s cybersecurity division, taking that position in February.

As company CFO, Foote will receive an annual base salary of $400,000, according to his employment agreement. He will also be eligible to receive an annual bonus with a target of 75% of his base salary, and will receive a one-time grant of time-based restricted units with a grant date value of $400,000, according to the agreement.

The finance leadership shifts are the latest in a series of high-profile executive changes and appointments BlackBerry has made in recent years. Last October, it announced CEO John Chen would step down after 10 years in the company’s top seat, a decision in line with Chen’s contract and which “follows the conclusion of the Project Imperium evaluation,” the company said in an announcement at the time.

Board member Richard Lynch stepped in as interim CEO and executive chair before the company appointed McAfee and Solera veteran John Giamatteo as its CEO in December 2023, with Lynch continuing as board chair.

Foote’s appointment follows after BlackBerry noted it had made “significant progress” with the separation of its cybersecurity and IoT divisions in its June earnings release for its Q1 of fiscal 2025.

Both divisions exceeded revenue expectations for the quarter ended May 31, 2024, according to the company’s earnings release, with cybersecurity seeing $85 million in revenue — below the $93 million seen in the previous quarter. The IoT division, meanwhile, saw revenue jump 18% from the previous quarter to $53 million.

“The Company is making significant progress towards operational independence for our IoT and Cybersecurity businesses, as well as towards profitability,” CEO Giamatteo said in a statement included in the earnings release. BlackBerry’s adjusted EBITDA loss of $7 million “meaningfully beat expectations,” he said during the company’s latest earnings call, while its free cash use of $16 million represents a $1 million sequential improvement from Q4 2024, he said.  

However, the company reported a net loss of $42 million for its most recent quarter, leaving its executive team focused both on driving growth as well as reducing costs.

During its past quarter, BlackBerry “took further actions that will, in the fullness of time, drive incremental annual cost savings of approximately $20 million,” Giamatteo said during the company’s latest earnings call, according to a transcript by Seeking Alpha. These actions included layoffs as well as reductions to its facilities, he said.

The $20 million comes after BlackBerry announced its intent to target $100 million in annualized net profit improvements in February, which will be achieved through a combination of cost cutting and margin expansion, the company said. The $100 million target came after the company undertook $50 million in annualized cost savings actions in the prior quarter.

Overall, BlackBerry has reached $125 million in cost saving actions to date, Giamatteo said during its June earnings call.

“We feel really good about it,” Giamatteo said of the company’s cost reduction efforts in response to an analyst question. “I think we've got a comprehensive program around it. We've obviously executed on the $125 million. We're taking further actions to simplify some of the more complex things.”

BlackBerry did not immediately respond to requests for comment regarding its financial leadership shifts.