BlackBerry posted a 31.8 percent fall in second-quarter revenue and it said it would end all internal hardware development, including its smartphones. The company is entering a joint venture with Indonesia-based BB Merah Putih to make and distribute BlackBerry-branded devices. BlackBerry’s device business, which it calls "Mobility Solutions," will focus on developing applications and an extra-secure version of Google’s Android operating system that it can license to other companies.

"Our new Mobility Solutions strategy is showing signs of momentum, including our first major device software licensing agreement with a telecom joint venture in Indonesia. Under this strategy, we are focusing on software development, including security and applications. The company plans to end all internal hardware development and will outsource that function to partners. This allows us to reduce capital requirements and enhance return on invested capital,"continued Chen.

The newly formed joint venture PT BB Merah Putih will license BlackBerry software and services for the production of handsets for the Indonesian market. BB Merah Putih will source, distribute and promote BlackBerry-branded devices that use BlackBerry’s Android software and applications.

BlackBerry’s Mobility Solutions unit manages the BlackBerry smartphone business and development of device software offerings that includes maximizing the BlackBerry 10 software features and making them accessible on other platforms, including Android.

The Waterloo, Ontario-based company reported a net loss of $372 million, on revenue of $334 million. A year ago, it reported a profit of $51 million, on revenue of $490 million.

BlackBerry's software revenue was $156 million, more than double what it was in the same period last year, but down sequentially from $166 million last quarter.