It seems that BlackBerry's cost-cutting efforts starting to pay off, as the copmpany on Friday reported a quarterly profit, although its revenue fell. The Canadian company reported net profit of $28 million, or 5 cents a share, in the fourth quarter ended Feb. 28. That compared with a year-earlier loss of $148 million, or 28 cents a share.

Quarterly revenue, however, slid to $660 million from $793 million. The revenue breakdown for the quarter was approximately 42% for hardware, 47% for services and 10% for software. During the fourth quarter, the company recognized hardware revenue on approximately 1.3 million BlackBerry smartphones. Approximately 1.6 million BlackBerry smartphones were sold through to end customers, with an ASP of $211 compared to $180 in the previous quarter.

"Our focus this past year was on getting our financial house in order while creating a multi-year growth strategy and investing in our product portfolio. We now have a very good handle on our margins, and our product roadmaps have been well received," said Executive Chairman and CEO John Chen. "The second half of our
turnaround focuses on stabilization of revenue with sustainable profitability and cash generation."

The company also announced a deal that lets China Mobile’s Hong Kong unit simplify the way it bills customers using BlackBerry’s device management software. The company announced similar agreements with other carriers, including Vodafone Group Plc’s Indian unit and Telekom Slovenia, this month.