Samsung Buys Enterprise Software Company Despite 30% Profit Plunge
Fail fast and move forward, the saying goes.
That’s what electronics giant Samsung is trying to do after suffering an astoundingly bad Q3 this year, where its new generation of Galaxy Note 7 smartphones was recalled due to exploding batteries. The problem became so frequent and severe, the FAA banned Note7 devices from being inside plane cabins during flights.
That resulted in a 30-percent drop in revenue year-over-year during the same period.
“For the IT & Mobile Communications Division, earnings declined due to the Galaxy Note7 discontinuation,” the company said in its earnings statement. Of course the company won’t be abandoning its mobile component business, just shifting focus for next year. It even fell on its sword, admitting some brand trust was in order.
“Regarding the mobile business, the company will focus on expanding sales of new flagship products with differentiated design and innovative features, as well as regaining consumers’ confidence,” the statement continued.
On the same day the company released its disastrous earnings statement due to hardware issues, it announced a new focus on software with the acquisition Tachyon, the Virginia-based enterprise mobile device configuration and development software subsidiary of Kaprica Security.
In short, the acquisition “will completely automate the setup process for Samsung’s enterprise Android devices, leading to faster, more secure and cost-effective, accurate and complete rollouts,” Samsung said in a press release.
The automated setup will expedite configuration of thousands of enterprise devices in a matter of minutes, according to the release.
Tachyon and Samsung were partners prior to the acquisition, with the smaller company’s users primarily based in the public sector, including Federal Law Enforcement and the Department of Defense.
Terms of the deal were not disclosed.