BlackBerry Ltd. (BBRY) Q2, 2014: Reports 49% Loss, Shipments Down To 3.7 Million

Must Read

Elon Musk Overtakes Bill Gates And Becomes the 2nd Richest Person in the World

It's been a good week for Elon Musk and his electrical vehicle business Tesla. Earlier this week,...

Google Pay Fee On Instant Transfer: An Indication Of Google’s Aggressive Monetisation Strategy?

Google has decided to levy fee on instant payment, starting from the US market.

Paytm Lawsuit Impact: TRAI Slaps Fine On Jio, Airtel, BSNL And Other Telcom Operators

The emergence of e-wallets brought along with itself a big uprise in notorious phishing scammers who prey...

The second-quarter fiscal 2014 earnings report of BlackBerry Ltd. (NASDAQ:BBRY) is out and as expected, the results were disappointing. The company recorded a loss of 49% from previous quarter’s $3.1 billion to $1.6 billion in its second quarter. BlackBerry’s concerns were visible when it sacked 4,500 employees in an effort to reduce expenditure by 50% by 2015. Among the reasons for BlackBerry’s loss was the failure of BlackBerry 10 OS to create ripples in the smartphone industry.

BlackBerry

In its first quarter of fiscal 2014, BlackBerry had shipped a mere 6.8 million smartphones, and in the second quarter, the number of smartphones shipped dropped down to 3.7 million. The company noted that most of the handsets shipped do not even run the new BlackBerry 10 operating system which was crucial for the company’s comeback into the smartphone market. The company hopes to recognize hardware revenue on the devices shipped in its second quarter. Most of the units recognized were BlackBerry 7 devices, partly because BlackBerry 10 devices will not be recognized until the devices are sold through to end customers. The company’s GAAP loss from continuing operation was $965 million including primarily non-cash, pre-tax charge against inventory and supply commitments in the second quarter of approximately $934 million related to poor sales of BlackBerry Z10 devices; This was the result of the more intense competition the company is experiencing in its hardware business.

The company has abandoned plans for a few future devices and has trimmed its smartphone portfolio from six to four. It took another hit on Wednesday when T-Mobile said that it’ll no longer keep BlackBerry devices in its stores.

Advertisements

CEO Thorsten Heins remains hopeful in these dark times:

“We understand how some of the activities we are going through create uncertainty, but we remain a financially strong company with $2.6 billion in cash and no debt. We are focused on our targeted markets, and are committed to completing our transition quickly in order to establish a more focused and efficient company.”: CEO Thorsten Heins said in a statement.

That will likely be all we’ll hear from BlackBerry as it said earlier this week that it would cancel the earnings call it usually holds with Wall Street Journal analysts. Earlier this week BlackBerry signed a letter of intent to sell its business for $4.7 billion, or $9 a share to a consortium led by Fairfax Financial Holdings, which currently owns about 10% of the company.

However, the agreement is not binding and may not be one until November 4. In the Meantime, BlackBerry is free to entertain other offers; of course doing so would also mean paying Fairfax a $157 million payout. The next month is likely to be an eventful one for the one-time smartphone pioneer.

Source: All Things D

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Advertisements

Latest News

Microsoft 365: Corporate Privacy Invader Masked As A Collaboration Tool?

Microsoft 365, a line of online subscription services offered by Microsoft to better collaborate in your workspace,...

End Of Free Ride For Ola And Uber: GOI Sets New Rules For Cab Aggregators!

For long Ola and Uber have been enjoying the free ride on charging surge price from customers and paying low commission to...

Hundreds Of Email Accounts Of C-Level Executives Are Up For Sale, And It’s Scary!

The email accounts of numerous C-level executives around the world have been compromised and a threat actor is now selling their credentials...

Backed By First-Time Shoppers, Flipkart And Amazon Dominated Festive Online Sales in India

It seems like Flipkart and Amazon squeezed the most out of the month-long festive season in India as they have minted close...

Amazon Gets Slapped With Penalty As GOI Prepares To Tighten The Noose On Ecommerce Players!

In a recent move, the Indian Government slapped Amazon on its wrist for not mentioning the country of origin detail for products...

Facebook’s Past Comes Back To Bite As South Korea Fines Them For 2018 Scandal

The social media behemoth Facebook Inc. (NASDAQ:FB) has once again proved they are the true arch-nemesis of modern-day user-privacy!

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This