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BlackBerry reports $965 million loss
MARKETING NEWS
BusinessTech.co.za - Sep 30th, 13:19
On Friday, struggling mobile handset maker BlackBerry reported a loss of $965 million, or $1.84 per share diluted, for the three months ended August 2013, compared with a prior loss of $235 million.
Revenue for the second quarter of fiscal 2014 was approximately $1.6 billion, down 49% from $3.1 billion in the previous quarter and down 45% from $2.9 billion in the same quarter of fiscal 2013.
“We are very disappointed with our operational and financial results this quarter and have announced a series of major changes to address the competitive hardware environment and our cost structure,” said Thorsten Heins, president and CEO of BlackBerry.
The revenue breakdown for the quarter was approximately 49% for hardware, 46% for service and 5% for software and other revenue.
During the second quarter the company recognized hardware revenue on approximately 3.7 million BlackBerry smartphones. By contrast, Apple recently reported the sale of 9 million of its new iPhone 5C and 5S models in the first three days post launch.
“Most of the units recognized are BlackBerry 7 devices, in part because certain BlackBerry 10 devices that were shipped in the second quarter of fiscal 2014 will not be recognised until those devices are sold through to end customers,” the Canadian firm said.
During the quarter, approximately 5.9 million BlackBerry smartphones were sold through to end customers.
The company sees increasing penetration of BlackBerry Enterprise Service 10 (BES 10) with more than 25,000 commercial and test servers installed to date, up from 19,000 in July 2013.
BlackBerry is set to go private in a $4.7 billion deal, following a $9 per share tentative offer from a consortium earlier this week, led by property and casualty insurer Fairfax Financial Holdings.
“While our company goes through the necessary changes to create the best business model for our hardware business, we continue to see confidence from our customers through the increasing penetration of BES 10, where we now have more than 25,000 commercial and test servers installed to date, up from 19,000 in July 2013,” Heins said.
“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,” the CEO said.2013 Copyright, BusinessTech. All right reserved
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