The end cannot be far away for BlackBerry.
The company this afternoon halted trading of it’s stock and announced the slashing of 4,500 jobs and that it will report a net operating loss of nearly $1 billion in fiscal Q2. The bad news doesn’t end there:
- BlackBerry had $1.6 billion in sales on the quarter. The street was expecting $3.06 billion.
- BlackBerry sold around 3.7 million smartphones. It sold 6.8 million smartphones last quarter.
- BlackBerry is taking a pretax charge of at least $930 million on unsold inventory,
- BlackBerry is cutting its operating expenditures in half by the first quarter of 2015.
- BlackBerry has $2.6 billion in cash, down from $3 billion last quarter.
Given these events, I cannot see how much longer this company will survive.
UPDATE: Investors typed the word “sell” into their iPhones and Android phones and the stock took a 17% hit. It should also be noted that BlackBerry is going to focus on business and prosumer markets from now on. Good luck with that.
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This entry was posted on September 20, 2013 at 4:29 pm and is filed under Commentary with tags BlackBerry. You can follow any responses to this entry through the RSS 2.0 feed.
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BlackBerry Loses A Billion And Confirms Job Cuts [UPDATED]
The end cannot be far away for BlackBerry.
The company this afternoon halted trading of it’s stock and announced the slashing of 4,500 jobs and that it will report a net operating loss of nearly $1 billion in fiscal Q2. The bad news doesn’t end there:
Given these events, I cannot see how much longer this company will survive.
UPDATE: Investors typed the word “sell” into their iPhones and Android phones and the stock took a 17% hit. It should also be noted that BlackBerry is going to focus on business and prosumer markets from now on. Good luck with that.
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This entry was posted on September 20, 2013 at 4:29 pm and is filed under Commentary with tags BlackBerry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.