It’s Official: BlackBerry Lost Almost A Billion Dollars

They warned you last week and now it’s official today based on this press release [Warning: PDF] from BlackBerry. Here are the grim details:

  • They posted a GAAP operating loss of $965 million on sales of $1.6 billion. A 49% year-over-year drop in revenues.
  • just 3.7 million smartphones got sold
  • $2.6 billion in reported cash down from the $3.1 billion reported last quarter

And then there’s this comment from the CEO of BlackBerry:

“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. “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. 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.”

Honestly, I am not sure anyone else has faith that this can be turned around. Expect the market open to be interesting for this stock.

Leave a Reply

Discover more from The IT Nerd

Subscribe now to keep reading and get access to the full archive.

Continue reading