BlackBerry Chief "Very Disappointed" with $965 Million Loss in Q2, Major Changes Ahead
You have to wonder how much of a beating BlackBerry can take. After another period of struggling to compete with not only Android and iOS, but also having fallen behind Microsoft's Windows Phone platform in mobile market share, BlackBerry on Friday reported a loss of $965 million on revenue of $1.6 billion for its second quarter ended August 31, 2013. The massive loss is largely a result of a $934 million charge on unsold Z10 smartphone inventory, plus an additional $72 million mostly related to layoffs.
BlackBerry's $1.6 billion in revenue is down 49 percent from $3.1 billion in the previous quarter and down 45 percent from $2.9 billion in the same quarter of fiscal 2013, BlackBerry said. It was almost an even split between hardware (49 percent) and services (46 percent), with software and other revenue accounting for the remaining 5 percent.
Outside of the NBA, this is what a flop looks like.
BlackBerry said it shipped 3.7 million smartphones in Q2, most of which are recognized as BlackBerry 7 devices. Part of the reason for that is because certain BlackBerry 10 devices that were shipped in Q2 won't be tallied up until those devices end up being sold to end customers. In all, about 5.9 million BlackBerry smartphones were sold through to end customers during the quarter, BlackBerry said.
"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.
Heins added that BlackBerry is in good shape financially with $2.6 billion in cash saved up and no debt to speak of. That's impressive for a company struggling as much as BlackBerry, but it also represents a $500 million decline in its cash reserve compared to the last quarter.
BlackBerry's $1.6 billion in revenue is down 49 percent from $3.1 billion in the previous quarter and down 45 percent from $2.9 billion in the same quarter of fiscal 2013, BlackBerry said. It was almost an even split between hardware (49 percent) and services (46 percent), with software and other revenue accounting for the remaining 5 percent.
Outside of the NBA, this is what a flop looks like.
BlackBerry said it shipped 3.7 million smartphones in Q2, most of which are recognized as BlackBerry 7 devices. Part of the reason for that is because certain BlackBerry 10 devices that were shipped in Q2 won't be tallied up until those devices end up being sold to end customers. In all, about 5.9 million BlackBerry smartphones were sold through to end customers during the quarter, BlackBerry said.
"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.
Heins added that BlackBerry is in good shape financially with $2.6 billion in cash saved up and no debt to speak of. That's impressive for a company struggling as much as BlackBerry, but it also represents a $500 million decline in its cash reserve compared to the last quarter.
