Net loss for the second quarter ending on 31 August was $965 million, or $1.84 a share, while revenue was down 49 per cent from $3.1 billion in the previous quarter and down 45 per cent from $2.9 billion in the same quarter of fiscal 2013. The company recognised revenue on approximately 3.7 million BlackBerry smartphones, although most of the units recognised were BlackBerry 7 devices. 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 loss included a pre-tax non-cash charge of about $934 million against inventory and supply commitments for its Z10 phone, which launched in January. The decrease in revenue is about in line with what the company had indicated it would be in last week’s guidance, when it also said it would cut 4,500 jobs – representing about 40 per cent of its work force. However, the company suffered an adjusted loss from continuing operations of $248 million, or 47 cents a share, which is on the low side of the 47 cent-to-51 cent range that Blackberry had warned of last week.
BlackBerry chief executive Thorsten Heins said he was "very disappointed" with the company's operational and financial results this quarter, and the company has announced a series of major changes to address the competitive hardware environment and its cost structure.
"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," Heins said in a statement. "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 company, which was formerly known as Research In Motion, used to dominate the market for corporate mobile phones, thanks to its secure network and traditional "qwerty" keyboard. However, it was one of a number of mobile manufacturers which lost its footing when Apple launched the first iPhone, and consumers started to ditch their BlackBerrys in favour of smartphones.
Source: The Telegraph
