BlackBerry Reports $965 Million In Losses For Q2

Posted on Sep 27 2013 - 6:07pm by Editorial Staff

BlackBerry

As expected, BlackBerry today announced its disastrous financial result. The mobile maker reported the revenue of approximately $1.6 billion with GAAP loss of $965 million, or $1.84 per share diluted while adjusted loss from continuing operations were of $248 million, or $0.47 per share diluted; adjusted gross margin of $570 million, or 36%.

BlackBerry blamed Z10 sales as behind such a poor results while we reported yesterday only that the company called off its financial call to discuss the results with both analysts and investors. Other thing to note now that since the company having an offer in hand to sell it off to Fairfax Financial for $9 per share price or $4.7 billion in total, it would be interesting to see what’s going to be the next step.

Here is what Thorsten Heins, President and CEO of BlackBerry said about results:

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.

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.

Photo Credit: Flickr/Ryan Phillips

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Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.