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Dec 20, 2013

BlackBerry Posts $4.4 Billion (€3.2 Billion) Loss for Q3

Today, Canadian mobile phone maker BlackBerry has announced its financial results for the third quarter of its financial year 2014, and posted a total loss of $4.4 (€3.22) billion for the timeframe.

The company announced that its revenue for the timeframe was in the $1.2 (€0.88) billion range, down from $1.6 (€1.17) billion in the previous quarter, and that it had managed to sell around 1.9 million smartphones during the three-month period (down from 3.7 million). BlackBerry also announced that it “takes primarily non-cash, pre-tax charges of $4.6 (€3.37) billion associated with long-lived assets, inventory and supply commitments, and previously announced restructuring and strategic review process.” At the same time, it unveiled that “GAAP loss from continuing operations of $4.4 billion, or $8.37 (€6.13) per share diluted, compared with a GAAP loss from continuing operations of $965 (€707) million, or $1.84 (€1.35) per share diluted, in the prior quarter.” Moreover, adjusted loss from continuing operations for the third quarter was of $354 (€259.5) million, or $0.67 (€0.49) per share diluted, marking a sharp downgrade from the second quarter of the fiscal year.

However, BlackBerry registered some gains as well, including the addition of over 40 million new BBM users due to the launch of the service on iOS and Android devices, and agreements with OEMs out there for the pre-loading of the messenger on their hardware. There have been over 250,000 BBM Channels created since the launch of the feature on BlackBerry, including some coming from large brands out there, such as Coke Indonesia and USA Today. In addition to unveiling these details on its financial performance, the company announced a five-year strategic partnership with Foxconn for the manufacturing of new BlackBerry devices.

Furthermore, Foxconn will engage into the development process, while also being in charge with the management of inventory associated with those devices. Initially, the partnership will focus on a smartphone for Indonesia and other fast-growing markets. The new device should be launched in early 2014.

BlackBerry's loss deepens in Q3 FY2014
Image credits to BlackBerry


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