BlackBerry Revenue Down by a Third As Smartphone Sales Nearly Halved
BlackBerry has announced that its fourth quarter revenues fell by more than a third to US$2.7 billion, and that its co-founder, Mike Lazaridis is to leave the company.
During the quarter, BlackBerry shipped approximately 6 million BlackBerry smartphones and approximately 370,000 BlackBerry PlayBook tablets. That compares to 11.1 million smartphones and 500,000 tablets shipped a year ago.
The figures for the most recent quarter only include partial sales of its new smartphones, as the launch in the key US market took place after the end of the financial quarter.
Its mobile services customer base fell by an average of a million a month during the quarter, ending the year at 76 million.
The revenue breakdown for the quarter was approximately 61% for hardware, 36%
for service and 3% for software and other revenue. The biggest declines in revenues were in the Americas, while Asia-Pacific was largely flat, and gains were made in the EMEA region.
However, the company posted a profit of US$94 million compared to a loss of US$118 million a year ago.
"We have implemented numerous changes at BlackBerry over the past year and those changes have resulted in the Company returning to profitability in the fourth quarter," said Thorsten Heins, President and CEO.
Looking ahead, the company said that it will be increasing its marketing investment in the first quarter of fiscal 2014 in support of the global launch of BlackBerry 10. Including the anticipated 50% sequential increase in marketing spending, the company believes it will approach breakeven financial results in the first quarter based on its lower cost base, more efficient supply chain, and improved hardware margins.