BlackBerry Bleeds Red Ink As It Posts $4.4 Billion Loss
Published on: 20th Dec 2013
By: Ian Mansfield
BlackBerry which describes itself as "a global leader in wireless innovation" has posted a net loss of USD4.4 billion for the three months to the end of November.
The loss was primarily due to a non-cash, pre-tax charge against long-lived assets of USD2.7 billion and an inventory write down of USD1.6 billion. There were other restructuring costs of USD266 million.
Excluding the charges, the company would have still posted a loss of US$354 million.
Revenues also more than halved -- falling by 56% to USD1.2 billion. The revenue breakdown for the quarter was approximately 40% for hardware, 53% for services and 7% for software and other revenue.
During the quarter, approximately 4.3 million BlackBerry smartphones were sold through to end customers, although that included shipments recorded the previous quarter. Of the smartphones sold, approximately 3.2 million were BlackBerry 7 devices.
"With the operational and organizational changes we have announced, BlackBerry has established a clear roadmap that will allow it to target a return to improved financial performance in the coming year," said John Chen, Executive Chairman and Chief Executive Officer of BlackBerry.
At the same time, the company has announced a 5-year deal with Foxconn to jointly develop and manufacture certain new BlackBerry devices and manage the inventory associated with those devices. The initial focus of the partnership will be a smartphone for Indonesia and other fast-growing markets targeting early 2014.