BlackBerry Sinks into Financial Loss As Revenues Plunge
Published on: 28th Mar 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
Struggling smartphone manufacture BlackBerry saw its fourth quarter revenues plunge by nearly two thirds as the company continued to see handset sales slide.
The company reported that fourth-quarter revenues were down by 64% at US$976 billion, compared to USD2.7 billion a year ago.
The revenue breakdown for the quarter was approximately 37% for hardware, 56% for services and 7% for software and other revenue.
The company also posted a net loss of USD423 million compared to a profit of USD98 million a year ago. The company was hurt by a write-down of US$382 million and charges of USD148 million.
Excluding those one-off issues, the adjusted loss from continuing operations was $42 million
During the fourth quarter, approximately 3.4 million BlackBerry smartphones
were sold through to end customers, -- down on the 6 million units shipped a year earlier. Of the BlackBerry smartphones sold through to end customers, approximately 2.3 million were BlackBerry 7 devices -- suggesting that the company is still struggling to persuade customers to switch to its BB10 OS.
The company had already taken a write down on its BB10 inventory in the previous quarter.
"We have significantly streamlined operations, allowing us to reach our expense reduction target one quarter ahead of schedule," said John Chen, Executive Chairman and Chief Executive Officer of BlackBerry.
The Company is targeting break even cash flow results by the end of fiscal 2015. Following recent investments, it is sitting on USD2.7 billion in cash to see it through to the turn around. If it happens.