BlackBerry reports nearly $1 billion quarterly loss for Q2

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BlackBerry Ltd stated a nearly $1 billion quarterly loss on Friday, days after accepting its greatest shareholder’s tentative $four.7 billion bid to take it out of the public eye.

BlackBerry, which had warned of the implications on September 20, mentioned its net loss for the 2d quarter ended on August 31 was $965 million, or $1.84 a share, while income fell 45 p.c to $1.6 billion from a yr past.

The loss incorporated a pretax noncash cost of about $934 million towards stock and provide commitments for its new Z10 phone.

the company, which is also planning to shed four,500 jobs, or more than one-0.33 of its body of workers, as it shrinks to center of attention on corporate and government clients, said it might no longer host the typical put up-results name for investors after signing a tentative $9-a-share agreement to be acquired by way of Fairfax financial, its biggest shareholder, on Monday.

The Waterloo, Ontario-primarily based company’s steep earnings decline – and mounting losses have revived fears that BlackBerry, as soon as a high-flyer and pioneer within the smartphone sector, now faces an ignominious loss of life.

“We’re very upset with our operational and monetary outcomes this quarter and have announced a collection of major changes to handle the aggressive hardware surroundings and our cost structure,” BlackBerry Chief executive Officer Thorsten Heins said within the revenue statement.

 

 

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BlackBerry said it offered 5.9 million principally older-edition telephones within the quarter, however handiest recognized income from three.7 million, on condition that many sales had already been booked. against this, Apple said it had offered 9 million of its new iPhone 5c and 5s models in the three days after launch.

Shares of BlackBerry edged up not up to 1 % to $eight in trading earlier than the market opened.

Author: Rohit Shetty

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