BlackBerry to report Q2 results on Friday, decides to cancel its conference call with shareholders and analysts

Ian Hardy

September 25, 2013 8:49pm

This is an interesting move by Waterloo-based BlackBerry.

The company is set to announce their Q2 financial results this Friday. They let the world know last week that it’s not going to be pretty with net losses coming in between $950 million and $1 billion, revenues of $1.6 billion and sales of 3.7 million smartphones. BlackBerry will officially release results at 7:00am EST, then an hour later was supposed to talk with analysts and investors on their earnings conference call. However…

“In light of the letter of intent agreement between BlackBerry and Fairfax Financial Holdings Limited that was signed and announced on Monday, September 23, BlackBerry has cancelled its second quarter earnings conference call and webcast that had previously been scheduled for Friday, September 27 at 8:00 a.m. The company will publish further details regarding its second quarter results in the Management’s Discussion and Analysis and consolidated financial statements, to be filed next week.”

Fairfax has made a bid to acquire BlackBerry for $4.7 billion with plans to take them private. However, the press release also noted that Fairfax is still ‘seeking financing from BofA Merrill Lynch and BMO Capital Markets.’ Prem Watsa, Chairman and CEO of Fairfax, is a reputable businessman and will most likely find a way to get the necessary funds to complete the deal – which is expected to close by November 4th. In the meantime, the LOI also states that BlackBerry is ‘entitled to go-shop’ for other deals.

BlackBerry execs probably have limited info to share, but technically until a transaction occurs, they are still very much a public company and cancelling the Q2 conference call with its shareholders and the analyst community is sending a strong message about where the company sees its future.

BlackBerry’s stock closed today at $8.01 and Fairfax is offering $9 per share (USD) if/when the deal is closed.

Source: MarketWired
Via: CrackBerry

  • Tadooh

    Uhh, yeah.
    Go blackberry go? SMH

    • J-Ro

      The same place you get a free surface.

  • Rich

    Another slap in the face to investors.

  • 01011001001

    Wow these guys just have no respect. Might as well, as there’s nothing TH can say that will make anything sound good.

  • Wadeep Singh

    The executives are afraid of questions from shareholders…CHICKENS**TS

    Thor just wants his $55mil, Prem and Mike L will see that he gets it.

  • Striker67

    Actually this makes total sense. It shows the management has no intent to shop for other offers and that pending due diligence will go private. Therefore I would also say that forward guidance to analysts serves no purpose.

    • Wadeep Singh

      Until they are actually a private company they report to the shareholders. They should be answering their questions.

      When/if they go private, then they answer to the new owners.

    • Striker67

      This info will still be released just not in the normal way.

    • DickGozinya

      So what. The point is they have a moral responsibility and obligation to do what is essentially THEIR JOBS. Most incompetent bunch of losers ever.

    • Striker67

      Bottom line here is that the whole purpose of analysts’ calls is to give forward guidance. Whether anyone likes it or not this board will accept the deal and go private. Providing verbal forward guidance through a phone call to a bunch of people that are not really going to matter soon to blackberry is truly a waste of time. The board wants their money when the company is sold and they could really care less about the shareholders, analysts or even their employees for that matter. When the company is up for sale there is no real forward guidance that they could really be held to since the direction of the company will most likely change very soon anyway.

  • Wadeep Singh

    Chief legal officer Steve Zipperstein would see the second-largest amount of any BlackBerry exec — $7.9 million U.S. in the case of a change of ownership.

    The remaining compensation packages for BlackBerry’s senior execs, in the event of a takeover, are:

    — Frank Boulben, chief marketing officer: $7.7 million U.S.
    — Kristian tear, chief operating officer: $7.4 million U.S.
    — Brian Bidulka, chief financial officer: $6 million U.S.

  • wildspin

    Anything about BBRY is simply a waste of bandwidth now.

  • skullan

    I bet you there was a large smile on the BB management team’s faces when they said “Meh, nah, don’t want to do it, cancel that meeting”.

  • DickGozinya

    Douchbags deluxe. So glad this is almost over.

  • J-Ro

    Blackberry has such an out window when it comes to their operations. Would a sales call really be needed? With all the media attention they have been getting. Most regular non-investors know that not only have they had a near $1B loss but also what the CEO had for breakfast. I think public hate has gone a little too far when it comes to this company.

    It is getting to the point where it is hard to tell what is happening and what is not, thanks to all the “experts” and their input. unpreferred investor should be the most upset, because they have no idea what to belive but I would think they pulled out long ago.

  • graze81

    Seems like the higher ups would rather hide then answers from shareholders. If I invested in this company, I’d be PO’d about this. When people have so many questions about the future of this company, it’s a good time to not answer them.

  • Tadooh

    So bad their cancelling the call. That’s gotta be the most pussyish action I’ve ever seen come out of a leader of any large Corp. What a frigging joke. Guy needs such a large kick in the head its sad.

  • Tadooh

    FYI, it may not be a legal requirement for them to have the call, but who in the f doesnt? This is almost an impresidented unheardof. It is one of many C-level responsibilities and jobs you know.