BlackBerry announces poor Q3 results

Ian Hardy

December 20, 2013 7:15 am

BlackBerry has just announced its third quarter fiscal 2014 results and, as expected, they aren’t pretty. The Waterloo-based business has been through a consistent “transformation” that recently saw the company completely shed their executive team, and usher in the era of John Chen — who’s known as “the fixer.”

Backed with two open letters, Chen previously noted that BlackBerry will focus its efforts on the enterprise market by “going back to our heritage and roots.” Three months ago, at the end of Q2, former CEO Thorsten Heins stated, “We remain a financially strong company,” but the company still lost $965 million, mainly due to a “BlackBerry Z10 Inventory Charge.”

Now, three months later, BlackBerry has yet again lost a massive amount of money. According to their filing, BlackBerry had Q3 revenues of $1.2 billion, down from $1.6 billion in Q2, with a massive net loss of $4.4 billion. As for smartphones sales, BlackBerry said, “approximately 4.3 million BlackBerry smartphones were sold through to end customers,” but only managed to “recognized hardware revenue on approximately 1.9 million BlackBerry smartphones.” One would think that hardware sales were mostly BlackBerry 10 devices (Z10, Q10, Z30 and Q5), but the report noted that “most of the units recognized were BlackBerry 7 devices.” The good news is that BlackBerry has $3.2 billion cash on hand.

John Chen, Executive Chairman and CEO of BlackBerry, stated “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… We have accomplished a lot in the past 45 days, but still have significant work ahead of us as we target improved financial performance next year. However, the Company is financially strong, has a broad and trusted product portfolio to work with, a talented employee base and a new leadership team dedicated to implementing our new roadmap.”

Source: MarketWired

  • Rich

    RIP BB

  • Marissa

    So they had $3.2 billion cash on hand and they lost $4.4 billion. I think that means it is over?

    • tom

      Big portion of this 4.4b are write-offs (non-cash)

  • StevieY

    LOL RIP

  • skullan

    On a positive note:

    Over 40 million newly registered iOS/Android users in the last 60 days;
    more than a dozen Android OEMs to preload BBM, including most recently
    LG;

    • Matt

      Plot twist: If they measured uninstalls as well, there’s actually only 37 people with BBM still on their phone.

    • Skbwolf

      60% using it daily, Chen just said it in his call

    • Matt

      Really! That’s a good share. If that’s the case, I take back my snarky comment. :-o

    • hajflfsklf

      but… how many switched off bb phones and got android/iphones because bbm is no longer exclusive on bb?

  • CybilV

    they are playing the song “LET THE BODIES HIT THE FLOOR!” in the rim hallways today.

    the once mighty giant has fallen.

    RIP RIM. RIP! RIP!

    • Syaz

      Firstly, they’re no longer RIM. Secondly, why so much hatred? What did BlackBerry do to you?

    • Josh Brown

      Fired half of my neighbors and friends be management was too stupid to change.

    • Syaz

      Ah, that makes sense. I was working in the area for quite some time and knew a number of employees who were let go. It’s quite sad.

    • Josh Brown

      Also they are a willing part of rock star. The most evil company in Canada.

    • TheFloppyBeaver

      Yet, people just like yourself who hate on the company and criticize them for everything from business decisions to product offerings for no reason.

      You yourself have said that you’ve never even touched a BB10 phone, yet have such strong negative opinions and is now blaming them for laying off people?

      Ya that makes perfect rational sense.

    • Josh Brown

      “Yet, people just like yourself who hate on the company and criticize them for everything from business decisions to product offerings for no reason.”

      I remember BB making fun of IOS and android devices when they first came out saying they were toys, they had much deeper OSes on them and had way more features. They were so proud about not changing, they sunk the company by the time they gave in and started developing BB10. In the mobile industry 6 months is a life time. If you cant keep up you will die, and that is what happened.

      “You yourself have said that you’ve never even touched a BB10 phone,”

      I have touched one(several friends of mine try and get me to sideload android apps on them) and I feel that they are no better than an IOS device or Android, yet they came out 4-5 years later. I have consistently said that if you want to get your customers back you need features that make people jealous they don’t have one. Nothing on BB10 comes close to that.

    • Columbo

      That sucks, but I don’t see why people who were personally affected by this have a desire to see even MORE people lose their jobs…

    • Josh Brown

      Because the company makes the stupidest decisions. Why oh why, did they pay 25 million dollars to the CEO to sink the ship? If he had of sold it and got fired he would have gotten 50 million. Yet 4500 people get booted out the door? My bosses wife got fired in the first round of 2000 layoffs and it was the best thing ever now she has a good job some where else and she beat everyone to it. If I worked there I would jump ship before it completely sinks.

      They only hope for it is if Google or Microsoft buys it and saves everyones jobs.

  • CybilV

    somewhere in the world thorsten has achieved safe landing from his golden parachute, laughing with his $25MM shoved up his arse, and smiling that he tanked the company to get rich.

    THOR THE CEO!!!!!!

    • TheFloppyBeaver

      Any C level exec will have a golden parachute. It’s how businesses works today.

      Heins’ plan was to get BB10 to work and save the company, obviously he failed to do that. But that doesn’t mean he purposely “tanked the company”.

  • Rory

    I thought Thorsten Heins was supposed to fix Blackberry, after this new guy I wonder who the next fixer will be. Its like people are taking turns at winning the lottery and early retirement.

    • Skbwolf

      Shame Chen did not take over 18 months ago, probably the best conference from a blackberry ceo in ages, which explains the stock being up now. but could be a head fake

  • Swordfish

    I don’t understand Blackberry anymore. Obviously the new hardware is not catching on so after they lay everyone off, what’s next? You can’t run Blackberry on BBM advertising so where is the revenue going to come from. I have a Blackberry Bold and it is twice the phone of my buddies new Q10. His phone locks up 5 – 10 times a day. He said he’s had enough and is getting a Note 3. How does Blackberry combat that attitude? I’ve not heard anything from them on what there plan is other than to lay everyone off. Changing executives who just follow the lemmings before them isn’t going to fix this company.

    • J-Ro

      I have a Q10 and I haven’t experienced the screen freeze issue (but i have seen it). If they fix that, it would be very close to perfect.

      For BBM, I think they plan on monetizing channels. Getting people to be “preferred” sponsors and prime real estate on the home page of channels should bring in some decent money.

      I think that they will likely fix a lot of the issues with the Q10 in a few more updates, which kind sucks for us in the mean time.

  • Paul Figueiredo

    Maybe it’s too early in the morning and my brain isn’t functioning fully yet, but: “third quarter fiscal 2014″? Wouldn’t that be 2013?

    By the end of third quarter 2014 Blackberry probably won’t exist in it’s present form, so why the future dated articles?

  • Sam

    4.4 million phones sold and 4.3 billion lost. So basically they lost a $1000 for every phone sold.

  • morgan

    I can’t believe they continue to bleed huge amounts of money still. Why hasn’t somebody stepped up and sold what ever is worth selling already. The new 10’s are garbage, lets face it they will never turn anything around and it’s time to bail. I did and I regret nothing. Not like they made me any money, I don’t miss having to do constant battery pulls lol

    • Skbwolf

      Because they have 3.2 bill in cash, the bleeding today was paper loss.