BlackBerry on Q2 results: ‘We are very disappointed’

These Q2 numbers below are not too shocking as BlackBerry already confirmed what we would be seeing today

According to their Q2 fiscal 2014 results (ending August 31st, 2013), BlackBerry recorded revenues of $1.6 billion, down 49% from $3.1 billion in the previous quarter, and sold “approximately 3.7 million smartphones.” The release clarifies, however, that “most of the units recognized are BlackBerry 7 devices, in part because certain BlackBerry 10 devices that were shipped in the second quarter of fiscal 2014 will not be recognized until those devices are sold through to end customers.” The main brunt of the $965 million operating loss was thanks to a “BlackBerry Z10 Inventory Charge” of $934 million. Cash on hand is $2.6 billion, and the company remains debt-free.

We remain a financially strong company.

Thorsten Heins, President and CEO of BlackBerry, stated “We are very disappointed with our operational and financial results this quarter and have announced a series of major changes to address the competitive hardware environment and our cost structure. While our company goes through the necessary changes to create the best business model for our hardware business, we continue to see confidence from our customers through the increasing penetration of BES 10, where we now have more than 25,000 commercial and test servers installed to date, up from 19,000 in July 2013. We understand how some of the activities we are going through create uncertainty, but we remain a financially strong company with $2.6 billion in cash and no debt. We are focused on our targeted markets, and are committed to completing our transition quickly in order to establish a more focused and efficient company.”

BlackBerry recently announced they would cut 4,500 jobs, plus that they had bid from Fairfax Financial to acquire BlackBerry for $4.7 billion with plans to take them private.

Source: Marketwired