BlackBerry posts a quarterly loss of $84 million, ships 6.8 million phones
-- Revenue $3.1 billion, up 15% sequentially from the previous quarter
-- North America revenue grows sequentially 30%, APAC revenue grows 35%,
EMEA revenue grows 9%
-- LATAM revenue declines 6% as Venezuela foreign currency restrictions
negatively impact $72 million of service revenue recognition in the first
quarter; company gross margins negatively impacted by 2%
-- Shipments of 6.8 million smartphones, up 13% sequentially from the
-- GAAP loss from continuing operations of $84 million, or $0.16 per share
-- Adjusted loss from continuing operations of $67 million, or $0.13 per
-- Venezuela foreign currency restrictions impact reported GAAP earnings and
adjusted earnings by approximately $0.10 per share; excluding such impact,
adjusted earnings in-line with previously provided outlook of approaching
breakeven financial results
-- Cash flow from operations of $630 million
-- Cash and investments balance of $3.1 billion
Revenue for the first quarter of fiscal 2014 was $3.1 billion, up 15% from $2.7 billion in the previous quarter and up 9% from $2.8 billion in the same quarter of fiscal 2013. The revenue breakdown for the quarter was approximately 71% for hardware, 26% for service and 3% for software and other revenue. During the quarter, the Company shipped 6.8 million BlackBerry smartphones and approximately 100,000 BlackBerry PlayBook tablets.
GAAP loss from continuing operations for the quarter was $84 million, or $0.16 per share diluted, compared with a GAAP income from continuing operations of $94 million, or diluted earnings per share of $0.18, in the prior quarter and GAAP loss from continuing operations of $510 million, or $0.97 per share diluted, in the same quarter last year.
Adjusted loss from continuing operations for the first quarter was $67 million, or $0.13 per share diluted. Adjusted loss from continuing operations and adjusted diluted loss per share exclude the impact of pre-tax charges of $26 million ($17 million on an after tax basis) related to the Cost Optimization and Resource Efficiency ("CORE") program. This impact on GAAP loss from continuing operations and diluted loss per share from continuing operations are summarized in the table below.
The total of cash, cash equivalents, short-term and long-term investments was $3.1 billion as of June 1, 2013, compared to $2.9 billion at the end of the previous quarter, an increase of approximately $200 million from the prior quarter. Cash flow from operations in the first quarter was approximately $630 million. Uses of cash included intangible asset additions of approximately $335 million and capital expenditures of approximately $83 million.
"During the first quarter, we continued to focus our efforts on the global roll out of the BlackBerry 10 platform," said Thorsten Heins, President and CEO of BlackBerry. "We are still in the early stages of this launch, but already, the BlackBerry 10 platform and BlackBerry Enterprise Service 10 are proving themselves to customers to be very secure, flexible and dynamic mobile computing solutions. Over the next three quarters, we will be increasing our investments to support the roll out of new products and services, and to demonstrate that BlackBerry has established itself as a leading and vibrant player in next generation mobile computing solutions for both consumer and enterprise customers."
The smartphone market remains highly competitive, making it difficult to estimate units, revenue and levels of profitability. Throughout the remainder of fiscal 2014, the Company will invest in BlackBerry 10 smartphone launches, and the roll out of BlackBerry Enterprise Service 10, to continue to establish the new BlackBerry 10 platform in the marketplace. The Company will also invest resources to evolve BlackBerry Messenger into a leading cross platform mobile social messaging application, and launch other revenue initiatives associated with new services and emerging mobile computing opportunities. Based on the competitive market dynamics and these investments, the company anticipates it will generate an operating loss in the second quarter. The company will also continue to implement the cost savings and process-improving initiatives it started last year, in order to drive greater efficiency throughout the company, and redirect capital from these savings to areas of investment that will drive future revenue growth.
Reconciliation of GAAP loss from continuing operations before income taxes, loss from continuing operations and diluted loss per share from continuing operations to adjusted loss from continuing operations before income taxes, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations:
(United States dollars, in millions except per share data)
For the three months ended
As Reported: GAAP Charges(1) Adjusted
------------ ------------ --------
Loss from continuing operations
before income taxes $ (164) $ 26 $ (138)
Loss from continuing operations (84) 17 (67)
Diluted loss per share from
continuing operations $ (0.16) $ 0.03 $ (0.13)
======== ======== =======
-- Adjusted loss from continuing operations and diluted
loss per share from continuing operations include
the $72 million (approximately $50 million after tax
or $0.10 per share) impact on service revenue recognition
of the Venezuela foreign currency restrictions noted
Note: Adjusted loss from continuing operations before tax, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of adjusted loss from continuing operations before taxes, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations enables the Company and its shareholders to better assess the Company's operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of the Company's GAAP results.
(1) As part of the Company's ongoing effort to streamline its operations and increase efficiency, the Company commenced the CORE program in March 2012. During the first quarter of fiscal 2014, the Company incurred approximately $26 million in total pre-tax charges related to the CORE program. Substantially all of the pre-tax charges are related to one-time employee termination benefits and facilities costs. During the first quarter of fiscal 2014, charges of approximately $10 million were included in research and development and charges of approximately $16 million were included in selling, marketing, and administration expenses.
2. FlushGordon (unregistered)
I hope BB dies soon. Praying to God. Really
13. whoyton2 (banned) (Posts: 142; Member since: 19 Jun 2013)
Why do you want a company that employs tonnes of people to go bankrupt so they lose all of their jobs......
15. Nikolas.Oliver (Posts: 1340; Member since: 01 Jul 2012)
Move to another company like apple or google easy peasy:)
16. xperiaDROID (Posts: 4821; Member since: 08 Mar 2013)
You and FlushGordon should dig a hole and hide in it.
If a company go bankrupt that means many people will lose their jobs, you two have a bad heart.
I hope BB will be alive forever!
22. Nikolas.Oliver (Posts: 1340; Member since: 01 Jul 2012)
They have experiences which means they can go out and apply for another job at apple or google,
26. Whateverman (Posts: 3158; Member since: 17 May 2009)
So jobs are really that easy to find now? Huh!
I hope they change a few things, become a stronger company, and avoid laying people off. Have you ever been fired, had to sell your home, move to a different state, or even country, away from your friends and family, start all over again after years of hard work?
Your right, piece of cake!
29. VLaRueC (Posts: 87; Member since: 18 Dec 2012)
I hope you know, you're discussing jobs with a ten year old. Any silly would not make a statement wishing thousands of people to lose their jobs. This is why forum boards need an age checker.
33. verty (Posts: 89; Member since: 07 May 2012)
Nickolas now I know why your head is big........its hollow and empty. Is that how Google and Apple employs people?
17. whoyton2 (banned) (Posts: 142; Member since: 19 Jun 2013)
Like you I hate BB but that does not mean they should go bankrupt....
25. Apple.Android (Posts: 12; Member since: 28 Jun 2013)
They deserve to along with wp8!
Rest in peace both platform and brand
18. eisenbricher (Posts: 964; Member since: 09 Aug 2012)
lolol Nikolas you must be dancing with joy xD
27. Apple.Android (Posts: 12; Member since: 28 Jun 2013)
True leave bb and nokia wphonefail8 to iOS and android
39. Droid_X_Doug (Posts: 5282; Member since: 22 Dec 2010)
I am not praying for BB to go away. I have just moved on.
A lot of other BB/RIM customers are doing the same thing once their contracts are up.
44. Xtasy (Posts: 270; Member since: 13 Jan 2013)
First off I have no contact on Tmobile. I have the Z10 and no I won't move onto another phone.. This phone is amazing. They lost money because a lot of people like that retard Nicholas think that this is like the old BB phones but it's an all new and great phone that kills google and apple. I couldn't care less what other people think or use. I use what I like and that's what makes us BB people different and unique
5. Dorothy69 (banned) (Posts: 498; Member since: 21 May 2013)
I've arranged a wake at my local funeral parlor but, I doubt anyone's gonna' show up :(
45. Xtasy (Posts: 270; Member since: 13 Jan 2013)
I would like to RIP your gay ass.. hahaha Yibanashka
7. alterecho (Posts: 958; Member since: 23 Feb 2012)
Why? What did they do wrong apart from pricing the Z10 and Q10 exhorbitantly? I don't know much about Blackberry before the launch of the Z10.
40. Droid_X_Doug (Posts: 5282; Member since: 22 Dec 2010)
What did they do wrong?
Um, two thoughts:
1. Didn't release a keyboard edition of their phone first.
2. Their new phones are about 2 years behind the power curve.
Nokia is leveraging their strength in camera technology to differentiate themselves. HTC put some real effort into the One and it is paying off. But RIM still knows better than the market - even after what, 3 years of declining market share that says they don't know better.
8. EXkurogane (Posts: 863; Member since: 07 Mar 2013)
Did they kidnapped your family or something? No, right?
Then leave them be. No one likes to see a company fail.
21. Nikolas.Oliver (Posts: 1340; Member since: 01 Jul 2012)
They did :) They stole android and ios users
46. Xtasy (Posts: 270; Member since: 13 Jan 2013)
Yes, and they will continue to do so... just wait and see.. this is a new platform
24. Apple.Android (Posts: 12; Member since: 28 Jun 2013)
No one likes a platform which has hardly any apps and games
Wp8 and BB users can go to Android and iOS
36. Rio1983 (Posts: 25; Member since: 03 Dec 2011)
You arent smart at all if you think bb users and wp8 users arent there for a reason. I have a iphone and an HTC one and there is things that my Z 10 do that the others dont. Fresh out the box. The future of blackberry is bright and just so you know the z 10 is my first blackberry. 55% of the people that got the z10 was first time users to the platform.
47. Xtasy (Posts: 270; Member since: 13 Jan 2013)
I have plenty enough games.. But I don't have time for batman and combat 4 games on a cell phone.. only children like you do. Plus it kills battery life quickly... BB has a lot of great games though some of which I played addictively. If u don't know than shut down
50. Xtasy (Posts: 270; Member since: 13 Jan 2013)
Ask yourself one question.. How many of those apps do u use on a daily basis? I use the ones I need most.. BB has the apps that I need which includes an absolute amazing built in photo editor and video editing softwares
10. HASHTAG (unregistered)
Like, for what reason(s) exactly?
4. Nikolas.Oliver (Posts: 1340; Member since: 01 Jul 2012)
Nice :) I Hope they go bankrupt very very soon...
14. whoyton2 (banned) (Posts: 142; Member since: 19 Jun 2013)
Why do you want a company that employs tonnes of people to go bankrupt so they lose all of their jobs......
6. shikroi (Posts: 182; Member since: 24 Sep 2012)
So how much of the 6.8 million devices sold are BB10 devices?
30. shikroi (Posts: 182; Member since: 24 Sep 2012)
I know its a combination of all BBs that's why I am asking how much of the total number of devices sold are BB10 devices.
31. shikroi (Posts: 182; Member since: 24 Sep 2012)
Just found out. 2.6million BB10 devices were sold.
48. Xtasy (Posts: 270; Member since: 13 Jan 2013)
don't forget that only 2 months were accounted for in USA for the Z10 and that the Q10 just came out recently
51. mike.messiah (Posts: 6; Member since: 07 Apr 2012)
OMG, that means there are 2.6 million idiots !!!
28. Cyberchum (Posts: 202; Member since: 24 Oct 2012)
BlackBerry sailing through? I don't see that happening.
32. Zeus.k (unregistered)
Their shares are down by 28.80%. BB will be left in the dust if they don't evolve quickly.
49. Xtasy (Posts: 270; Member since: 13 Jan 2013)
They already evolved.. It's just dumb people like u can't see that or won't allow yourself to see it. People like u should evolve lol
34. aco96 (Posts: 168; Member since: 12 Oct 2012)
Can't wait to buy Z10 - amazing phone. I hope BB won't die.
41. Droid_X_Doug (Posts: 5282; Member since: 22 Dec 2010)
Wait a little longer and you could get one for free.
35. isprobi (Posts: 117; Member since: 30 May 2011)
I have a Z10 so of course I would like BB to remain in business. It's not a bad phone but it can't do everything my Galaxy Note can. But the Z10 UI is better in my opinion. Right now I don't know what I would buy when my contract is up for renewal next month. I like the Sony ZU except they went cheap on the camera. Samsung just feels too plastic. HTC is struggling. I tried WP 7.5 and found it boring and it lacked features I needed like Adobe Flash support. iPhone is too limited in hardware choice. All these phones and nothing fits what I want.
38. snowgator (Posts: 3159; Member since: 19 Jan 2011)
I had a blast- an absolute BLAST- playing around with the Z10. For anyone who enjoyed WebOS or is tired of the "scroll, find, tap" type of smart phone OS, this is a fun, different, and exciting new OS. I love the keyboard- the "flick" the word based on your spelling and the scroll backwards to erase is near genius.
BB10 is a good OS. I am a little worried they may not be able to build an entire ecosystem, and I am worried they may not be able to fund hardware and software upgrades themselves. They are not Apple, and even Apple is having trouble keeping up. I also need a bigger screen to enjoy multimedia, or maybe another Torch style-slider with a Z10 size screen.
But I am cheering for them. I think they have knocked it out of the park with this OS. I truly do. Spend some time with it with an open mind.
42. GeekMovement (Posts: 1497; Member since: 09 Sep 2011)
I personally hope BlackBerry stays alive and just improves their smartphones. I think the BB10 OS has potential.
43. apiskula (limited) (Posts: 441; Member since: 25 Jan 2013)
This is great news. Blackberry is done. See ya later Thorsten you failure