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BlackBerry's Q2 earnings report as bad as it said it would be

Posted: , by Alan F.

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BlackBerry's Q2 earnings report as bad as it said it would be
Last Friday, BlackBerry warned the Wall Street community and the world that thanks to a write down of nearly $1 billion in BlackBerry Z10 handsets, the Canadian company would post an operating loss of more than $900 million in the second quarter. Today, a week later, BlackBerry released the actual report which showed a whopping 49% drop in quarterly revenue on a sequential basis to $1.6 billion from the first quarter's $3.1 billion. Prior to last week's warning, analysts expected BlackBerry to report second quarter revenue of $3.04 billion.

After taking a $935 million hit (right in the solar plexus) to write down inventory of the BlackBerry Z10, the company reported a second quarter GAAP loss from continuing operations of $965 million. The massive non-cash charge obviously made up the majority of the operating loss for the period. Instead of having a cash flow into the company, which BlackBerry did to the tune of $630 million for the prior quarter, the company ate up $136 million in the second quarter as cash on hand dropped to $2.6 billion from $3.1 billion.

The company canceled the conference call that it usually holds after its quarterly earnings report. The company has agreed to a $4.7 billion purchase from a consortium led by its largest shareholder, Fairfax Financial Holdings. Should BlackBerry find a better deal, it can pull out of the current transaction and pay Fairfax a break-up fee of $157 million.

"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."-Thorsten Heins, CEO, BlackBerry

source: AllThingsD

17 Comments
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posted on 27 Sep 2013, 17:42 3

1. scsa852k (Posts: 258; Member since: 16 Oct 2012)


That picture of Heins is worth a thousand words.

posted on 27 Sep 2013, 17:57 7

2. BillyG (Posts: 304; Member since: 24 Sep 2012)


i think it was taken with Z10 camera

posted on 27 Sep 2013, 20:07 2

8. fanboy1974 (Posts: 998; Member since: 12 Nov 2011)


They have plenty laying around.

posted on 27 Sep 2013, 18:15 2

3. PapaSmurf (Posts: 6658; Member since: 14 May 2012)


It's Titanic all over again.

posted on 27 Sep 2013, 18:15

4. RomeoJDR (Posts: 237; Member since: 09 Dec 2011)


Same song and dance from Heins. He just better hope he gets canned before Blackberry looses the funds necessary to pay his fat severance check.

posted on 27 Sep 2013, 18:39 7

5. woodshop20 (Posts: 459; Member since: 14 Sep 2013)


Apple will be the next Blackberry.

posted on 27 Sep 2013, 18:53 12

6. bucky (Posts: 1222; Member since: 30 Sep 2009)


Apple was not mentioned here at all. Why start a flame war? Or maybe just insecure?

posted on 27 Sep 2013, 19:52 2

7. skuld (Posts: 44; Member since: 10 Jan 2013)


following nokia's footsteps..

posted on 27 Sep 2013, 21:11 1

9. WindowsiDroid (Posts: 100; Member since: 22 Jul 2013)


But Nokia have been revive by Microsoft.

posted on 27 Sep 2013, 21:23 4

10. GadgetsMcGoo (Posts: 163; Member since: 15 Mar 2013)


For now.

posted on 28 Sep 2013, 03:22

11. shaheer7 (Posts: 15; Member since: 11 Jul 2013)


Blackberry.. start making phone based on Android operating system.. u will never suffer this huge loss :(

posted on 28 Sep 2013, 03:53

12. JunkCreek (Posts: 379; Member since: 13 Jul 2012)


It's over
You don't need to tell me
I hope you're with someone who makes you
feel safe in your sleeping tonight
I won't kill myself, trying to stay in your life
I got no distance left to run

When you see me
Please turn your back and walk away
I don't want to see you
Cos i know the dreams that you keep is wearing me
When your coming down, think of me here
I got no distance left to run

It's over, I knew it would end this way
I hope you're with someone who makes you feel
That this life is the night
And it settles down, stays around
Spends more time with you
I got no distance left to run

posted on 28 Sep 2013, 06:54

13. rob5150 (Posts: 90; Member since: 31 Oct 2011)


It is crazy how these companies operate totally blinded by their past grandeur.
Adopt android already. You would sell more than you are already. Stockholders are to blame just as much as the CEO. Stockholders should demand more.

posted on 28 Sep 2013, 08:55

14. Yes-Sir (banned) (Posts: 58; Member since: 16 Sep 2013)


BB & NokiaWP are in the same boat!
Apple shall be next....
R.I.P

posted on 28 Sep 2013, 13:36

15. maseholic (Posts: 11; Member since: 15 Jul 2013)


Blackberry, please reduce your price. It is better low profit than nothing.

posted on 29 Sep 2013, 05:53

16. evil.sidv (unregistered)


Blackberry phones are nice. I hope they can survive this situation

posted on 29 Sep 2013, 17:17

17. babyk (Posts: 198; Member since: 03 Nov 2011)


Will never survive it..Cant you see its Android And IOS Ruling things? And trust me of the TWO mentioned IOS Will soon = Blackberry.

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