BlackBerry balances the books: losses go 1000% down, but revenue drops below $1 billion

BlackBerry balances the books: losses go 1000% down, but revenue drops below $1 billion
The hard times for BlackBerry continue, yet there seems to be light at the end of the tunnel. The still-struggling Canadian manufacturer just released its financial report for the last quarter of the fiscal year that ended March 1, 2014. Surprisingly, things are not as bad as it was expected.

The Waterloo-based manufacturer reported that its overall revenue for Q4 dropped 18% and was slightly below the psychological barrier of $1 billion - BlackBerry's earnings fell to $976 million, an enormous 64% drop in comparison with the last quarter of the fiscal 2013. Device sales account for about $361 million of BlackBerry's revenue during this period, while roughly $546 million were generated thanks to the company's numerous services. The remainder of $69 million was accumulated by BlackBerry's software products, such as the BES software package and BBM messenger.

The former giant revealed that it has sold just about 3.4 million smartphones in Q4 of the fiscal 2014 and roughly 63% of these (about 2.3 million) were BlackBerry 7 devices. Just as we told you several months ago, BlackBerry sold 4.3 million smartphones the previous quarter, 3.2 million of which were running BB OS 7. This is a clear sign that the newer BlackBerry 10 devices are still not very well accepted among users.

Turning our heads to the losses department, BlackBerry has a big surprise in tow for us! It seems that John Chen somewhat succeeded in stopping the company's downward drop, as BlackBerry's losses for the period are shy of $423 million, or $0.8 per single share. Fortunately, this is significantly less than the catastrophic loss of $4.4 billion reported for the previous quarter.

The financial report reveals that the company hopes to break even by the end of 2015. Hopefully, John Chen will succeed in his challenging goal of bringing BlackBerry back on its feet. Maybe one of the rumored BlackBerry devices will aid him?

source: BlackBerry via TechCrunch



1. isprobi

Posts: 797; Member since: May 30, 2011

So there is still hope for BB. I would much rather be carring a BB10 phone and do own a Z10 but AT&T just does not seem to be supporting the platform. So I am stuck with Android for now which is factory unlocked..

22. WahyuWisnu

Posts: 1001; Member since: May 29, 2014

No, there's no hope for bb. JC just do some tricky accounting. in this quarter bb make it looks bad, so in the next quarter it would be better. So, you will be stuck in android for undefinite amount of times, because bb will not coming back. it will be bankrupt very quickly.

2. alterecho

Posts: 1106; Member since: Feb 23, 2012

Was John Chen responsible for these great(comparatively) results? If so, he is great!

3. PeterK.

Posts: 314; Member since: Nov 13, 2013

Yes, the quarter before this still had the mark of Thorsten Heins.

7. alterecho

Posts: 1106; Member since: Feb 23, 2012

Looks like Chen is very capable. Lets see if he keeps delivering.

10. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Well stopping the bleeding is one thing, but becoming a success is another. After the culling I doubt their engineering and R&D are all in perfect shape so hopefully he can reorganize BB into a more efficient machine than before.

20. alterecho

Posts: 1106; Member since: Feb 23, 2012

Of the current CEO's, of major corporations, out there, i think Chen has the toughest job to handle. He's proven now, that he can manage it too. I also believe if anyone else would have gotten his job, BlacBerry would have eneded up in someone else's pocket by now (as in, the whole company).

8. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

well providing outdated specs and having hardly any apps and games, sure will lead to plumeting decline

14. Reluctant_Human

Posts: 913; Member since: Jun 28, 2012

John Chen has been smart enough to focus on the profitable part of the company which is the services and expand on that while buying time for the shortcomings of the Cell phone manufacturing division while that improves. From what I have been reading and seeing, I wouldn't bet against this man in the long term.

4. Felix_Gatto

Posts: 942; Member since: Jul 03, 2013

Go BB Go!!! You still have my support, and l'm waiting for Z3! Say NO to surrender!!!

5. camera531

Posts: 346; Member since: Jun 30, 2012

Smartwatches and wearables are going to explode in the 2nd half of the year, with Google leading the way. The Moto 360 and Android Wear (with Google Now) is going to really push wearables into the mainstream, with Google Glass and a ton of partnerships (Oakley, Ray-Ban, etc.) continuing the push. Apple will most likely introduce some kind of "iWatch" this year as well, not to mention all of the next gen tablets hitting the market now. My point is - BlackBerry is still trying to make an interesting smartphone, while the industry is about to make a big move toward wearables, with tablets becoming more and more popular as (somewhat) computer replacements. BlackBerry still doesn't have a mature ecosystem with apps and services (and no tablets - the Playbook is DEAD), compared to Google and Apple and even Microsoft, and they're about to get further left behind when wearables go mainstream. It is a HUGE mountain to climb, but I wish them luck!

9. isprobi

Posts: 797; Member since: May 30, 2011

I get your point. But I do not think the government and corpate customers BB wants to keep and lure will care that much about wearables. Most of them so far are pretty useless. A new tablet should be part of the plan.

11. camera531

Posts: 346; Member since: Jun 30, 2012

Government and corporate customers are leaning towards the BYOD trend more and more, and Google just announced that they're starting a major push to increase Android security for enterprise. Samsung's Knox seems to finally be getting some traction as well and Apple is also gaining a lot of corporate ground. It's soon going to be more than just smartphones for both consumers and enterprise, and I think wearables will definitely integrate into the corporate culture. Smartwatches will be very popular for easily and discreetly maintaining messages, etc. and Google Glass type devices will help in a variety of ways, from acting as "wearable teleprompters" to an endless amount of possibilities. In a couple of years, if all BlackBerry is doing is trying to make a better smartphone, they're finished. Another huge shift is about to happen in the industry.

15. isprobi

Posts: 797; Member since: May 30, 2011

What a sad disconnected human future.

16. thealphageek1

Posts: 942; Member since: Feb 02, 2013

And BlackBerry's EDM will manage it all! That's why they're shifting focus to services and software. BYOD.

17. camera531

Posts: 346; Member since: Jun 30, 2012

It's possible and I hope you're right, but they're still going to need devices to survive.

18. thealphageek1

Posts: 942; Member since: Feb 02, 2013

True. But remember: enterprises spend lots more on devices than consumers do, as they tend to buy in bulk. If BlackBerry can shore up their enterprise offerings and really lock enterprise and governments down, they should do well.

19. camera531

Posts: 346; Member since: Jun 30, 2012

Agreed. Time will tell.

6. thealphageek1

Posts: 942; Member since: Feb 02, 2013

So, while there were still losses, BlackBerry, under the leadership of John Chen, had a better than expected quarterly report. As I surmised, John Chen is leading BlackBerry back to the road of profitability. To the haters: BLACKBERRY IS NOT DEAD. There will be no epitaph. There numbers are improving, and will only get better. Good job, BlackBerry. Now let's make it even better.

12. cornerofthemoon

Posts: 620; Member since: Apr 20, 2010

I enjoyed the Z10 that I briefly had. I returned it to T Mobile just before the grace period expired, not because I didn't like the product, but due to the fact that all the BB10 bad press was coming to a head and I abandoned ship. I figure any chance for the appearence of any significant new apps was gone. That was before BB10's liberal acceptance of Android apps. I might return someday if BB gets its act together.

13. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Pretty good work. They need to focus for now on expanding their services offerings (since that seems to be making the most money) and offering good entry level devices and high end both for enterprise. I doubt they will stand much of a chance in the consumer market anymore, but they could pull an IBM and make it big in Enterprise if they play their cards right.

21. WahyuWisnu

Posts: 1001; Member since: May 29, 2014

accounting magic. brought to you by jacky chen... i think bb could not revive again. they already in deep sh!t for too long

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