BlackBerry posts a quarterly loss of $84 million, ships 6.8 million phones

BlackBerry posts a quarterly loss of $84 million, ships 6.8 million phones
BlackBerry just posted its latest quarterly results, and it managed to ship 6.8 million devices in the first quarter when the flagship Z10 has been sold for a complete period.

Revenue increased from $2.8 billion to $3.1 billion year-on-year, but restructuring charges and turnaround expenses are blamed for a quarterly loss of $84 million. Microsoft might have had a point when it bragged to be a viable third platform candidate with Windows Phone and Nokia's support now, beating BlackBerry for the spot. Needless to say, BlackBerry's shares took a nosedive after the press release.


WATERLOO, ONTARIO--(Marketwired - June 28, 2013) - Research In Motion Limited (doing business as BlackBerry(R)) (NASDAQ:BBRY)(TSX:BB), a world leader in the mobile communications market, today reported first quarter results for the three months ended June 1, 2013 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Q1 Highlights:

-- 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
previous quarter

-- 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
share

-- 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
Q1 Results

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."

Outlook

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
----------------------------------------
CORE
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
above.

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.

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51 Comments

1. papss unregistered

Ouch! Hope it gets better for them

2. FlushGordon unregistered

I hope BB dies soon. Praying to God. Really

3. Nikolas.Oliver

Posts: 1574; Member since: Jul 01, 2012

ME TOO!!! AMEN !

13. whoyton2

Posts: 142; Member since: Jun 19, 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: 1574; Member since: Jul 01, 2012

Move to another company like apple or google easy peasy:)

16. xperiaDROID

Posts: 5629; Member since: Mar 08, 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: 1574; Member since: Jul 01, 2012

They have experiences which means they can go out and apply for another job at apple or google,

26. Whateverman

Posts: 3295; Member since: May 17, 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: 189; Member since: Dec 18, 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: 132; Member since: May 07, 2012

Nickolas now I know why your head is big........its hollow and empty. Is that how Google and Apple employs people?

17. whoyton2

Posts: 142; Member since: Jun 19, 2013

Like you I hate BB but that does not mean they should go bankrupt....

25. Apple.Android

Posts: 12; Member since: Jun 28, 2013

They deserve to along with wp8! Rest in peace both platform and brand

18. eisenbricher

Posts: 973; Member since: Aug 09, 2012

lolol Nikolas you must be dancing with joy xD

19. Nikolas.Oliver

Posts: 1574; Member since: Jul 01, 2012

You know me so well :p

27. Apple.Android

Posts: 12; Member since: Jun 28, 2013

True leave bb and nokia wphonefail8 to iOS and android

39. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 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: 284; Member since: Jan 13, 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

Posts: 498; Member since: May 21, 2013

I've arranged a wake at my local funeral parlor but, I doubt anyone's gonna' show up :(

20. Nikolas.Oliver

Posts: 1574; Member since: Jul 01, 2012

BlackBerry is, Rest assured

45. Xtasy

Posts: 284; Member since: Jan 13, 2013

I would like to RIP your gay ass.. hahaha Yibanashka

7. alterecho

Posts: 1106; Member since: Feb 23, 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: 5993; Member since: Dec 22, 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: Mar 07, 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: 1574; Member since: Jul 01, 2012

They did :) They stole android and ios users

46. Xtasy

Posts: 284; Member since: Jan 13, 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: Jun 28, 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: Dec 03, 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: 284; Member since: Jan 13, 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: 284; Member since: Jan 13, 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?

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