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

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.


source: AllThingsD

Related phones

Z10
  • Display 4.2 inches
    1280 x 768 pixels
  • Camera 8 MP (Single camera)
    2 MP front
  • Hardware Qualcomm Snapdragon S4 Plus
    2GB RAM
  • Storage 16GB, microSDXC
  • Battery 1800 mAh
  • OS BlackBerry 10.3

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