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

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1. scsa852k

Posts: 331; Member since: Oct 16, 2012

That picture of Heins is worth a thousand words.

2. BillyG

Posts: 305; Member since: Sep 24, 2012

i think it was taken with Z10 camera

8. fanboy1974

Posts: 1345; Member since: Nov 12, 2011

They have plenty laying around.

3. PapaSmurf

Posts: 10457; Member since: May 14, 2012

It's Titanic all over again.

4. RomeoJDR

Posts: 245; Member since: Dec 09, 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.

5. woodshop20

Posts: 459; Member since: Sep 14, 2013

Apple will be the next Blackberry.

6. bucky

Posts: 3795; Member since: Sep 30, 2009

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

7. skuld

Posts: 44; Member since: Jan 10, 2013

following nokia's footsteps..

9. WindowsiDroid

Posts: 138; Member since: Jul 22, 2013

But Nokia have been revive by Microsoft.

10. GadgetsMcGoo

Posts: 168; Member since: Mar 15, 2013

For now.

11. shaheer7

Posts: 22; Member since: Jul 11, 2013

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

12. JunkCreek

Posts: 407; Member since: Jul 13, 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

13. rob5150

Posts: 183; Member since: Oct 31, 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.

14. Yes-Sir

Posts: 58; Member since: Sep 16, 2013

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

15. maseholic

Posts: 11; Member since: Jul 15, 2013

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

16. evil.sidv unregistered

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

17. babyk

Posts: 379; Member since: Nov 03, 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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