BlackBerry has shocked investors by plunging back into a loss, despite the wider global launch of its BB10 handsets.
While revenue for the three months to the end of 1 June was up 15% on the previous quarter to $3.1bn, it posted a loss from continuing operations of $84m. In its previous quarter, it had a profit of $94m although its performance is an improvement on this time last year, when it made a loss of $510m.
BlackBerry said it shipped 6.8m smartphones during its first trading quarter of 2014, up 13% on the previous three months, and 100,000 PlayBook tablets. It did not strip out how many of these sales were of its new BB10 operating system, although CEO Thorsten Heins later said in an earnings call that it sold only 2.7m BB10 devices during the quarter. It also did not reveal its total subscriber numbers, which the manufacturer usually reveals on a quarterly basis. Across Europe, Middle East and Africa, sales increased by 9.4% sequentially to $1.34bn.
BlackBerry warned a second quarter loss was likely, due to competition in the mobile market and spending to try and break the new BB10 OS into the mainstream. The manufacturer has a healthy cash pile, improving its position by $200m during the quarter to $3.1bn. It said money from its cost-saving initiatives would be plunged into trying to improve its sales
Thorsten Heins, CEO of BlackBerry, said: 'During the first quarter, we continued to focus our efforts on the global roll out of the BlackBerry 10 platform. 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.'
Author: Graeme Neill