BlackBerry confirms losses of $965 million

BlackBerry confirms losses of $965 million

BlackBerry has announced a huge loss of $965 million (£560 million) for its Q2 results.

The flagging fortunes of the Canadian manufacturer have taken another hit after last week’s predicted results have become a reality. BlackBerry forecasted close to $1 billion losses after only selling 5.9 million smartphones in the preceding 3 months. In comparision, Apple sold 9 million iPhones 5c and 5s in the three days after the devices launched. Overall revenue was almost halved from $3.1 billion to $1.6 billion.

The company has also been subject of a buyout bid by financial services organisation Fairfax, while announcing that 4,500 members of its worldwide staff will be laid off in an organisational reshuffle.

President and CEO of BlackBerry, Thorsten Heins, said: ‘We are very disappointed with our operational and financial results this quarter and have announced a series of major changes to address the competitive hardware environment and our cost structure. While our company goes through the necessary changes to create the best business model for our hardware business, we continue to see confidence from our customers through the increasing penetration of BES 10, where we now have more than 25,000 commercial and test servers installed to date, up from 19,000 in July 2013. We understand how some of the activities we are going through create uncertainty, but we remain a financially strong company with $2.6 billion in cash and no debt. We are focused on our targeted markets, and are committed to completing our transition quickly in order to establish a more focused and efficient company.’

Author: Matthew Campelli

Written by Mobile Today
Mobile Today


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