BlackBerry posts $4.4 billion loss in Q3 results

BlackBerry posts $4.4 billion loss in Q3 results

BlackBerry's financial slide continued as the struggling manufacturer announced a $4.4 billion (£2.7 billion) loss in its Q3 results today.

The Canadian firm posted losses after incurring a $2.7 billion LLU Impairment Charge and an Inventory Charge of $1.6 billion. Revenue was down by $380 million dollars to $1.2 billion, representing a 24% decrease. Handset sales also fell to 1.9 million smartphones compared to 3.7 million in the previous quarter.

Elsewhere, the company reported that 40 million Android and iOS users had downloaded its BlackBerry Messaging Service, while its BES10 leapt from 25,000 in September 2013 to 30,000. A five-year strategic partnership with electronics manufacturer Foxconn was also announced by CEO John Chen, with Foxconn jointly developing and manufacturing certain BlackBerry handsets.

Chen said: ‘With the operational and organizational changes we have announced, BlackBerry has established a clear roadmap that will allow it to target a return to improved financial performance in the coming year. While our Enterprise Services, Messaging and QNX Embedded businesses are already well-positioned to compete in their markets, the most immediate challenge for the Company is how to transition the devices operations to a more profitable business model.

‘We have accomplished a lot in the past 45 days, but still have significant work ahead of us as we target improved financial performance next year. However, the Company is financially strong, has a broad and trusted product portfolio to work with, a talented employee base and a new leadership team dedicated to implementing our new roadmap.

‘This partnership demonstrates BlackBerry’s commitment to the device market for the long-term and our determination to remain the innovation leader in secure end-to-end mobile solutions. Partnering with Foxconn allows BlackBerry to focus on what we do best – iconic design, world-class security, software development and enterprise mobility management –while simultaneously addressing fast-growing markets leveraging Foxconn’s scale and efficiency that will allow us to compete more effectively.’


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