Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
BlackBerry CEO and President Thorsten Heins unveils the BlackBerry 10 mobile platform in New York on January 30, 2013/AFP

Gadgets & Apps

BlackBerry posts $965 mn loss, vows ‘transition’

BlackBerry CEO and President Thorsten Heins unveils the BlackBerry 10 mobile platform in New York on January 30, 2013/AFP

BlackBerry CEO and President Thorsten Heins unveils the BlackBerry 10 mobile platform in New York on January 30, 2013/AFP

OTTAWA, Sep 27 – BlackBerry said Friday that it lost $965 million in the past quarter, confirming preliminary figures showing a rapidly eroding picture for the Canadian smartphone maker.

The company, which had given a preliminary estimate for its second fiscal quarter results, acknowledged the figures were weak, but said it hopes for a turnaround with a planned $4.7 billion buyout, which would take the firm private.

“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,” said Thorsten Heins, president and chief executive.

He added that the company is putting in place “the necessary changes to create the best business model” for its ailing product.

“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,” Heins said.

“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.”

Revenue for quarter ending August 31 was $1.6 billion, down 49 percent from $3.1 billion in the previous quarter and down 45 percent from $2.9 billion in the same quarter of fiscal 2013.

The company said it shipped some 5.9 million smartphones in the quarter, which is less than what Apple sold in the past weekend in the global launch of its new iPhones.

BlackBerry has said it will cut its workforce by some 40 percent as it seeks to restructure the company.

Colin Gillis at the research firm BCG said the results were “startling weak ” and may signal the end for BlackBerry.

Advertisement. Scroll to continue reading.

“While we applaud the decision to focus on retooling the company into a niche enterprise focused business, it seems years too late,” he said in a note to clients.

“Just as the consumer business has crumbled, the enterprise business is also in decay in our opinion. Given the negative news flow from the company, enterprise customers are likely to shy away from committing to a struggling platform.”

BlackBerry was just a few years ago considered the leader in smartphones, but has rapidly lost ground to Apple and other manufacturers, mainly using the Google Android operating system.

BlackBerry announced this week that it signed a letter of intent with a group led by Fairfax Financial Holdings Limited, which has offered to acquire the company.

Pages: 1 2

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...