BlackBerry Reports Q2 Loss Of US$965 Million; Revenue Plunged 49%
This figure becomes the worst quarterly result of Canadian firm. Their sales only reached the 3.7 million units
The poor results of sales of the new BlackBerry phones caused the Canadian company lost US$965 million in the second quarter of fiscal year 2014, today announced the manufacturer.
The loss of nearly US$1,000 million is the worst quarterly result of the company that is considered as the inventor of the smart phones that now dominate the market.
But if the BlackBerry, formerly known as Research In Motion (RIM), start the fashion of the smartphones, the Canadian company has lost the race to attract users to the thrust of the Apple iPhone and phones with the Android operating system of Google.
BlackBerry said today that virtually all of their quarterly losses was due to the fact that millions of units of phones with the new operating system BB10 were unsold in stores all over the world, or were sold at discount prices to reduce inventories.
In the quarter ended August 31, BlackBerry sold 3.7 million phones. In comparison, Samsung sold a month 10 million units of its latest model of the Galaxy family and Apple came to the 9 million iPhone 5 on the first weekend of sales.
The result of bad sales has been that the revenues in the second quarter fell 45 %, to US$1,573 million, compared with the same quarter the previous year and 49% as compared to the first quarter of the fiscal year 2014.
By region, BlackBerry income US$686 million in Europe, Middle East and Africa, US$414 million in North America, US$277 million in the Asia Pacific and US$192 million in Latin America.
The president of BlackBerry, Thorsten Heins, expressed his disappointment with the results through a statement, after canceling at the last minute the telephone conference that was scheduled today with analysts and media to explain the results of the company.
“We are very unhappy with the operational and financial results this quarter and i have announced a series of major changes to respond to the competitive environment of hardware and our cost structure,” Heins said in the statement that announced the quarterly results.
Heins was made with the BlackBerry address in January 2012 after the departure of its co-founders, Mike Lazaridis and Jim Balsillie, and when the manufacturer was in a sharp decline after years of mistakes, as the delay of the launch of new models, and bad news, such as outages massive of their services.
If in 2008 BlackBerry controlled 46% of the smart phone market in the United States, by 2012 the figure had been reduced to 2 %. The value of the signing followed a similar path. Only in 2011, the BlackBerry actions lost 75% of its value.
After taking the helm of BlackBerry, Heins said that new models and the BlackBerry operating system 10 (BB10) that the company was being finalized, to save the company that has its headquarters in the town of Waterloo, in the vicinity of Toronto.
But the reality is that, as many analysts had expected, the launch of the Z10 and Q10 and the BB10 system may have come too late for the BlackBerry.
However, the Director stressed that despite the setback in the quarterly results, the company “is financially strong” to be in possession of US$2,600 million in cash and no debt.
BlackBerry wants to preserve the maximum cash box that has in the last week and has already announced that bid farewell to 4,500 employees, more than a third of its workforce, to reduce 50% of their operating expenses by the end of the first quarter of fiscal year 2015.
The Canadian company also announced that its majority shareholder, the investment fund Fairfax Financial Holdings, offered to buy the company for US$4,700 million to provide US$9 for each action that BlackBerry does not possess.
Today analysts also stressed that, despite the enormous losses, Heins will win more than US$55 million if Fairfax purchase BlackBerry.