BlackBerry confirms abysmal second quarter results

BlackBerry executives cancelled a conference call to discuss the results following the acquisition bid from Fairfax Financial Holdings

BlackBerry confirmed on Friday its US$965 million net operating loss in the second quarter, following low interest in the Z10 smartphone.

Revenue for the company's second quarter, which ended on Aug. 31, was approximately $1.6 billion, down 45 percent from the same period a year earlier. Both the operating loss and the revenue were in line with preliminary results released last week.

The last week has been a busy one for BlackBerry CEO Thorsten Heins and his colleagues. In addition to the bombshell of its preliminary results, the company also announced around 4,500 lay-offs and cuts to the number of phone models it sells from six to four: two high-end and two entry-level phones aimed at the enterprise and "prosumer" market. Then on Monday it revealed it was preparing to sell the company to Fairfax Financial Holdings.

Although Blackberry has confirmed the financial results, "There is still a great degree of uncertainty," said analyst Geoff Blaber, director of devices and platforms at CCS Insight. "There is still an awful lot to happen following the Fairfax offer. The biggest element of uncertainty is what the new private company will become. My bet is it will be an enterprise service company, and devices are unlikely to be a part of that."

Originally, the company had scheduled a webcast and conference call with management on Friday to discuss the results, but those events were cancelled on Wednesday following the deal with Fairfax. However, BlackBerry plans to publish consolidated financial statements and a management discussion and analysis of results for its second quarter next week.

The postponement highlights the uncertainty surrounding the bid from Fairfax, Blaber said. "On an earnings call BlackBerry would expect to field a large number of questions on exactly that, and at the moment it can't answer them."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags mobilesmartphonesMergers and acquisitionsBlackberrybusiness issuesfinancial resultsconsumer electronicslayoffsMobile OSesBlackBerry OS

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?