BlackBerry losses hit £599m in Q2 as revenues plummet

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President and CEO Thorsten Heins has said the results are “very disappointing” and that the company will be making some “major changes”

BlackBerry has reported a quarterly loss of $965 million (£599 million), which president and CEO Thorsten Heins has called “very disappointing”.

The Canadian manufacturer said revenue for the three months to August 31 was approximately $1.6 billion (£1 billion), down 49 per cent from $3.1 billion (£1.9 billion) in the previous quarter and down 45 per cent from $2.9 billion (£1.8 billion) from the same period last year.

Hardware accounted for almost half (49 per cent) of revenue while services accounted for 46 per cent of takings and five per cent for software and other revenue.

The company saw revenue on approximately 3.7 million smartphones, although it said most of these were running on BlackBerry 7 and not the latest version of its operating system, BlackBerry 10.

During the quarter, approximately 5.9 million BlackBerry devices were sold – including units shipped in the previous quarter, clearing some inventory.

The news comes a week after BlackBerry released its preliminary results (see here) and announced it would be “refocusing” on the enterprise market, reducing its handset from six to four devices and cutting 4,500 jobs.

On Monday (September 23) the company accepted an offer to be bought by shareholder and Canadian financial holdings company Fairfax for £3 billion (see here).

BlackBerry president and CEO 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 not 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 (£1.6 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.”

 

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