Massive loss due to inventory write down, restructuring, legal and financial advisory charges as revenue and sales continue to slide
BlackBerry’s Q3 losses more than quadrupled to $4.4 billion compared to the previous quarter, with revenue also down by a quarter.
The manufacturer today reported its financial results for the three months ended November 30, which showed losses had risen significantly from the £965 million figure reported in Q2. BlackBerry said this was due to an inventory write-down, restructuring, legal and financial advisory charges. charges.
Revenue fell by almost a quarter (24 per cent) to $1.2 billion from the previous quarter, and down by 56 per cent from $2.7 billion in the same quarter last year.
The manufacturer sold 4.3 million smartphones to end customers. Of this number, only 1.1 million were BlackBerry 10 smartphones, with the remainder BlackBerry 7 devices.
Operating expenses more than trebled sequentially and year-on-year to $3.76 billion. BlackBerry said that for Q4, it anticipates reducing operating expenses and maintaining a strong cash position.
BlackBerry executive chairman and CEO John Chen said: “With the operational and organisational charges 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 new leadership team dedicated to implementing our new roadmap.”