BlackBerry makes loss of $4.4bn in Q3 as revenues and sales slide


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.”