BlackBerry reports second quarter earnings that revealed major financial losses for the beleaguered company. A $935 million loss due to the Z10 was especially damaging to BlackBerry as its Q2 Report showed so clearly.
When BlackBerry took inventory of its Z10 in its second quarterly report for the year, it found a colossal loss amounting to at least $935 million. The hand sets simply didn’t sell that well. And BlackBerry was left high and dry.
BlackBerry reports $1.6 billion revenues for the second quarter of fiscal year 2014. These revenues are 49% down from $3.1 billion in the previous quarter and down 45% from $2.9 billion in the same quarter of fiscal 2013. GAAP loss is reported $965 million or $1.84 per share.
In a fashion similar to Microsoft’s RT Surface fiasco, BlackBerry’s blunder of the season cost it a major chunk of its incoming revenue of $1.6 billion. This staggering blow has literally left the company reeling in confusion.
Furthermore, the downsizing that the company undertook has added to the losses so that they amount to $965 million. The exact sales figures for the Z10 and Q10 have not been calculated. The company is looking elsewhere for its profits now. In fact, it just might be time to wrap things up and put the firm for sale on the auctioneer’s block.
It is all dreary news for BlackBerry. There was a time when it was king of the block. Nothing could stop its rise to worldwide fame. Yet recent times have not been very forgiving to the floundering company. The new models of handsets by BlackBerry have not clicked with the customers.
The company seems not to have kept up with the latest trends. In a world with an audience whose appetites are growing everyday for exciting features on mobile devices, BlackBerry has grandly failed in its endeavors. It will need a miracle to bring it back to the topmost position again.
Thorsten Heins, President and CEO of BlackBerry, 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 now 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 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."