BlackBerry Q3 worse than expected; $4.4 billion loss

Summary:The company's massive losses are mostly attributed to restructuring, a write-down, and other one-time charges. But the jewel in Canada's technology crown isn't dead yet.

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Image: CNET

BlackBerry's fiscal third-quarter results landed worse than first thought, putting even further pressure on new chief executive John Chen to turn the company around.

The smartphone company reported a loss of $0.67 cents per share on revenue of $1.2 billion, down from $1.6 billion in the previous quarter.

Wall Street was expecting a loss of -$0.44 cents per share on revenue of $1.59 billion — a steep decline from BlackBerry's loss of $0.22 cents per share on the same quarter a year ago.

But including a massive inventory write-down and other one-time charges, the company's third quarter loss totaled $4.4 billion, or -$8.37 per share.

The company's cash pile stands at $3.2 billion, up from the second quarter where it was $2.6 billion. Its cash reserves is one of the last things the company has under its financial belt.

During the quarter BlackBerry sold 1.9 million smartphones, down from 3.7 million during the same quarter a year earlier. Most were older BlackBerry 7 devices, the company said. Down on its luck, but far from out, BlackBerry announced a new strategic agreement with Foxconn to develop new consumer devices for Indonesia and other high-population markets in early 2014.

"Partnering with Foxconn allows BlackBerry to focus on what we do best - iconic design, world-class security, software development and enterprise mobility management — while simultaneously addressing fast-growing markets leveraging Foxconn's scale and efficiency that will allow us to compete more effectively," Chen said in prepared remarks.

Also, BlackBerry's enterprise unit is faring relatively well, with more than 30,000 commercial and test servers installed to date, up from 25,000 in September. 

According to the company, it has more than 80,000 separate customers running its government-grade security enterprise back-end services.

 

Topics: Smartphones, BlackBerry

About

Zack Whittaker writes for ZDNet, CNET, and CBS News. He is based in New York City.

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