BlackBerry Q1: Recovery, turnaround not going so well

BlackBerry Q1: Recovery, turnaround not going so well

Summary: BlackBerry's recovery hopes are losing promise, after its first-quarter earnings missed analyst expectations by a long shot.

TOPICS: BlackBerry
BlackBerry CEO Thorsten Heins at the launch of BlackBerry 10 in January. (Image: CNET)

BlackBerry's recovery is not looking as good as many had hoped, just six months after launching its next-generation line of BlackBerry 10 smartphones.

The company reported on Friday a first-quarter loss of 16 cents a share on revenue of $3.1 billion. Compared to the same quarter last year, revenue is up from $2.8 billion — a 9 percent increase — but suffered an operating loss of $84 million.

Wall Street was expecting BlackBerry to report 6 cents per share on revenue of $3.36 billion.

The company said it shipped 6.8 million BlackBerry smartphones during the quarter ending June 1, up sequentially 13 percent from the previous quarter, but didn't break out the BlackBerry 10 figures. The firm also shipped 100,000 BlackBerry PlayBook tablets.

BlackBerry ended the quarter with $3.1 billion in cash and investments, a 7 percent increase from the previous quarter.

BlackBerry chief executive Thorsten Heins said the company "continued to focus [its] efforts on the global roll out of the BlackBerry 10 platform." Heins expanded in prepared remarks:

We are still in the early stages of this launch, but already, the BlackBerry 10 platform and BlackBerry Enterprise Service 10 are proving themselves to customers to be very secure, flexible, and dynamic mobile computing solutions. Over the next three quarters, we will be increasing our investments to support the rollout of new products and services, and to demonstrate that BlackBerry has established itself as a leading and vibrant player in next-generation mobile computing solutions for both consumer and enterprise customers.

In the year to date, the company's share price has remained erratic. On Friday, following the earnings report, BlackBerry ($BBRY) was down by more than 19 percent in premarket trading.

Screen Shot 2013-06-28 at 07.24.55
$BBRY in premarket trading following its first-quarter earnings report. (Image: Google Finance)

Looking ahead, the smartphone maker said it expects a bumpy road in the coming quarters. BlackBerry said it expects a loss for the second quarter, as the smartphone market remains "highly competitive."

Topic: BlackBerry

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  • 1 quaterter does not a a comback make

    Give it time, they're still getting product into the queue and people still need to allow for plans to end before getting new phones.
    William Farrel
    • How many of those.. you think are going to discard the investments they've made in their ecosystem of choice to have to reinvest in a company barely able to stay afloat? This is the main challenge Microsoft has is far easier to move from one Android to another or one iPhone to another and not have to repurchase everything you've come to rely on. Until the next big paradigm shift, I think the window of opportunity for a significant 3rd option has been long ago shut. It really has nothing to do with the quality of phones, but the willingness of the market to change when they are already satisfied with what they have.
      • Would you care to divulge how much, on average, poeple have invested in

        their Android or Apple ecosystems.

        Methinks that the amounts that people have invested in an ecosystem, has been overblown.
      • Would you care to divulge how much, on average, poeple have invested in

        Most people might have around $100 invested in the extras in the apps stores, and many will not have purchased more than a handful of applications. Apps are very cheap for the most part.
      • Would you care to divulge how much, on average, poeple have invested in

        Those investments are not something that Android or iOS device owners will miss very much when they move to some other smartphone, especially when the Windows apps store will have most of what people used, and can get them again for the same low prices, if they wished.
      • Would you care to divulge how much, on average, poeple have invested in

        Blackberry and WP8 come with some applications included which are much more valuable and useful, and which are not available with Android or iOS.
      • Would you care to divulge how much, on average, poeple have invested in

        Also, once people have used an app for a while, they either don't use them much or forget them totally, which means that, moving to another OS won't be so much of a concern to most. Angry Birds can only hold people's interest for so long. People get bored or outgrow the silly apps.
      • Would you care to divulge how much, on average, poeple have invested in

        What about the apps stores themselves? People don't need 5 thousand different versions of fart apps or face distortion apps.

        When it comes to usefulness, all of the smartphones are just as good for what most people need to do with them, with some actually being a lot more useful than just as toys.
  • Its over for Blackberry

    Time has already passed them by. Not to say they won't survive for an extended period of time, but they have been permanently relegated to being a niche player. Apple, Google, and Microsoft are really the only serious competitors in the smartphone space now and that's not going to change for the foreseeable future. Blackberry 10 was too little WAY too late.
    • That remains to be seen

      QNX is easily the most advanced mobile operating system there is. Everything else uses macrokernel architectures designed for full PCs.... only QNX was actually designed for real time embedded systems.

      It took Blackberry a long time to ditch their crappy Java based OS and switch to QNX.... maybe too long. But BBX's technical superiority may be enough to keep them in the game, even if they did arrive very late.
      • Oh how wrong you are

        Pocket PC / Windows Mobile / WP7 were built on Windows CE.
        "Windows CE conforms to the definition of a real-time operating system, with a deterministic interrupt latency."
        • And WP8+ is built on Windows 8+ which is also not a macro kernel

          So still wrong there. Not that any smartphone consumer gives a hoot. If it mattered at all it would get BB 0.00001% of the market. Wow.
          Johnny Vegas
          • You are correct

            "Not that any smartphone consumer gives a hoot."

            Ask a million smartphone owners if they would trade their unsophisticated macrokernel powered OS for a real time kernel and if you get more than 1 who answers "yes", I'd be shocked.

            So putting aside that Mac_Lover was wrong about the kernels that power various devices, he / she is also wrong to suggest that the kernel architecture is a determining factor in the success of a product in this market. Based on the success of the iphone, it would seem that the ability to copy from others, to leverage existing monopolies (itunes and itms) and to patent troll are far far more important.
          • Of course technology matters

            Anyone who says it doesn't probably shouldn't be on a technical site. Microkernel architecture allows the vendor to add and subtract, at a very granular level, what a phone can do. Which means you can, without changing the kernel, provide fine tuned device support... meaning a phone with lower specs can outperform a higher spec macrokernel device.

            And nice backtrack on the Windows CE thing, BTW. Maybe you should actually learn about the technology you unswervingly support, before you decide it worthy of aforementioned unswerving support!
          • You were talking about RIM turning things around

            "Of course technology matters"

            The only way you do that is by getting consumers to buy your product. Consumers don't care what architecture kernel is in their phone. That's why it doesn't matter.

            "meaning a phone with lower specs can outperform a higher spec macrokernel device"

            Like WP7. Which used Windows CE.

            "And nice backtrack on the Windows CE thing"

            Backtrack? How did I backtrack. You stated:
            "Everything else uses macrokernel architectures designed for full PCs"

            That is wrong. The fact that it didn't MATTER that you were wrong isn't backtracking.
          • Well except for the fact that it ISN'T wrong

            Windows NT does not qualify as a micro-kernel architecture any more. It did when Dave Cutler first designed it, but Windows 2000 took graphics drivers into the kernel.

            That was probably a good design decision at the time (it allowed for things like Adobe Type Manager, Acrobat, and other intensive graphics apps to run on both the 95 and NT line of OSes), but it did remove NT from the realm of micro kernel OSes. I'm not mistaken about that.
          • Windows NT?

            How many times do I have to write it?

            W I N C E

            I've never claimed Windows NT was a RTOS nor have I ever said you were wrong about Windows NT. THIS is what I replied about:
            "Everything else uses macrokernel architectures designed for full PCs.... only QNX was actually designed for real time embedded systems."

            Windows CE, the OS that powers Pocket PC, Windows Mobile, and WP7, was designed for real time embedded systems. Your statement was WRONG. That is what I corrected.
          • Windows NT is not a RTOS

            And hasn't qualified as a microkernel since Windows 2000, when graphics were moved into the kernel.
          • Mac_PC_FenceSitter

            No one ever said NT... Pull your head out.
      • QNX ~ 25-YEAR old RTOS! [ Users= OnStar, BMW, Benz, Porsche]

        QNX ~ 25-YEAR old RTOS! [Ad in BYTE ~1987]
        Users= BMW's softw ~Benz's ~Porshe's, GM OnStar, BB 10, etc:

        iPhoney & Andhemorrhoid are buggy ~6 yr-olds.
        Love my Moto Photon 4G side-slide KEY hdw. !!
        I hate buggy patchwork Andhemorrhoid 4.1.2. XX
        Eg, Clipboard does NOT reliably work even after buying ClippIt.

        Carl, Columbus OH