BlackBerry posts $423-mn quarterly loss
29 March 2014 5:50 AM IST
Revenue declined 64 per cent to $976 million in December-February from $2.7 billion in the same quarter a year ago, it said in a statement. Revenue fell 18 per cent from $1.2 billion in the third quarter. ‘We have significantly streamlined operations, allowing us to reach our expense reduction target one quarter ahead of schedule,’ said CEO John Chen.
BlackBerry is on a sounder financial footing today with a path to returning to growth and profitability, he added. ‘I am very pleased with our progress and execution in fiscal Q4 against the strategy we laid out three months ago’” said Chen, who took over in November.
Last month, BlackBerry said it would sell most of its real estate holding in Canada to improve operational efficiencies in the face of mounting losses and unsold handset inventory. It also sold its US headquarters at Irving, Texas, to Canadian Brookfield Property Group. The move was seen as a part of broader efforts to conserve cash and fund turnaround efforts amid intense competition from Apple’s iOS and Google’s Android operating system-based smartphones.
The firm sold about 3.4 million smartphones, including shipments made and recognised prior to the fourth quarter, which reduced the company’s inventory in channel, it said. ‘Of the BlackBerry smartphones sold through to end customers in the fourth quarter, approximately 2.3 million were BlackBerry 7 devices,’ the firm added.
Total of cash, cash equivalents, short-term and long-term investments was about $2.7 billion on March 1, from $3.2 billion at the end of the previous quarter. ‘The company anticipates maintaining its strong cash position and continuing to look for opportunities to streamline operations. The company is targeting break even cash flow results by the end of fiscal 2015,’ BlackBerry said.
During the quarter, BlackBerry incurred charges related to its Cost Optimization and Resource Efficiency (CORE) programme of about $148 million pre-tax or USD 105 million after tax. Substantially all of the pre-tax charges were related to one-time employee termination benefits, facilities and manufacturing costs.
It started the CORE programme in 2012 to streamline operations and increase efficiency, including optimising manufacturing, outsource global repair services and reduce its workforce. The firm said it would cut 4,500 positions globally to bring the workforce to about 7,000 full-time people.
BlackBerry is on a sounder financial footing today with a path to returning to growth and profitability, he added. ‘I am very pleased with our progress and execution in fiscal Q4 against the strategy we laid out three months ago’” said Chen, who took over in November.
Last month, BlackBerry said it would sell most of its real estate holding in Canada to improve operational efficiencies in the face of mounting losses and unsold handset inventory. It also sold its US headquarters at Irving, Texas, to Canadian Brookfield Property Group. The move was seen as a part of broader efforts to conserve cash and fund turnaround efforts amid intense competition from Apple’s iOS and Google’s Android operating system-based smartphones.
The firm sold about 3.4 million smartphones, including shipments made and recognised prior to the fourth quarter, which reduced the company’s inventory in channel, it said. ‘Of the BlackBerry smartphones sold through to end customers in the fourth quarter, approximately 2.3 million were BlackBerry 7 devices,’ the firm added.
Total of cash, cash equivalents, short-term and long-term investments was about $2.7 billion on March 1, from $3.2 billion at the end of the previous quarter. ‘The company anticipates maintaining its strong cash position and continuing to look for opportunities to streamline operations. The company is targeting break even cash flow results by the end of fiscal 2015,’ BlackBerry said.
During the quarter, BlackBerry incurred charges related to its Cost Optimization and Resource Efficiency (CORE) programme of about $148 million pre-tax or USD 105 million after tax. Substantially all of the pre-tax charges were related to one-time employee termination benefits, facilities and manufacturing costs.
It started the CORE programme in 2012 to streamline operations and increase efficiency, including optimising manufacturing, outsource global repair services and reduce its workforce. The firm said it would cut 4,500 positions globally to bring the workforce to about 7,000 full-time people.
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