This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-24302139
The article has changed 4 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Blackberry reports $965m second quarter loss | Blackberry reports $965m second quarter loss |
(about 1 hour later) | |
Blackberry has reported a second quarter net loss of $965m (£600m) following a slump in sales. | Blackberry has reported a second quarter net loss of $965m (£600m) following a slump in sales. |
The company warned investors last week that it would report a loss of up to a billion dollars, due to poor sales of its new smartphones. | The company warned investors last week that it would report a loss of up to a billion dollars, due to poor sales of its new smartphones. |
It also announced 4,500 job cuts in a bid to stem those losses. | It also announced 4,500 job cuts in a bid to stem those losses. |
Earlier this week Blackberry agreed to be bought by a consortium led by Fairfax Financial, its biggest shareholder, for $4.7bn (£3bn). | Earlier this week Blackberry agreed to be bought by a consortium led by Fairfax Financial, its biggest shareholder, for $4.7bn (£3bn). |
Blackberry said it would continue to explore other options while negotiations with Fairfax continued. | Blackberry said it would continue to explore other options while negotiations with Fairfax continued. |
The company's financial problems came to a head this year following disappointing sales of its new Z10 smartphone. | The company's financial problems came to a head this year following disappointing sales of its new Z10 smartphone. |
Sales were so poor that Blackberry had to write off $934m in the second quarter to account for the weakness. | Sales were so poor that Blackberry had to write off $934m in the second quarter to account for the weakness. |
Disappointment | Disappointment |
Released in January - after many delays - the phone has failed to enthuse consumers. | Released in January - after many delays - the phone has failed to enthuse consumers. |
The firm reported total sales of $1.6bn compared with $3.1bn in the same quarter of 2012, a near 50% fall. | The firm reported total sales of $1.6bn compared with $3.1bn in the same quarter of 2012, a near 50% fall. |
"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," said Thorsten Heins, Blackberry's chief executive. | "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," said Thorsten Heins, Blackberry's chief executive. |
In the second quarter, Blackberry said it sold 3.7 million Blackberry smartphones. That compares with 7.4 million shipments in the same period of 2012. | In the second quarter, Blackberry said it sold 3.7 million Blackberry smartphones. That compares with 7.4 million shipments in the same period of 2012. |
To put that into perspective, Apple sold nine million of its new iPhone 5S and 5C models on the opening weekend of sales. | To put that into perspective, Apple sold nine million of its new iPhone 5S and 5C models on the opening weekend of sales. |
Decay | |
In a research note, Colin Gillis from the brokers BGC, said the results were "startling weak". | |
He said the company's plan to focus on corporate customer, might fail. | |
"While we applaud the decision to focus on retooling the company into a niche enterprise focused business, it seems years too late. | |
"Just as the consumer business has crumbled, the enterprise business is also in decay in our opinion. | |
"Given the negative news flow from the company, enterprise customers are likely to shy away from committing to a struggling platform," Mr Gillis said. |