Troubled smartphone maker, BlackBerry has posted its Fiscal Q3 2014 results that reports, once again a huge $4.4 billion loss for the company, while it signed an agreement with Foxconn to build budget smartphones to release in growing markets such as Indonesia.
BlackBerry reported $1.2 billion as Q3 revenue, which is 60 percent lower than last year’s Q3 revenue of $2.7 billion and its current adjusted losses from continuing operation is $354 million or 67 cents/share. It sold 4.3 million smartphones in the quarter, where the older BlackBerry 7 OS-based smartphones were in majority.
Recently, the company transited to new leadership by relieving Thorsten Heins and electing John Chen as new CEO and this is the first quarterly result reporting under his leadership. The transition of BlackBerry follows a decision to back off a sale of BB in favor of a $1 billion investment from Fairfax Financials, which showed interest in buying BlackBerry for $4.7 billion. CEO, John Chen said in the statement,
“We have accomplished a lot in the past 45 days, but still have significant work ahead of us as we target improved financial performance next year.”
In pre-market trading, BlackBerry shares plunged 7 percent and later it surged back to up 3.3 percent.
BlackBerry’s downfall began, when the consumer reacted negatively to the BlackBerry 10 OS’ adapting and the Z10, Q10 as well as Z30 smartphones and those software along with the smartphones not impacted the market dominated by Google’s Android phones in Samsung and Apple iPhones. Even, the Microsoft Windows Phone mobile operating system surpassed BlackBerry OS as the third-largest mobile platform, earlier in 2013.
BlackBerry also announced that it already tied-up with a 5-year agreement with Foxconn, who helps Apple to produce some of its devices, to start manufacturing affordable mid-range smartphones. These devices will be released in 2nd quarter of next year in Asia and other growing markets.
However, the company still seems to be work on the hardware parts along with the focus on enterprise services and BBM messaging service. Not to forget, BBM messenger saw Android and iOS release in October and saw 10 million downloads in 24 hours (no one know the current active users’ numbers!).
[Source: press release, Fiscal Q3 2014 report(pdf)]