BlackBerry reports quarterly revenues down 45% and net loss of US$965 million

BlackBerry has reported quarterly figures for the three months to the end of August that were down by 45 per cent from a year ago at US$1.6 billion. As predicted last week, the net loss from continuing operations for the quarter was $965 million, as compared to a loss of $229 million a year ago.

During the second quarter the company recognised hardware revenue on approximately 3.7 million BlackBerry smartphones. Most of the units recognised are BlackBerry 7 devices, in part because certain BlackBerry 10 devices that were shipped in the second quarter of fiscal 2014 will not be recognised until those devices are sold through to end customers.

That the company is not recognising the revenues on unsold devices have raised concerns about the company’s confidence that those devices will in fact be sold. Although the volumes are such that they almost certainly would be sold, the lack of confidence is stark.

During the quarter, approximately 5.9 million BlackBerry smartphones were sold through to end customers, which included shipments made prior to the second quarter and which reduced the company’s inventory in the channel.

"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, president and CEO of BlackBerry.

The total of cash, cash equivalents, short-term and long-term investments was US$2.6 billion as of August 31, 2013, compared to US$3.1 billion at the end of the previous quarter.

The company is now in the process of discussing going private in a deal that would see it bought by a consortium of private equity investors.