Blackberry Reports Q3 Loss of US$4.4 Billion
Blackberry has just reported a Q3 operating loss of a staggering US$4.4 billion. The huge loss, the company said, is primarily due to one-time charges related to unsold smartphones and a decline in company's assets.
Sales Blackberry's new Blackberry 10 devices are not good and attributed to over a quarter of Blackberry's loss for Q3. Over 4.3 million Blackberry phones were sold in Q3, but 3.2 million of them were older Blackberry 7 devices.
Blackberry made a profit of US$14 million in the same quarter last year, and only reported a loss of US$965 million in the last quarter.
Despite the bad results, CEO John Chen was upbeat and said:
“With the operational and organizational changes we have announced, BlackBerry has established a clear roadmap that will allow it to target a return to improved financial performance in the coming year. While our Enterprise Services, Messaging and QNX Embedded businesses are already well-positioned to compete in their markets, the most immediate challenge for the Company is how to transition the Devices operations to a more profitable business model.”
In the months ahead, Blackberry will continue to cut operating costs and has just inked a 5-year deal with Foxconn manufacture and co-design future Blackberry devices and also manage inventory on these devices, reducing Blackberry's risk of unsold product.
Source: Ars Technica