December 20, 2013 - 17:14 AMT
PanARMENIAN.Net - BlackBerry Ltd. reported Friday, Dec 20, a staggering $4.4-billion net loss from continuing operations in its latest quarter as the company recorded a number of items related to its restructuring efforts, according to CTV News.
Many of the items were of a non-cash nature and the company managed to increase its cash holdings to $3.2 billion at the end of November, which marked the end of BlackBerry's third quarter. But BlackBerry's operational performance during the quarter was well below expectations and a huge drop from the same time last year.
Revenue for the three-months ended Nov 30 was $1.2 billion, down 56 per cent in the same quarter last year and $400 million lower than analyst estimates compiled by Thomson Reuters.
BlackBerry's adjusted loss from continuing operations, which excludes restructuring and other items, was $354 million, or 67 cents per share -- 23 cents below analyst estimates. In pre-market trade, BlackBerry's battered shares fell 45 cents or 7.2 per cent to $5.80 after the earnings report.
A year earlier, BlackBerry's had a small profit of $14 million of three cents per share under standard accounting and $2.7 billion of revenue.
Analysts expected BlackBerry adjusted loss would be 44 cents per share and its revenue would be about $1.6 billion.
It's the first financial report from BlackBerry since John Chen became chairman and interim chief executive of the struggling Canadian smartphone company.
Since Chen joined BlackBerry last month, replacing BlackBerry CEO Thorsten Heins, he has started a dramatic overhaul of its executive ranks and begun fresh efforts to turn around the company.
The company announced separately Friday that it is forming a five-year strategic partnership with Foxconn, a Chinese manufacturing company that will make products for BlackBerry in Mexico and Indonesia.
"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," Chen said in a statement.
He said parts of BlackBerry's business, including its enterprise services for organizations and its messaging products, are in good shape. He said the most immediate challenge is to improve its devices operations.
"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," Chen said. "However, the company is financially strong, has a broad and trusted product portfolio to work with, a talented employee base and a new leadership team dedicated to implementing our new roadmap."
Chen says the partnership with Foxconn demonstrates BlackBerry's commitment to making devices over the long term.
There has been speculation that BlackBerry could get out of the device business in light of intense competition from Apple, Samsung and other smartphone makers.
For many people, Foxconn is best known as one of Apple's main suppliers.
"BlackBerry is an iconic brand with great technology and a loyal international fan base," said Terry Gou, Foxconn's founder and chairman. "We are pleased to be working with BlackBerry as it positions itself for future growth and we look forward to a successful strategic partnership in which Foxconn will jointly develop and manufacture new BlackBerry devices in both Indonesia and Mexico for new and existing markets."