The company only raked in $1.6 billion in revenue for the fiscal quarter

BlackBerry keeps slipping further and further into the dark abyss that is the end of its life, and its second-quarter earnings further prove that point. 

For fiscal Q2 2014, BlackBerry reported only $1.6 billion in revenue, which represents a $2.9 billion drop from the year-ago quarter. Analysts expected nearly twice that amount before receiving a warning just last week.

The company had a Q2 net loss of $965 million, or $1.84 a share. It had predicted a loss of $950 million to $995 million prior to the earnings release. Overall, BlackBerry lost $248 million, or 47 cents a share (analysts forecast a loss of 49 cents a share). 

This leaves the Waterloo, Ontario-based company's cash pile at $2.6 billion at the end of the quarter, which is down from $3.1 billion.

To make matters worse, BlackBerry said it sold 5.9 million smartphones, but only recorded revenue on 3.7 million. Many were older BlackBerry devices. 

BlackBerry reported a total GAAP loss of $965 million from continuing operations, which was due to a writedown of nearly $1 billion thanks to unsold Z10 smartphones. The Z10 was released as BlackBerry's first flagship device in the BlackBerry 10 (BB10) line earlier this year. 

BlackBerry CEO Thorsten Heins wasn't pleased with the financial results of his company.

Blackberry Z10

"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 Heins.

"While our company goes through the necessary changes to create the best business model for our hardware business, we continue to see confidence from our customers through the increasing penetration of BES 10, where we now have more than 25,000 commercial and test servers installed to date, up from 19,000 in July 2013. We understand how some of the activities we are going through create uncertainty, but we remain a financially strong company with $2.6 billion in cash and no debt. We are focused on our targeted markets, and are committed to completing our transition quickly in order to establish a more focused and efficient company."

It's no secret that BlackBerry has been struggling. The company was once a big player in mobile, but has hit rock bottom after failing to compete with Apple's iOS and Google's Android. In 2011, BlackBerry had 14 percent of the U.S. smartphone market, and now, it has less than 3 percent.

Earlier this week, BlackBerry signed a letter of intent agreeing to a sale of the company valued at $4.7 billion to a consortium led by its largest shareholder -- Fairfax Financial Holdings Ltd., which owns 10 percent of BlackBerry. This deal, which would be completed November 4 after a due diligence period, would ensure that BlackBerry goes private. Additionally, each shareholder would receive $9 per share in cash.   

BlackBerry employees are feeling the heat, too. The company said it will cut 4,500 jobs (as of March, BlackBerry had 12,700 employees).  

Source: Market Wired

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