BlackBerry Reports Sub-$1B Quarterly Revenue for Q4, Brings Back BlackBerry Bold Smartphone
March 28, 2014 2:16 PM
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This is the first time BlackBerry has had less than $1 billion in quarterly revenue since 2007.
BlackBerry is in the midst of an eight-quarter turnaround that doesn't expect to see company profitability again until 2016, so the fact that the fourth quarter earnings report shows
and slashed revenues probably isn't too surprising. But what may surprise you is BlackBerry CEO John Chen's new device strategy for a BB comeback.
BlackBerry reported revenues of $976 million in
, which was down 64 percent from the $2.7 billion it reported in the year-ago quarter. This is also the first time BlackBerry has had less than $1 billion in quarterly revenue since 2007.
BlackBerry's loss was $42 million for the quarter, which was down from the $94 million it earned a year previous. BlackBerry still has about $2.7 billion in the bank, but that's down $500 million from what it had last quarter.
To top it off, BlackBerry only sold 3.4 million smartphones for the holiday quarter, and 2.3 million of them were running older BlackBerry operating systems -- not the new BlackBerry 10 OS.
One highlight is that operating expenses are down 51 percent compared to the year-ago quarter.
"I am very pleased with our progress and execution in fiscal Q4 against the strategy we laid out three months ago. We have significantly streamlined operations, allowing us to reach our expense reduction target one quarter ahead of schedule," said Chen. "BlackBerry is on sounder financial footing today with a path to returning to growth and profitability."
Oh hey, remember us? [SOURCE: CrackBerry]
While Chen seems optimistic about the future of BlackBerry, he's looking to the past for answers. More specifically, Chen's next big move in the realm of BlackBerry devices is to relaunch the
, which is a smartphone the company previously released in 2011.
"Our customers still love the BB OS device, particularly BB7 devices," said Chen. "We’ll continue to make these devices available and support the operating system as long as there is customer demand."
The re-release of the Bold is part of Chen's focus on great keyboards and messaging features. However, the Bold wasn't so great with Web browsing and taking pictures -- which are two incredibly popular features of today's smartphones.
It's not clear where Bold will be sold exactly, but Chen added that a new manufacturing partner will make it so the antiquated phone will be sold at a profit.
Aside from bringing back old faces, Chen said there are three new smartphone designs in the making, which feature keyboards and will be introduced over the next 18 months. The BlackBerry Classic will make its way to market in Q4 2014.
BlackBerry has been plagued with troubles ever since Google's Android and Apple products have taken over the consumer market (and the 2011 outage that affected BlackBerry customers around the world didn't help, either). BlackBerry has since not only been pushed out of consumer competition, but also got the boot from many government agencies and corporate offices, which were areas that BlackBerry traditionally held down.
BlackBerry is still present in some important places, though, such as the White House. However, it was recently reported that President Barack Obama might
give up his BlackBerry
if testing with Android devices goes well.
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RE: Not to worry.
3/29/2014 3:19:30 AM
Ouch. Their share price is 8.41 and their earnings per share is -10.19. Getting rid of 4500 people is like canning 1/3 of their employees. I wonder if Pirks made it though?
Their stock is only worth about 3.5% of its value in mid 2007.
I've seen this movie and I know how it ends.
RE: Not to worry.
3/29/2014 11:19:36 AM
Have they set a date for the Patent sale? I give it less than 2 years.
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