Light Reading
The downwards slide continues at the beleaguered smartphone maker, which reported a 64% year-on-year decline in quarterly revenues.

BlackBerry Q4 Sales Sink to Sub-$1B

Ray Le Maistre
3/28/2014
50%
50%

BlackBerry generated revenues of less than US$1 billion in its fiscal fourth quarter ending March 1 and reported a net loss of $423 million (80 cents per share), the company revealed early Friday.

At $976 million, revenues were down by 18% from the previous quarter but down by a shocking 64% compared with the $2.7 billion in revenues generated during the same fiscal quarter a year earlier.

On average, Wall Street had been expecting fourth-quarter revenues of around $1.1 billion.

BlackBerry reported that during the fourth quarter about 3.4 million smartphones were sold to customers, though this included devices that had been shipped prior to the quarter. Of the devices sold, about 2.3 million were BlackBerry 7 handsets.

The last time BlackBerry posted quarterly revenues of less than $1 billion was for the fiscal fourth quarter of 2007.

For the full fiscal year to March 1, BlackBerry reported revenues of $6.8 billion, down 38% compared with the previous year's $11.1 billion. The net loss for the full year was $5.9 billion.

Despite all of this, the company's share price was on the up in pre-market trading as the company's fourth-quarter adjusted loss (before one-time items), at $42 million, or 8 cents per share, was better than expected, as analysts had been expecting an adjusted loss of 55 cents per share. As a result, BlackBerry's stock edged up by 6.5% to $9.63 in pre-market trading, giving the company a market valuation just shy of $5 billion.

CEO John Chen, who took on the role in November 2013, is attempting to save the company by cutting costs and focusing greater resources on the company's enterprise services, which generated 56% of the company's revenues in the fourth quarter, while hardware (handsets) generated just 37% of the total (and 7% for software and other income).

BlackBerry, like Nokia Corp. (NYSE: NOK), failed to adapt as Android devices, built by companies such as smartphone market leader Samsung Corp. , and Apple Inc. (Nasdaq: AAPL)'s iOS phones cornered the market. (See Asia Strengthens Its Grip on Smartphone Market.)

While BlackBerry currently continues to try to revive its fortunes on its own, Nokia's device business is about to be swallowed by Microsoft Corp. (Nasdaq: MSFT). (See Nokia: It's Really Happening, Euronews: Nokia Handsets Sale Delayed and Euronews: Nokia's Handsets Go Out With a Whimper.)

For more on BlackBerry, see:

Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

(14)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 2   >   >>
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
4/8/2014 | 6:47:29 PM
Re: Chen: turnaround man?
Me: "The best it can do at this point is to position the company for a takeover. But what does BlackBerry have that another company would want to buy? Patents?"

nasimon: "IMHO BB still has the best secure enterprise push email. So a company like Microsoft, that want to grab a fair share of devices market, can benefit by acquiring BB & strengthening the enterprise device market. Sure BYOD is a trend but many industries like government, banks, defence, security would take a long time to adopt BYOD - if at all."

Good points. That suggests the mobile email business could be spun out as a separate business, licensed to other companies, or both. 

Mobile email is a feature, not a standalone business. It's something that would make BB a more attractive acquisitions target, but not be the foundation to an independent company. 
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
3/31/2014 | 10:07:36 AM
Re: Chen: turnaround man?
I can not imagine who would want to buy their stock right now, just doesnt seem like it could even be a long shot, just wasting money. 
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
3/31/2014 | 8:55:56 AM
Re: Chen: turnaround man?
With a market value of about five times revenue one wonders why the stock is not in a deep freefall. Especially considering almost a half billion dollar loss, it's going to be pretty iffy if the company can exist on it's current plan which seems to be steadily lookng pretty gloomy. But then again, who can predict the future?
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
3/31/2014 | 1:39:20 AM
Re: Chen: turnaround man?
@R Clark, I think you are right on the money about BYOD, that is going to be the hardest thing for BB to overcome at this point. But BYOD is not the only thing against them, many companies are moving away from BB all together as it no longer serves their needs. Even my old company which had been die hard BB since the start made the switch to Apple last year just as I was leaving. 
R Clark
50%
50%
R Clark,
User Rank: Blogger
3/31/2014 | 12:05:01 AM
Re: Chen: turnaround man?
Yep, they're the world's largest contract electronics manufacturer. Estimates vary but has  somewhere between 750k and 1m employees.
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
3/30/2014 | 11:36:33 PM
Re: Chen: turnaround man?
@ R Clark: Foxconn? Isnt it the same company that manufactures equipment both for Samsung and Apple both? It seems that Foxconn has a monopoly of component manufacturing of smart phones.
R Clark
50%
50%
R Clark,
User Rank: Blogger
3/30/2014 | 11:07:22 PM
Re: Chen: turnaround man?
Enterprise services accounts for most of their revenue and is their best hope, but they're still up against BYOD. On the upside, most of the losses are coming from hardware, and they've just turned over their manufacturing to Foxconn, so they're not completely sunk.They still have 55m subs, mostly enterprise.

 
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
3/30/2014 | 10:03:17 PM
Re: Chen: turnaround man?
Their IP is the only thing I can think holds any value for them at this point. It wasnt that long ago when BlackBerry was the go to smartphone, such a distant memory now. 
Kruz
50%
50%
Kruz,
User Rank: Light Sabre
3/29/2014 | 7:21:14 AM
Re: Chen: turnaround man?
Agreed. But they should have also capitalized on bbm a while ago. It seems just know, bb's ceo has figured out a way to generate revenues out of it.
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
3/28/2014 | 9:04:02 PM
Re: Chen: turnaround man?
> The best it can do at this point is to position the company for a takeover.
> But what does BlackBerry have that another company would want to buy? Patents?

@ Mitch: You raised a very interesting question: the suitability of a takeover and the appeal for it. IMHO BB still has the best secure enterprise push email. So a company like Microsoft, that want to grab a fair share of devices market, can benefit by acquiring BB & strengthening the enterprise device market. Sure BYOD is a trend but many industries like government, banks, defence, security would take a long time to adopt BYOD - if at all.

My two cents.
Page 1 / 2   >   >>
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
Drones Hover Over the IoT Sector
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/23/2014
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Roku Raises $25M, But for What?
Mari Silbey, Independent Technology Editor, 10/23/2014
AT&T: Merger Review Halt Won't Hurt Us
Alan Breznick, Cable/Video Practice Leader, 10/23/2014
Like Us on Facebook
Twitter Feed