Light Reading

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        ADD A COMMENT
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
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
LRTV Custom TV
DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

4|29|15   |   03:48   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
LRTV Huawei Video Resource Center
Predicting Traffic Patterns for Quality Mobile Broadband

4|29|15   |   6:45   |   (0) comments


Accessing information ubiquitously creates complexity and creates heavy traffic onto the network, especially at large-scale events like sporting events or festivals. In this video, Huawei's Mohammad Hussain speaks to experts about how to predict traffic and improve user experience during periods of heavy traffic.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Network functions virtualization (NFV) is not the easiest of topics to take on board, so here's a Light Reading infographic, developed following conversations with the folks at HP, that helps make sense of where NFV is taking the industry.
Hot Topics
10 Alternate Uses for Tablets
Eryn Leavens, Copy Desk Editor, 5/22/2015
Verizon Saves 60% Swapping Copper for Fiber
Sarah Thomas, Editorial Operations Director, 5/19/2015
Choosing a Technology Supplier? Consider Changing Your Selection Criteria
Steve Saunders, CEO and founder, Light Reading, 5/18/2015
Bidding War for TWC Looks Likelier
Alan Breznick, Cable/Video Practice Leader, 5/22/2015
Chattanooga Charts Killer Gigabit Apps
Mari Silbey, Senior Editor, Cable/Video, 5/20/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
My ongoing interview tour of the leading minds of the telecom industry recently took me to Richardson, Texas, where I met with Rod Naphan, CTO and SVP, Solutions, ...
I recently popped down to Texas to chat with CEO Eric L. Pratt about his company, Taqua.
Cats with Phones