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:
- BlackBerry's Chen Lashes Out at T-Mobile Offer
- BlackBerry Shakes Up Its C-Level
- Time to Flip BlackBerry's Handset Kill Switch
- BlackBerry Gets $1B to Drop Sale Search, CEO Resigns
— Ray Le Maistre, , Editor-in-Chief, Light Reading