Sunday , 16 June 2019
Breaking News
BlackBerry loses £127 million in second quarter results

BlackBerry loses £127 million in second quarter results

BlackBerry loses £127 million in second quarter results

Manufacturer sells just 2.4 million handsets in previous three months but is on course to break even by year-end

BlackBerry’s financial woes continued with the firm losing £126.9 million ($207 million) in its Q2 2015 results, for the three months ending August 30.

The losses saw red ink return to BlackBerry’s Q2 2015 financials after it made a profit of £14.1 million($23 million) in the previous quarter. This compared with a loss of £259.4 million ($423 million) between December 2013 and February 2014.

Revenues were also down at £561.7 million ($916 million), a fall of £30.7 million ($50 million) from the previous quarter, and a huge fall from the same period last year when it took in £962 million ($1.57 billion).

In the week that saw it launch its latest handset, the BlackBerry Passport, it also reported that smartphone sales continued to slide. It sold just 2.4 million handsets, down from 2.6 million the previous quarter.

Its income was derived of equal revenues from its hardware and services’ business (46 per cent each) and software on other revenue (8 per cent).

Long-term debt was also reduced by £73.6 million ($120 million) over the past six months to £920 million ($1.5 billion).

In the quarter, the firm also completed its three-year restructuring plan which saw it reduce its headcount by 60 per cent over the period. It shed 10,500 jobs over that period to reduce staff numbers to their current level of 7,000. The firm spent £20.2 million ($33 million) on restructuring charges over the quarter.

Chief executive officer John Chen says the firm is now on course to breakeven by the end of its current financial

“We delivered a solid quarter against our key operational metrics, and we are confident that we will achieve breakeven cash flow by the end of FY15,” said John Chen, Executive Chairman and CEO, BlackBerry. “Our workforce restructuring is now complete, and we are focusing on revenue growth with judicious investments to further our leadership position in enterprise mobility and security, driving us towards non-GAAP profitability during FY16”

The firm also announced that it now has 91 million active BBM users, an increase of six million from the previous quarter.

Article Source

Share and Enjoy

Leave a Reply

Your email address will not be published. Required fields are marked *