BlackBerry announces preliminary Q2 2014 results

By Adam Zeis on 20 Sep 2013 03:21 pm EDT

BlackBerry has released their preliminary Q2 2014 results today. While the earnings call will be held next Friday, the preliminary report states that the company expects a loss of between $950 million to $995 million while their revenue for Q2 was approximately $1.6 billion.

Also noted is that they expect to lose around 4,500 full-time employees as part of their "operational restructuring". They will also be cutting down on device offerings and ultimately have a portfolio of only 4 devices. The Z10 will be "re-tiered" to focus on a much broader, entry-level audience. 

Press Release

WATERLOO, ONTARIO--(Marketwired - September 20, 2013) - BlackBerry Limited (NASDAQ: BBRY)(TSX: BB) -

  • Company expects GAAP net operating loss of approximately $950 million to $995 million; loss includes a primarily non-cash, pre-tax inventory charge of approximately $930 million to $960 million resulting from the increasingly competitive business environment impacting BlackBerry smartphone volumes, and a pre-tax restructuring charge of $72 million
  • Company expects to report revenue for the second quarter of approximately $1.6 billion; recognizes sales of approximately 3.7 million smartphones in the second quarter
  • Company to refocus on enterprise and prosumer market, offering end-to-end solutions, including hardware, software and services
  • Future smartphone portfolio will transition from 6 devices to 4; focusing on enterprise and prosumer-centric devices, including 2 high-end devices and 2 entry-level devices
  • Company announces restructuring plans, including reduction of approximately 4,500 employees; targets reduction of its operating expenditures by approximately 50% by end of Q1 Fiscal 2015
  • Company sees increasing penetration of BlackBerry Enterprise Service 10 (BES 10) with more than 25,000 commercial and test servers installed to date, up from 19,000 in July 2013
  • Special Committee of the Board continues to evaluate strategic alternatives

BlackBerry Limited, a world leader in the mobile communications market, today announced certain preliminary financial results for the three months ended August 31, 2013 and provided an update on business operations.

Preliminary Second Quarter Fiscal 2014 Results

The Company currently expects to report revenue for the second quarter of approximately $1.6 billion, of which approximately 50% is expected to be service revenue. For the second quarter, the Company expects to recognize hardware revenue on approximately 3.7 million BlackBerry smartphones. Most of the units recognized are BlackBerry 7 devices, in part because certain BlackBerry 10 devices that were shipped in the quarter will not be recognized until those devices are sold through to end customers. During the second quarter, approximately 5.9 million BlackBerry smartphones were sold through to end customers, which included shipments made prior to the second quarter and which reduced the Company's inventory in channel.

As a consequence of the more intense competition the Company is experiencing in its hardware business, it expects to report a primarily non-cash, pre-tax charge against inventory and supply commitments in the second quarter of approximately $930 million to $960 million, which is primarily attributable to BlackBerry Z10 devices.

The current quarter will also include a pre-tax restructuring charge in the approximate amount of $72 million reflecting ongoing cost efficiency initiatives.

As previously disclosed, the Company anticipated generating an operating loss in the second quarter. The Company currently expects that its adjusted net loss, before giving effect to the inventory and restructuring provisions referred to above, will be in a range of approximately $250 million to $265 million, or $0.47 to $0.51 per diluted share. Including the inventory and restructuring provisions, the GAAP net loss is expected to be approximately $950 million to $995 million, or $1.81 to $1.90 per share. Adjusted gross margin is expected to be approximately 35-37 percent.

At the end of the second quarter, total cash, cash equivalents and investments is estimated to be approximately $2.6 billion. The Company has no debt.

The preliminary, unaudited information provided above is based on the Company's current estimate of results from operations for the second quarter of Fiscal 2014 and remains subject to change based on the Company's ongoing review of results, the subsequent occurrence or identification of events prior to closing of the review and any further adjustments made in connection with closing and review procedures. All figures in this release are in U.S. dollars and U.S. GAAP, except where otherwise indicated.

Operational Restructuring Designed to Enhance Financial Results

As part of the Company's focus on enhancing its financial results, and in response to the increasing competition in the smartphone market, BlackBerry also announced plans to transition its future smartphone portfolio from six devices to four. The portfolio will focus on enterprise and prosumer-centric targeted devices, including 2 high-end devices and 2 entry-level devices in all-touch and QWERTY models. With the launch of the BlackBerry Z30 - the next generation high-tier smartphone built on the BlackBerry 10 platform -- this week, the Company will re-tier the BlackBerry Z10 smartphone to make it available to a broader, entry-level audience. At the same time, the Special Committee of the Company's Board of Directors continues to evaluate all strategic alternatives for the Company.

Furthermore, the Company also announced that it is targeting an approximate 50% reduction in operating expenditures by the end of the first quarter of Fiscal 2015. As part of this, BlackBerry will implement a workforce reduction of approximately 4,500 positions or approximately 40% of the Company's global workforce resulting in a total workforce of approximately 7,000 full-time global employees.

Thorsten Heins, President and Chief Executive Officer of BlackBerry said, "We are implementing the difficult, but necessary operational changes announced today to address our position in a maturing and more competitive industry, and to drive the company toward profitability. Going forward, we plan to refocus our offering on our end-to-end solution of hardware, software and services for enterprises and the productive, professional end user. This puts us squarely on target with the customers that helped build BlackBerry into the leading brand today for enterprise security, manageability and reliability."

The Company continues to see increasing penetration of BES 10 with more than 25,000 commercial and test servers installed to date, compared to 19,000 in July 2013.

"Our enterprise business continues to reflect the trust that governments and businesses have placed in the BlackBerry platform," added Heins. "Security matters and enterprises know the gold standard in enterprise mobility is BlackBerry."

Topics: BBRY Apps

Adam Zeis Adam Zeis "Mobile Nations Content Strategist" 3740 (articles) 2892 (forum posts)

Reader comments

BlackBerry announces preliminary Q2 2014 results



So they say they are not cutting jobs, but they really are cutting many? Thorsten head should roll first for this... he is lucky this is not game of thrones.. he will already lose his head if he was the ceo for the lannisters or the starks.. LoL

Posted via CB10

God, what a blundering idiot. I honestly hate Heins at this point, and the CMO. Sadly enough, they have the nearly full confidence of all shareholders. As much as it pains me to say this, BB has it coming to it. I just pray that whomever is going to buy BB is going to manage it properly and keep it together.

This management team is awful. I just hate these idiots from bottom of my heart. I hope this CEO is fired ASAP. Something needs to be done, they are just making too many mistakes.

Yep, this idiot has to go. unfortunately with many millions $$$$$$ stolen from shareholders.

I'm fine with Heins for now since the future product direction he's taken looks good... Z30, BBM for Android/iOS and addressing a little bit about the PlayBook. The CMO, though, hasn't produced enough... and the Super Bowl commercial was a complete waste.

Can't believe there are RIMTards out there who think Blackberry, the management team and CEO are doing fine. That's RIMTarded.

I don't see where he says they are not cutting jobs.

I think BB is on the right course by moving from BB7 to BB10. The problem w/public companies is that strategies are never given time to materialize because everything is measured in very small quarterly increments. If BB was a private company, they'd be much more able to focus, over a sustained period of time, on executing on their new strategy. They'd have the patience to allow the market to ultimately regain confidence in their products.

I think BlackBerry can make it in the long run, but they should stay the course. Everyone is looking for immediate results.


I don't want to come across as wearing rose-colored glasses (because there is plenty that could be better with these results) but the biggest concern over the past few quarters has been BlackBerry's bread and butter: service revenue. Without service revenue it would have been difficult/pointless to pursue any other long term objectives. The company has shown that BES 10 continues to make good inroads and service revenue has been stabilized; that HAD to be management's primary objective this year. The bleeding has stopped ahead of expectations and it wasn't actually that bad - more of a bad nick than the deep wound many feared. And with a long sales cycle and sticky clients things look set to only get better on that front. That will ensure that BlackBerry has the ability to at least pursue other longer-term objectives.

What are you blind? He's the CEO and has made all the decisions that put Blackberry in the ground. This financial report is the final nail in Blackberry's coffin, and Heins put it there with his 50 million dollar hammer.

They have to. The boat is sinking and probably someone is planning to take it private hence they want to buy it cheap (it's -25% now). It's all part of the plan: only bad news till they buy the company for 2 cents instead of billions.

Well, if that's the case, then The Verge is BlackBerry's greatest ally right now.

Just look at the headline on their blog...

They have no choice. As a publicly traded company they are legally and contractually obligated to report on a quarterly basis.

This is why they want to go private. Private companies don't have to report anything.

They could have delayed the launch of BBM and the Z30... Wait a month, let the negativity die down, then you start with launch of BBM, 2 weeks later launch Z30, Then announce BBM has X million downloads, then announce 25,00 enterprises using BES (what they released today). This way you create momentum. They just killed the buzz of Z30 and BBM with this annoucement. Even a little kid would understand this, but I guess Thorsten has the brain of a duck!

Bbm was announced to launch more than 30 days ago, delay it and you already add to the negative ideal that BlackBerry is slow to release anything and thus already creates negativity. Your argument has a big hole in it here already. The longer it takes to release Z30 the longer or more it becomes less competitive and less relevant; my 15 year old understands this.

Posted via CB10

Exactly. And private companies are able to focus on executing their long term strategy rather than feeling market pressure to change direction every 3 months.

They should have released on the 27th. I have a feeling the buyer knows the inside story and want to buy it cheaper, so Blackberry had to make this news public. Expect the sale very soon.

Why did they release this today is what I would really like to know? It was scheduled for next friday? Can anybody shed light on this?

Well, the last time, they didn't forewarn investors and some here said they needed to manage expectations prior to the shareholders' meeting... Guess it doesn't matter when bad news is announced... It'll tank the stock regardless...

Because the results are so low relative to market expectations. I don't know exactly what the standard is, but there is an obligation to give an earnings warning.

Posted via CB10

Thorsten intends to announce the buyer during the September 27 Earnings Report and the buyer wanted the purchase price heavily discounted. In the real world Thorsten's tactics would be met with a visit from "Uncle Sal".

If BBRY delays its decision on their strategic alternatives, people will not buy any Blackberrys because already customers are confused and spreading rumors that the BB is dead so how can they buy anything if they are not sure if BB will exist few more years.

The only thing that makes sense for them to be releasing these numbers early is to loose share value so a company they are dealing with will make an offer to buy them at a lower cost. Just my thoughts though.

Posted via the best phone ever. The white Z10.

Uh, no. They sold close to 6 million phones during the quarter. Doubtless, most of those were BB7 phones, but it wasn't as low as 250k.

I actually thinks that Heins is like Ellop, an agent that is sent to drove the price of their company down

Had Nokia use android they will be at a bettwr position that they find themselves in at the moment... Ellop made sure that nokia use windows phone...

Same thing happens to BBRY, heins keep making decisions that drove the shares down, primed the company for a take over then he will receive 50 mill fee, that is crazy, twice from what ellop received for killing Nokia.. these guys is just pure criminals...

Posted via CB10

Trading resumes at 3:35 NY time. They stop trading when news is coming that will materially affect the price of a stock

Ouch.... a quarter of the company 's worth got slashed in minutes.. crazy...

Posted via CB10

Why would I troll? Earlier via my stock app it said the days low was a little over $5.00. Maybe I had misinformation, but that last thing I will stand being called is a troll sir. I propose a duel.

BlackBerry Z10 | Verizon | @addm | 333ACECA | C00056F02

I would also like to suggest making the word "troll" one of the starred out words. It's thrown around this forum far too liberally without basis or merit.

BlackBerry Z10 | Verizon | @addm | 333ACECA | C00056F02

With the negative feedback I'm hearing from ios7 BlackBerry should see some gains. Not much but could it be any worse?

Posted via the best phone ever. The white Z10.

Possibly a lot, lot worse. The Verge, though arguably incredibly pessimistic about BBRY (read: haters) are hailing this as the end of BBRY in the consumer market: "Blackberry to retreat from consumer market, layoff 4,500 employees"

It's food for thought and some writing is on the wall. What's a small sales bump if BBRY is pulling out of the race anyway? Brace yourselves, Winter is coming. I hope the haters are wrong.

It means that it's almost over. In about 10 months' time, the company will announce they plan to wind down operations.

Unless someone buys them (and soon). I don't think that's going to happen, though. There's just no value there, even in patents (as most are FRAND) and the company has no other easily-monitized products.

There is no escape for BlackBerry, no matter WHO the CEO is.

What would happen if the company filed for bankruptcy (I'm not saying they will), would the servers run much longer that help keep the phone running?

know what does bankruptcy means before you asking that question. Just to give you a clue, BB does not have any debt but have $2.9-$3.1 Billions cash.

Why will cash 'flush out very fast now'? They're about to reduce their payroll expenses by 40% (more or less, depending on the positions eliminated.)

For the critical thinking impaired a 40% workforce reduction does not equate to a 40% reduction in payroll expenses, unless each person earns exactly 100% / (number of employees) of total payroll. At BlackBerry this is definitely not the situation.

I never said they didn't have enough cash. I was asking what would happen with my phone if they did file for bankruptcy. How long would I have to wait before having to buy a new phone because my blackberry stopped working.

They need to render the service no matter what for a certain amount of time etc.. But by law they are in the obligation to render the service, for how long I don't know.

The thing with stopping the service immediately or soon after it will cause havoc in the industry and affect other vendors as well and not necessarily in their favor if people panic.

That whole thing if it happen it will just scare people because it could happen for their own products regardless it's an Android or Apple smartphone.

If I were them I would not want the other to collapse but to remain small otherwise it cause panic and damage the whole industry.

I think Blackberry wanted to play safe for too long and just got bite in the ass and they are learning it the hard way. The company will just transform for business and prosumer market.

When you think about it Apple did only sell one model every year or so and not 6 of them. Blackberry will need to take a page or 2 from Apple and leave the cheap to Android.

They will be "fine" but heavily transformed. I think bankruptcy is far fetch since they don't have dept in general other than for fiscal reason.

Yes. This exactly. I love my Z10, and this doesn't deter me from wanting a Q5.

"In vino veritas, in aqua sanitas."

Does prosumer mean the average person won't be able to purchase and blackberry and only enterprise customers will?

Posted via CB10

yes, exactly this. They are giving up on gimmicks & over inflated spec race and focusing on productivity & user experience in a business setting. Basically what they were great at once...

If they can go back to there roots that's fine with me i love my BlackBerry Q10 guess i'm a prosumer.

That being said, it 's just not fair BB10 is amazing the device performance is outstanding better then any Android device on the market today. The UI is awesome and the user experience second to none.

Making the Z10 a entry-level device is smart, people are always complaining about how expensive BlackBerry devices are, now more people will get their hands on BB10 devices and experience just how great they are.

Consumers are ignorant sheeps.

One thing I would like for people to understand is that BBRY cant even go back to that identity due to BYOD! Focus on enterprise for what? The only thing they have for enterprise and that is strictly not touching consumer is BES! Thats it! If they think that they gonna sell the same Hardware with BB10 to enterprise only people, than they are in for a BIG surprise! BYOD has taken over and even employees do not want BB phones. So the only thing BBRY as a company has left are patents, BES and BBM.

And why in hell didnt they try to compete for the gimmicky features and all the colors when they have the cash to push it? That is something that we will never know since even if we ask Mr. Ketchup man to answer, he's probably gonna give you some BS PR crap which means nothing.

F U Mr. Ketchup man! Fake a$$ savior

Oh and even tho I now hate BBRY, i'm riding the ship til it sinks! But im not putting a dime on any of their products anymore. They are not willing to push a great potential product seriously, than I wont take them seriously either.

Fire all management and replace it with people who wants to succeed and maybe i'll consider giving them back my money. But right now, all they do is keep on shooting themselves in both foot repeatedly. Just shoot your self in the head and be done with it and save some bullets for your management cause they will probably need it once they realize no body in the industry trusts them and wont give them a similar position elsewhere!

You can call tyhem sheep... and rightly so but if they dont buy, BBRY is going bankrup0ot because this stupid, and possibloy corrupt, didnt listen to smart people and they had the world's best technical minds working for them.

You don't have a clue and read my long standing tag never really has been a consumer device.

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

BB10 is a VERY productive OS. I use it for work each and every day & it's far more efficient than any Android or iOS device I've used.

Prosumer is not your mom, dad, grandparents, nor John McCain. It is someone that wants the very latest in technology and capabilities, and is willing to pay a premium price.

Posted via CB10

I can mean the continuation of minimal to no mass market advertising, and less emphasis in getting apps to BlackBerry World.

Yeah, focusing on 'prosumer' means we can forget about 'popular apps' rushing in. But maybe I'll be able to insert a row in a spreadsheet with documents 2 go.

Posted via CB10

How much does Microsoft have in the bank again? How easy are they going to make up for that 900 million loss with Xbox One sales alone? Don't act like this isn't bad news. It's one thing to be optimistic and it's another to act like something like this isn't a big deal. 4500 employees laid off, 2 canceled devices, and an inventory write down is not good news.

Please instead offer something constructive. For example I think BlackBerry should push to get a hardware partner to get some entry level devices into the market. What are your thoughts on that?

Posted via CB10

"Don't act like this isn't bad news."

What?? I just asked how much the Microsoft write down was for the Surface


Lol well played, the point is Microsoft has been taking huge losses for a while with WP and now Surface so it's not really relevant or comparable to this situation.

Posted via CB10

Actually, the point is that Microsoft can absorb losses better because they are a massive company with much more revenue. BlackBerry just wrote off inventory that it needed to earn profit on in order to survive.

AND in addition, even after Microsoft made the write off of $900M, they still reported several billion of net revenue in that same quarter.

Does that one billion mean the amount that will be lost from lower margin with Z10 now that it is re-priced to be an entry level phone?

The problem is how difficult it is to measure in the short term. We're only just past the 2-yr mark for the release of the 9900. Which means that anyone who bought a 99xx after that date is still under contract with that device. Many of us haven't even had a chance to get a BB10 device if we wanted to.

We're not iOS users who throw away a perfectly good device every year to buy the newest thing.

Just edit the comment and totally replace it with something else - makes you look cool, makes it look as though those who have responded to you are barking mad ;)

I would, but the option isn't there. It was there, and then it disappeared. Tried different browser, logging in/out etc. Oh well.:)

Maybe a time limit for editing? I just was able to edit this.

After posting a comment, if you refresh the page, you can't edit. Or there is an unknown timer of like a minute, after that, you can't edit.

The headline says that BlackBerry puts up the for sale sign, then later says that a University professor says that is the only solution - save or sell. It's a headline - not a fact. They are (just like they have been) looking at all options, which includes a sale. But there is no for sale sign put up in the window yet.

If you are still holding up some of this shares, you should definitely be worried. I have lost so much thinking a potential buyer would offer 15$+ per share....i was so wrong.

Posted via CB10

I sold mine, all of them, at $10.30. I had hope but after they announced that we were looking for a strategic buyer.

Is the 3.7 million devices just bb10 or is that legacy device plus BlackBerry10 devices? God, I hope it's just BlackBerry 10 devices.

Posted via CB10

Just below that it says primarily os7 devices due to bb10 devices not making it to the end consumer.

Posted via CB10

it says , this report recognizes Income from 3.7M phones, mostly OS7 phone ... 5.9 M phones were sold through to customers in the quarter

implication .... received more revenue but will report it later and not showing revenue from all the phones in this report .... perhaps waiting until those funds are actually received, discounting of phones prices is a moving target, might be better to count those chickens when they have actually hatched.

Z10 as entry level, Z30 higher end, similar for Q10 and Q5 ... makes sense

one more phone was expected ... likely another BB10 ... but not necessarily , will it be shelved

this is not bad news, meets previous guidance , should be OK,

the company is solvent and can will gradually add sales, BES will also gradually ramp up.

most interesting ... services are half of the revenue

I hate the stock market crap , but if it any price under $10 is a buying opportunity.


It looks like they changed the way they are reporting their sales shipped vs. sold. It sucks that they had to take a large write down and unfortunately the "informed" public will take it as BlackBerry lost the full amount where in reality they will likely recoup the majority of it in future quarters. What matters should be the cash drawn for it which is about ~300 million bringing down their reserves to 2.6 BILLION from 2.9 in the prior quarter. Company still looks solvent to me and I believe they will be a going concern for the foreseeable future. Sucks for those who will lose their jobs though. My heart goes out to them and their families.

That service revenue is going to dry up very quickly as the devices in use by employees shift to iOS and Android. There is absolutely no point in trying to see a silver lining, here. This cancer is terminal, and the patient is dying. If they don't sell to someone soon, then in a little over a years' time (mark my words), they'll announce they're ceasing operations.

Where are those who say bb10 is awesome and they see more z10 around? Written off after only 6 months and now they release the z30 that will doa

If it wasn't for CrackBerry, would you know there's a brand new BlackBerry OS out there? Marketing SUCKS.

BlackBerry 10 is awesome and I saw one yesterday in a company that doesn't want to never hear that they it can support it through exchange.

I also said it son there!

Posted via CB10 from my Awesome Hub enabled Z10

Might as well; they've chopped up all the furniture to keep the fire going. There's not a lot else left to burn.

Exactly! the facts suck and are in plain english. -- I dont need Chris to write anything.

This is kinda really bad. And people are still like -- no worries.....

Looks pretty bad from where I'm standing. That said, they told us last quarter that they were expecting a loss this quarter so not really surprising, but disappointing none the less.

This is definitely surprising as my expectations were negative eps per trailing conf call but not this low, for short term view. Long term, to me, it can be taken either way depending on what is happening with strategy.

Which make a lot of sense to start with 4 devices. Should have done that right of the bat. Smaller device portfolio and better hardware/software.

My thoughts exactly... While I was excited and concerned to hear 6 BB10 devices were coming, they've clearly realized now that 4 devices (Really just 2) with a high and low end model is simple.

So.......... wheres that Q30?! :D

I wish I knew that when I got my Z10. I love it, don't get me wrong. It isn't a low end device, and calling it that kind of put a a stigma on it.

BlackBerry Z10 | Verizon | @addm | 333ACECA | C00056F02

Yea really, why are they way ahead on there announcement? Something else has to be up for them to be ahead of there scheduled CC.

Take the pressure off next week. BB Jam Asia then as well. Also its Friday afternoon. A good time to release bad info.

Agreed & plus, would you rather have great news with BBM cross platform and then absolutely devastating news right afterwards? Or terrible news and then good news with BBM?

I'd say for how crappy the situation is, this was probably the best time to release it.. :/

They might have a buyer but not at current price so the bad news might be good for someone to get company at a discount

Of course, it's not random. I'm afraid it's very calculated. We just don't know what is the purpose.

Formely a enthusiastic BB-Fan I´m now only deeply grieved by the fate of all the employees and their familys... Cant help, but the faces of Lazaridis, Balsillie, Heins, Boulben and the other fat cats become more and more ugly... Thats the way the system works: profit becomes privatized, losses get socialized...

O Canada! Our home and native land!
True patriot love in all thy sons command.
With glowing hearts we see thee rise,
The True North strong and free!
From far and wide,
O Canada, we stand on guard for thee.
God keep our land glorious and free!
O Canada, we stand on guard for thee.
O Canada, we stand on guard for thee.

I don't blame Lazaridis he created his own wealth and that of BlackBerry's. Development was slow for qnx yo BB10 and nobody but the interval engineers knows if two years could've been shortened or not.

Would be nice if he also had a hand in buying BlackBerry to go private, and soon hive the opportunity to give these former employees their jobs back with more confidence. Hopefully good severance packages with life insurance for at least 6 mo.ths for the employees and families where at least provided and honored. Right now the worse thing is the negativity about BlackBerry doesn't help with that brand on their resume for their next career in the same tech space outside of waterloo.

Posted via CB10

First off why are there closed threads on Crackberry? Secondly $1 billion loss is the net cash savings touted awhile back during a previous poor stock showing, so are they going to seriously consider selling now?

"Prosumer"? Even if they continue on, this will mean even less 3rd party app support. I guess as long as I can sideload....

This makes me sick to my stomach all the lost jobs here in Ontario. F*** Thorstein.

CB10 - Z10 -

Is it's really a lost when you're laid off from a loosing company or is it a positive? Think of all the endless opportunities for them to be picked up by a winner's such as Apple, Google and yes even Microsoft.

Posted via CB10

Is it just me or is that huge loss reported only because they have unsold inventory.

Posted via CB10

Yeah, it's a write down of Z10s. I guess what happened was that the Z10 initially sold a lot so they ramped up production but then the sales slowed down.

Again, the announcement is very much calculated. This is not a random act. Possibly a potential buyer that want to buy it for cheaper price. This announcement will do it.

BlackBerry will no longer be the same BlackBerry as we knew it. Much smaller. Less consumer-oriented. In other words, they'll become nearly invisible to the average Jane/Joe.

Wow, one of the most significant announcements in BlackBerry's history. Memorable, and strange to see, even though none of it is that surprising.

'Company to refocus on enterprise and prosumer market, offering end-to-end solutions, including hardware, software and services'

The next chapter begins.

What does this mean is...good luck with your app selection while BB is still around...this announcement won't hurt potential users of XBBM. It'll make potential Z30 customers change their minds.

To be honest the app selection thus far hasn't been that bad. With companies like Flipboard coming on board it was starting to pick up. This absolutely won't help, but as long as there is an Android player and sideloadable bar files we will be OK. They are moving into an area they are more comfortable in, and it makes sense. I will continue to enjoy my Z10 until my contract expires and hope by then BlackBerry has fully recovered.

BlackBerry Z10 | Verizon | @addm | 333ACECA | C00056F02

The app selection is awful- no major banking apps, etc. No one is interested in sideloading and at the price of these phones, they shouldn't have too! BlackBerry fans need to accept some of the obvious reasons the phone failed- lack of apps people want!

Posted via CB10

Well I guess it's good to get the bad news out first. BBM this weekend and z30 and 10.2 coming in a few weeks. I think it's safe to say BlackBerry has bottomed out this quarter.

Posted via CB10

The z10,q10, and q5 did not sell, what makes you think the z30 will considering the mediocre hardware specs

I do think it is bottomed out. But 7000 employees are still too much for what they plan to do. 3000 or no more than 4000 are enough. They need to let go all B players. It can no longer afford to have a single B player because then that one will turn the reset into B. When I worked for RIM many years ago. We did what they now plan to do with only 2000 people - globally. In the past few years they have been hiring randomly from streets including those bozos that were fired by other companies.

Let's just hope their idea of a high-end phone doesn't come only with a massive screen. With the iPhone 5S lineups, there's clearly still demand for more powerful and slightly compact phones.

I don't want to be forced into a large phone just to get something better performing than an entry-level cheap phone.

Wowzers this freaking hurts !!!
The US media is going to eat this up all day and all night.......
Fire your head of Marketing Now BB!!

First of all the write down is non cash. Secondly the Z10 is going to become very cheap. VZW is offering it free right now with a 2 yr contract. Sales of the Z10 were very bad. I fear for the empire!
The stock is off the cliff. Lost $2.00 in minutes

Terrible news, but not really a surprise. The Z10/Q10 didn't have great momentum out of the last quarter, and with no renewed marketing, there didn't seem to be anything to push better numbers this quarter.

To all the people that said BB marketing was just fine and it was us that complained that just didn't get it, seems neither did the overall market. BB10 is brilliant, the phones are high quality, these numbers directly reflect god-awful marketing.

Still loving my Z10 still buying a Z30
Still my brand of choice,

I'm not going to pretend I'm a business person and start bashing.

Posted via CB10

One of the few voices of reason in these comments. I'll be rocking the Z30 myself when it hits the street.

Very smart move. They don't have the ecosystem to compete in the consumer world so taking their offerings to the business world where they are profitable is the best move they can make. If the general public isn't interested in buying their phones then this makes a lot of sense. It just sucks for the general consumers who do want their devices.

The problem is that there are no apps for the business people either. It is the end, you are still in denial

Sorry to burst your bubble but there are security and government firms that depend on BB. Those consumers aren't going anywhere. Angry Birds and the like aren't required for these companies. QNX will continue to grow and the ecosystem will increase. If it grows enough they can always make another consumer focused device.

True - businesses don't use phones. People use phones. in the end, BlackBerry has to satisfy actual people. They haven't had much success with this lately.

Where the f*** have you been the past 3-4 years??? 'prosumers' (whatever the f that means... someone that has a phone and a career?) have abandoned BlackBerry in favor of anything else that they 'personally' chose to buy and carry around even when they are just a 'consumer'...
Not many buy a phone 'just for work' anymore, so associating themselves with 'professionals' is not gonna do it.

Posted via CB10

No it's for people who require the gold standard in security. The general public doesn't care about security but certain businesses and government does.

The public does understand security. This is just more fanboy arrogance. Professionals are interested in BYOD; people I know just forward their corporate BlackBerry phones to their personal phones and leave them in a desk. I work for the government. IT allow us to get our email on iphone as long as we are using the latest official Apple OS. Nothing else is needed. BlackBerry is arrogant. There is no such thing as prosumer. We are all consumers now.

Posted via CB10

The way I see they are cleaning their plate for whoever bought them.
I think that might be what we see next week.
Get the dirty laundry out NOW..
Next week, they can talk about it but focus on the "GOOD" news that some savior has bought some/all of the company.
The new Owner will get a clean slate with all of the carnage left in the old BlackBerry's hands.

Only 4 devices? THANK YOU!!!!

I was so sick and tired of filtering my way through the plethora of devices they had in the past for no reason except to try and squeeze more money out of a market. Apple only has one new phone per year (with maybe a secondary), so this concept of multiple devices needs to go.

Personally I think this recent round of layoffs is the rock bottom everyone was expecting them to hit. I think it's only up from here as businesses begin to adopt BES 10 (now that it hit SP1/2) and the "balance" approach to devices going forward.

You sound like a BES admin, which I am too -- but man, I've seen so many companies downsize to the point of non-existence.

Also that means they are not caring about the consumer market and little dumb features like notifications, or camera issues, they are going after Enterprise use only.

It's a sad day

I agree 4 devices is plenty. 2 keyboard and 2 slabs at different price points is enough. I was kind of hoping they had a 5th being a mobile tablet. Who knows maybe in the future. If they ever put out another 8" tablet I will be first in line again.

Slider. Now it will never come, so I already own my last BlackBerry device (if you don't count the inevitable $200 off contract z30 I will buy from a tech surplus store next summer)

Posted via CB10

+1 @RyanGermann. I really really wanted a BB10 slider (still using a Torch 9800 and love it). I'll get a Q10 though; was only waiting to see if a slider was on the cards. Doesn't look likely now, as you said.
Wonder how many other people were wanting a slider?

What other full screen touch screen phone is there that has a usable physical keyboard?

BlackBerry 10 is better than any other os. I don't get people that say it'll be their last BlackBerry, yet there's no other phone that has a good physical keyboard, and the touchscreen keyboard is amazing.

Posted via CB10

There are *plenty* of cases that include physical keyboards. With devices like the iPhone being as thin as they are, a keyboard case makes the phone only slightly thicker, while providing precisely the tactile input you're talking about.

Great so now I have a six month old Flagship that I paid flagship pricing for that is being retiered to entry level because they refused to advertise it and expected me to "Sell like Hell" for them. PlayBook part deux?!? Glad I migrated my kids from BlackBerry to the iPhone 5 a few days ago. Much better investment and a company that stands behind their product. I have a feeling this is my last BlackBerry device.

Posted via CB10

Mate I totally feel where your coming from it was make and break.

It just feels like blackberry didn't bother, thinking the brand would see them through.

Generally the blackberry brand has been damaged for 4 years and have done nothing to gain customer confidence again very disappointed

Posted via CB10

What happened to that big order of a million bb10 phones they had sold to a undisclosed customer, was that ever counted? Because I never heard anything back about that order

Posted via CB10

It was to a reseller for Verizon. 1 million is nothing. Apple is expected to sell 6 million this weekend

BB's only hope. Get bought or infused, replace all upper management with people who actually have ideas and goals and don't want to simply limp along.

as long as i can still get my hands on future BB devices, I don't mind... i don't care as much if they're targetting consumers or not, and I don't need a lot of apps. i have just about everything i need now.

BlackBerry is dead. They need to sell up; nothing they do will help them turn around. It is painful to hear them bullshit about a shake up; the execs are sweating like mad and they know full well a CV handed in to MS is the best move forward.

Posted via CB10

So, does this mean there will still be a market for BlackBerry? Do I continue to create apps for BlackBerry? Are they ever going to actually start fighting to keep the company alive?

That's my fear. They really need to state what they are intending to do (as far as device prosumer sales) to let the developer side know how to handle the news.

I want to continue to support BlackBerry, and make more apps, but the numbers need to be there to make a profit.

Have to love the fact that

"The Company has no debt."
is stated.

and that

"As previously disclosed, the Company anticipated generating an operating loss in the second quarter"....

Whats even better is the non-audited cash part.

**********End of the world animation - french guy *******
"Oh shit guyyyzzz, we handed a bunch of checks owwwwtt, we have no monnneehhh"

BlackBerry PR department better step up this time. I am already reading MASSIVELY negative news that exaggerates almost the entire article. On LINKEDIN is now showing they are laying off 5000 workers right now??? Really should be holding people who report the news to a higher standard of HONESTY.