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Press Release: BlackBerry Reports Fourth Quarter and Year-End Results for Fiscal 2014

By Adam Zeis on 28 Mar 2014 07:05 am EDT
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The report is in — BlackBerry has dropped their fourth quarter results. They're reporting a balance of $2.7B at the end of the quarter (compared to $3.2B last quarter), with an adjusted Q4 gross margin of 43%, up from 34% in the prior quarter. Approximately 3.4 million devices were sold to end users in the fourth quarter, of which around 2.3 million were BlackBerry 7 devices.

You can tune into the live earnings call at 8am ET today by dialing 1-800-814-4859 or through your BlackBerry 10 smartphone, personal computer or BlackBerry PlayBook tablet at http://ca.blackberry.com/company/investors/events.html.

We'll fire up a podcast later today to wrap things up, so stay tuned!

Press Release

BlackBerry Reports Fourth Quarter and Year-End Results for Fiscal 2014

BlackBerry Reports Fiscal Fourth Quarter Adjusted Loss Per Share of $0.08 vs. $0.67 in Previous Quarter

WATERLOO, ONTARIO--(Marketwired - March 28, 2014) - BlackBerry Limited (NASDAQ:BBRY)(TSX:BB), a global leader in mobile communications, today reported financial results for the three months and fiscal year ended March 1, 2014 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Q4 Highlights:

  • Cash and investments balance of $2.7B at the end of the fiscal fourth quarter
  • Adjusted Q4 gross margin of 43%, up from 34% in the prior quarter
  • Channel inventory down 30% from the prior quarter
  • Reduced adjusted operating expenses by approximately 51% from Q1FY14
  • Revenue for the fourth quarter of approximately $976 million

Q4 Results

Revenue for the fourth quarter of fiscal 2014 was approximately $976 million, down $217 million or 18% from approximately $1.2 billion in the previous quarter and down 64% from $2.7 billion in the same quarter of fiscal 2013. The revenue breakdown for the quarter was approximately 37% for hardware, 56% for services and 7% for software and other revenue. During the fourth quarter, the Company recognized hardware revenue on approximately 1.3 million BlackBerry smartphones compared to approximately 1.9 million BlackBerry smartphones in the previous quarter. During the fourth quarter, approximately 3.4 million BlackBerry smartphones were sold through to end customers, which included shipments made and recognized prior to the fourth quarter and which reduced the Company's inventory in channel. Of the BlackBerry smartphones sold through to end customers in the fourth quarter, approximately 2.3 million were BlackBerry 7 devices.

GAAP loss from continuing operations for the fourth quarter was $423 million, or $0.80 per share diluted. The loss includes a non-cash charge associated with the change in the fair value of the Debentures of approximately $382 million (the "Q4 Fiscal 2014 Debentures Fair Value Adjustment"), a pre-tax recovery of previously recorded inventory charges of approximately $149 million (the "Q4 Fiscal 2014 Inventory Recovery") and pre-tax restructuring charges of approximately $148 million related to the Cost Optimization and Resource Efficiency ("CORE") program. This compares with a GAAP loss from continuing operations of $4.4 billion, or $8.37 per share diluted in the prior quarter, and GAAP income from continuing operations of $94 million, or $0.18 per share diluted, in the same quarter last year.

Adjusted loss from continuing operations for the fourth quarter was $42 million, or $0.08 per share diluted. Adjusted loss from continuing operations and adjusted diluted loss per share exclude the impact of the non-cash Q4 Fiscal 2014 Debentures Fair Value Adjustment of approximately $382 million ($382 million after tax), the Q4 Fiscal 2014 Inventory Recovery of approximately $149 million ($106 million after tax), and pre-tax restructuring charges of approximately $148 million ($105 million after tax) related to the CORE program incurred in the fourth quarter of fiscal 2014. These impacts on GAAP loss from continuing operations and diluted loss per share from continuing operations are summarized in the table below.

The total of cash, cash equivalents, short-term and long-term investments was approximately $2.7 billion as of March 1, 2014, compared to $3.2 billion at the end of the previous quarter. Cash flow used in operations in the fourth quarter was approximately $553 million. Cash flows provided by financing activities in the fourth quarter were approximately $251 million, which includes the additional issuance of $250 million of convertible debentures. Cash flows used in investing activities included intangible asset additions of approximately $243 million. Purchase obligations and other commitments amounted to approximately $1.9 billion as at March 1, 2014, with purchase orders with contract manufacturers representing approximately $586 million of the total.

"I am very pleased with our progress and execution in fiscal Q4 against the strategy we laid out three months ago. We have significantly streamlined operations, allowing us to reach our expense reduction target one quarter ahead of schedule," said John Chen, Executive Chairman and Chief Executive Officer of BlackBerry. "BlackBerry is on sounder financial footing today with a path to returning to growth and profitability."

Outlook

The Company anticipates maintaining its strong cash position and continuing to look for opportunities to streamline operations. The Company is targeting break even cash flow results by the end of fiscal 2015.

Reconciliation of GAAP gross margin, gross margin percentage, loss from continuing operations before income taxes, loss from continuing operations and diluted loss per share from continuing operations to adjusted gross margin, adjusted gross margin percentage, adjusted loss from continuing operations before income taxes, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations:

(United States dollars, in millions except per share data)

Note: Adjusted gross margin, adjusted gross margin percentage, adjusted loss from continuing operations before tax, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company's operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of the Company's GAAP results.

  1. During the fourth quarter of fiscal 2014, the Company reported GAAP gross margin of $553 million or 57% of revenue. Excluding the impact of the CORE charges included in cost of sales and the Q4 Fiscal 2014 Inventory Recovery, the adjusted gross margin was $421 million, or 43%.
  2. As part of the Company's ongoing effort to streamline its operations and increase efficiency, the Company commenced the CORE program in March 2012. During the fourth quarter of fiscal 2014, the Company incurred charges related to the CORE program of approximately $148 million pre-tax, or $105 million after tax. Substantially all of the pre-tax charges are related to one-time employee termination benefits, facilities and manufacturing costs. During the fourth quarter of fiscal 2014, charges of approximately $17 million were included in cost of sales, charges of approximately $21 million were included in research and development and charges of approximately $110 million were included in selling, marketing, and administration expenses.
  3. During the fourth quarter of fiscal 2014, the Company recorded a non-cash charge associated with the change in the fair value of the Debentures of approximately $382 million. This adjustment was presented on a separate line in the Statements of Operations.
  4. During the fourth quarter of fiscal 2014, the Company recorded a recovery of previous charges against inventory and supply commitments of approximately $149 million, or $106 million after tax, to reflect increased sell through rates, relative to the estimates and assumptions previously considered, resulting from discounted pricing and revised orders on hand for devices and components of BlackBerry 10 products.

Fiscal 2014 Results

Revenue from continuing operations for the fiscal year ended March 1, 2014 was $6.8 billion, down 38% from $11.1 billion in fiscal 2013. The Company's GAAP net loss from continuing operations for fiscal 2014 was $5.9 billion, or $11.18 per share diluted, compared with GAAP net loss from continuing operations of $628 million, or $1.20 per share diluted in fiscal 2013. Adjusted net loss from continuing operations for fiscal 2014 was $711 million, or $1.35 per share diluted. Adjusted net loss from continuing operations and adjusted diluted loss per share for fiscal 2014 exclude the pre-tax impacts of an LLA impairment charge of $2.7 billion ($2.5 billion after tax), the Q4 Fiscal 2014 Inventory Recovery of $1.6 billion ($1.3 billion after tax), the Z10 inventory charge of $934 million ($666 million after tax), the Q4 Fiscal 2014 Debentures Fair Value Adjustment of $382 million ($382 million after tax), charges of $512 million ($398 million after tax) related to the Company's CORE program and strategic review process and the Q4 Fiscal 2014 Inventory Recovery of $149 million ($106 million after tax). These charges and their related impacts on GAAP net loss from continuing operations and diluted loss per share from continuing operations are summarized in the table below.

Reconciliation of GAAP gross margin, gross margin percentage, loss from continuing operations before income taxes, loss from continuing operations and diluted loss per share from continuing operations to adjusted gross margin, adjusted gross margin percentage, adjusted loss from continuing operations before income taxes, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations:

(United States dollars, in millions except per share data)

Note: Adjusted gross margin, adjusted gross margin percentage, adjusted loss from continuing operations before tax, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company's operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of the Company's GAAP results.

  1. As part of the Company's ongoing effort to streamline its operations and increase efficiency, the Company commenced the CORE program in March 2012. Further, the Company announced the formation of a special committee to conduct an organizational strategic review on August 12, 2013. During fiscal 2014, the Company incurred approximately $512 million in total pre-tax charges related to the CORE program and strategic review process. Substantially all of the pre-tax charges are related to one-time employee termination benefits, facilities and manufacturing costs related to the CORE program and legal and financial advisory costs related to the strategic review process. During fiscal 2014, pre-tax charges of approximately $103 million were included in cost of sales, charges of approximately $76 million were included in research and development and charges of approximately $333 million were included in selling, marketing, and administration expenses.
  2. During the fourth quarter of fiscal 2014, the Company recorded a non-cash charge associated with the change in the fair value of the Debentures of approximately $382 million. This adjustment was presented on a separate line in the Statements of Operations.
  3. During the fourth quarter of fiscal 2014, the Company recorded a recovery of previous charges against inventory and supply commitments of approximately $149 million, or $106 million after tax, to reflect increased sell through rates, relative to the estimates and assumptions previously considered, resulting from discounted pricing and revised orders on hand for devices and components of BlackBerry 10 products.
  4. During the third quarter of fiscal 2014 the Company performed a long-lived asset impairment test and based on the results of that test, the Company recorded a non-cash LLA Impairment Charge of approximately $2.7 billion pre-tax, or $2.5 billion after tax.
  5. During the third quarter of fiscal 2014, the Company recorded a primarily non-cash, pre-tax charge against inventory and supply commitments of approximately $1.6 billion, or $1.3 billion after tax, which was primarily attributable to BlackBerry 10 devices.
  6. During the second quarter of fiscal 2014, the Company recorded a primarily non-cash, pre-tax charge against inventory and supply commitments of approximately $934 million, or $666 million after tax, which was primarily attributable to BlackBerry Z10 devices.

Conference Call and Webcast

A conference call and live webcast will be held beginning at 8 am ET, which can be accessed by dialing 1-800-814-4859 or through your BlackBerry® 10 smartphone, personal computer or BlackBerry® PlayBook™ tablet at http://ca.blackberry.com/company/investors/events.html. A replay of the conference call will also be available at approximately 10 am by dialing (+1)416-640-1917 and entering pass code 4612572# or by clicking the link above on your BlackBerry® 10 smartphone, personal computer or BlackBerry® PlayBook™ tablet. This replay will be available until midnight ET April 11, 2014.

Reader comments

Press Release: BlackBerry Reports Fourth Quarter and Year-End Results for Fiscal 2014

167 Comments

Dead?Iam still using a Q10....guess dead means that to you......Asalam alaikum!!!

Incurable Q10 Syndrome

The problem is that after having their Bb10 devices in the market for a year they are only selling slightly more than 1M devices a quarter.

You need to buy more Q10s.

Posted via CB10

With all the negative perception especially amongst US carriers....yea!If a brand manages to sell itself despite all the bad press,unfriendly partners (carriers),little advertising and no public relations then that brand is super.

Incurable Q10 Syndrome

I believe you meant to say figuratively dead. Technically dead is really dead. :-)

Posted via CB10 on a Z30STA100-5/10.2.1.2234

3.4 million smartphones were sold through the end user. The previous quarter is included in this total amount..

Posted via CB10

They're damned if they do and damned if they don't.

When they "shipped" phones, they got sneered at for stuffing the channel. Now that they're reporting sell-through also, they have you sneering at them for light shipments. lol.

What would worry me is that os7 phone continue to dominate sales vs bb10. I don't get this; the new phones are centuries ahead of the old. They need to keep up on pricing decreases and improve marketing drastically.

Tapped and flicked from my BlackBerry Z30!

We need a new commercial. I'm an iPhone, I'm an android and I'm a blackberry. They should get Ronnie Coleman or Mr T to play the blackberry. The other two can be scrawny nerds. Now that would be a good commercial.

Posted via CB10

Mr T? Chuckle. That you Boulben?

Let's try and think about marketing strategies that don't drive people to Google 'Mr T'

Posted via CB10

BB7 phones are so cheap right now compared to BB10. I think we might see BB10 start to overtake BB7 this next quarter with Z3 sales, if they get the pricing and marketing right.

Posted via CB10

Wow, great minds think alike, if only my internet wasn't slower than soil erosion, I might have commented before you ;)

Those sales come from emerging markets. Remember BBOS devices are still cheaper than BB10, as soon as the Z3 hits, BB10 sales should pick up over BBOS sales...

LOL - you know, the year before the iPhone came out, they were considered "on top of the world". And then ended FY2006 with a grand total of 4.9 million global users.

Perspective ...

Exactly, BlackBerry weren't all about volume of users.

The focus is obviously regaining the market share that was loss in enterprise which they're still strong in.

The reports of BlackBerry's death are greatly exaggerated :p

Yes but that is when the entire smartphone pool was very small. Ford sold 12000 Model T's in 1910, but if they sold that many cars today people wouldn't be talking about the model T and how 12000 was top of the world!

Posted via CB10

Your point is true, but I was addressing this in the context of the company surviving. People seem to think BlackBerry had like 150 million customers the year before the iPhone came out and now have 126,000 maybe. :-)

They were able to survive before on a small number of users, they can probably carve out a form of niche in the interim and continue to survive.

True thats more then 200 million in today's dollars, but blackberry isn't selling low volume for high profit, they are playing in the same field as all the other phone maker's.

Proudly posted with a Z30 via CB10

The Foxconn deal should help in this regard. It is too bad we have to send all the work over seas though.

Posted via CB10

Those people overseas need work too. The thing is they work for cheaper wages which in the big scheme of things, i.e. earning money for corporations, is what really matters.

Phone sales is the wrong metric to focus on, especially this quarter. The number is basically static (bottomed). Chen will at least make sure the bb10 proportion increases.

The margins are up, the losses are way down, and hardware represents only 37% of BlackBerry revenue.

Posted via CB10

This is what people should be taking from the report.

It wouldn't surprise me one bit if BlackBerry just folded on the hardware division all together or made a deal with a big manufacturer like Samsung to manage the hardware. Then BlackBerry can solely focus on enterprise, service revenue and BB10 OS evolution.

We're so fixed on wanting BlackBerry to sell devices that we're failing to see the big picture, which is reinforcing your profitable sectors within the company first. BlackBerry's direction now should be selling devices as secondary and not a primary.

BB10 devices should be made out to be a beneficial opportunity to big enterprise or SMB (small and medium business), who invest in other BlackBerry service models e.g. BES, MDM, eBBM etc. The focus should be to have devices getting into the hands of corporate type employment through service revenue generated products, so that use of BB10 devices are then well adopted. Think about it, other then home where else do you spend most of your time? AT WORK! Now imagine if your company only deployed BB10 devices because that's the solution combined with BES they choose for their communication needs.

Posted via CB10

Considering the carriers aren't even selling the phones and there has still been absolutely no advertising ( unlike all other devices) and the press take every opportunity to destroy them....then it's not too bad!!

Posted via CB10

BlackBerry reported an adjusted net loss of just $0.08 per share while the Street expected a much larger $0.55 loss per share.
BlackBerry shares rose 3.5 % to start the day.

Via The BlackBerry Z10 Experience.

Never was good at understanding figures, I kinda read that two ways

Posted with the brilliance of my Z10 

I think I read it too quickly - saq grose margin was up, but that's the loss eh?

Posted with the brilliance of my Z10 

Not sure there.

The loss is seen as much better than expected. the sellthrough seems higher than expected as well. The margins are up.

The sticking points will be the cash burn and the lighter than expected top revenue.

Chen will probably be asked a lot about when new products are shipping (Z3, Q30) to address immediate needs; how BES installations are going; and plans to monotize BBM.

Really? It is not as bad as I expected and it should be interesting to see how the market reacts today.

I can't believe this idiots, BlackBerry and its Marketing department are the worst enemy BlackBerry ever had. How can they be selling old devices more than new ones!... this is wrong and this is a big issue caused by its marketing dpt. And the margin suggest that they are selling their BB7 devices at the same price they've been selling them. They are not doing any new effort, or campaign, basically they just waited and see... No effort from their part.

The problem may be in the enterprise, where they are still using BES5.
I am buying 9720's at the moment, as I have no BES10 to buy Z10's, Q10's, or Z30's for.
They need to release BES12 now, so that the customer has a simply upgrade path to BB10.

I didn't expect much but this looks very very light on revenue and sell through units. Also cash burn is also on the high side.

Have to listen to conference call to hear details.

This quarter should hopefully be the bottom

Posted via CB10

BlackBerry devices are still really popular in smaller economies, and because they are smaller economies the cheaper devices are going to sell better.

While BlackBerry 7 devices are still being sold and are cheaper than BlackBerry 10 devices, they will always do better in this types of markets where cheaper > new functionality.

That's my opinion though.

Posted via CB10 on a Z30STA100-5/10.2.1.2234

You know I tend to always forget them.

it's just that when you compare the units sold per type, i'm just surprised that they are selling so few BB10 devices.

Posted via CB10

no!.. they aren't cheaper in any sense... my z30 was priced at $400 USD and the old Bold9900 was priced at $800 USD.... if BBRY is selling more BB7 devices it must be due to the poor marketing.. this is just people going in with the full ignorance that BB7 is the same than BB10. TAKE THE BB7 AWAY and just sell BB10 devices at a reasonable price now!

Your argument is quite stupid considering there are many other BB7 devices, such as the Curve 9320 which is super competitive in the African market...

Yes, that is plain wrong, PlayBook Hardware can be placed at $199 USD, while the Curve 9329 is $154.95 USD, BlackBerry could have replaced BB7 since the begining, they are selling Curves because there isn't a BB10 priced at the same level.

Beat street expectations on loss. .08 vs. 58.
Chen's quote was good: ""I am very pleased with our progress and execution in fiscal Q4 against the strategy we laid out three months ago. We have significantly streamlined operations, allowing us to reach our expense reduction target one quarter ahead of schedule," said John Chen, Executive Chairman and Chief Executive Officer of BlackBerry. "BlackBerry is on sounder financial footing today with a path to returning to growth and profitability."

Posted via CB10

Gross margins are up and 1.1 million more BlackBerry 10 devices sold. Actually not that bad. Revenues are falling still. That is expected but all the recent cuts will help stabilize the company. The fact that they still are sell millions of the old BB7 devices is good. The revenue from those devices is more than BB10. Finally, they are still getting BES10 sales which should kick in over the next few years

Posted via CB10

The Z3 can't come soon enough. They need to get people buying bb10 devices. BB7 devices are the only thing people can afford in these other countries. The Z3 will help change that.

Posted via CB10

BUT - Z3 sales may just replace BB7 sales, meaning more BB10 handsets in the wild (good for brand) but less BIS revenue (very bad!).

The key is for the Z3 to attract new users to BlackBerry. Let's hope they hit a home run in doing so.

Posted via the Android CrackBerry App!

One thing that should help reduce that difference a bit is that BlackBerry 10 phones make more money than BlackBerry OS 7 phones in music, video, and app sales.

Posted via CB10

Wow only 1.3million bb10 phone sold IN THE WORLD!? That's less than the population of alaska.

Time to panic?

Posted via CB10

15 minutes later.. stock is up 4.31% in pre-market. That can always change of course (and likely will) during the call, etc.

Guess that means at least the street expected worse than what was delivered. 

Not a lot of phones being sold though. We're talking only 1.1 million BB10 phones sold to end customers in three months. :(

I'm still waiting for Vodafone Australia to carry the Z30, currently they only offer the Z10. Just not good enough if the top of the line phones aren't being pushed.

Posted with the brilliance of my Z10 

In developing nations when price dropped sales did increase. That shall be not counted in this quarter. Also losses are less than expected is a good sign. Now z3 success lies on marketing. Unfortunately i saw nokia X ad but not a single ad of blackberry on tv on any channel.

Posted via CB10

Loss where lower than predicted, I think this is the first sign of the turnaround that John Chen is preparing. Let us not forget he is CEO only for a few months, no device hit the market yet only the Z3 whas officially announced, and the only new service is the BES12. His main concern is to stop the bleeding right now. At Sybase Chen needed 3 years to fix things. Lets give him time and all our suport.

BlackBerry sold 3 millions 400 thousand smartphones...
Blackberry can do better with BB10...
Nevertheless Microsoft sold only 1 million smartphones, their first year , so!

Revenue decline of 18% is definitely levelling off. 51% is a pleasing reduction in operating expenses. We're on track.

Z10 STL100-1 (10.2.1.2102) and PlayBook (2.1.0.1753)

Earning loss is 0.08 per share is not bad. Surely going towards a better results now as this is lesser than expected loss. Also result is for jan-march whereas new bb10 sales in developing nations are rising shall be reported in 1st quarter FY15

Posted via CB10

CNBC says it was better than expected. Wallstreet expected a loss of 0.55 per share and they came in at only 0.08 cents per share. Revenue was lower than expected but the cost cutting was better than expected.

Posted via CB10

I don't see Chen moving fast enough, they need to pour some gas on this thing and light it up.

Posted via CB10

It's all about momentum. You can't just fix a free falling company in such a short time. That's why the cash infusion from Fairfax was so important. It's giving them the time to turn things around. Chen said they are already a quarter ahead of their targets so any further acceleration is just icing on the cake.

Posted via CB10

He said that he's a quarter ahead of his plans for cost reductions. They also expect to be to profitability next Q. How isn't that fast?

Posted via CB10

Your right, I say it out of frustration. I like John, I want him to come out swinging and knock this thing out of the park

Posted via CB10

I hear you but it doesn't always work like that. The best batters tend to go to the plate with a plan in mind - wait for the right pitch to hit. To swing at every pitch suggests desperation and can put you behind in the count, at which point the tendency is to do something desperate. BBRY cannot afford to not get things right the first time. Tempered urgency is what I call it.

I don't understand. BB10 is a great OS and I read everywhere that people are impressed (non BlackBerry users also) but still BlackBerry sells hardly any bb10 device??
What can BlackBerry do to compete with a android an ios???

posted via my Z10 

BlackBerry should actually tell to the public what BB10 does way better than any other OS.
That's it!
Results are better than expected. That's good. The sales are looking thin though. That's bad.

If the keyword is advertise / marketing and tell the world how good bb10 is why doesn't BlackBerry do that???????

posted via my Z10 

Because they don't have the vision to do it right. Unfortunately. They're just playing safe, even though the time for playing safe it's gone!

They need to sort out the carriers as well. Most people here in the UK will go into a store to buy their device so they can try it out and take it away. Hardly any of the carriers here have BB10 out in the stores - that's why so many think BlackBerry is dead! If you ask for BlackBerry they will try to talk you into buying android.

Posted via CB10

Situation it's the same all over the place. When I've bought my Z10, the guy from the Orange's Romania store it was amazed because, unlike him I knew how the BB10 is working. He tried for about one half hour to convince me that Apple products are superior and Android phones are cheaper. Such a shame!

Advertise it. These devices are not sold in stores or by carriers. Have a commercial that shows the device and it's compelling features. Then have the commercial close with buy it directly from blackberry directly, unlocked, with a warranty and support plan. Make it a niche concierge type of service. Even have fun with it. 'Other users line up for hours to get their next new device that really offers nothing changed. BlackBerry knows your time is important, so we will send the device to you, and help you setup on your time. '

Posted via CB10

Yeah revenue seems lower than expected, but gross margin increase means a leaner more efficient business.

Aka S.Jizzle Z30STA100-5/10.2.1.2141

This is better news than anticipated, although the fall in the revenue is still a concern. Hopefully they can sell more phones this quarter.

Posted via CB10

It's generally good news. The loss on an EPS basis is less than expected and the vast majority of the loss is a non cash item adjustment. Seeing as they have hit their cost cutting target 1 quarter ahead of projections it won't take much to move the needle into profitability. If the foxcon deal works it could flow through to gross margins on hardware sales (as there won't be inventory costs) and its back in black.

Posted via CB10

yes - but you can't cut cost's indefinately.

Sales are BBRY biggest issue - they need to start openening their own stores or completely leave the consumer market.

Minimising risks and cutting expenses is all about streamlining the company to become profitable.

The z3 is minimising risks while providing a phone for their key growth markets that warrant a low end, high volume phone.

BlackBerry will go in with the q20 and a high end smartphone by years end. This is all about making BlackBerry profitable alongside building the revenue service that enterprise gives and the falling revenue that legacy devices have provided in the past.

Chen seems to know what he's doing with the moves he has done so far, judging by what's been said, they're ahead of schedule.

I think "opening their own stores" is suicide. It took Apple *MANY* years to build up the chain they have now. it's a massive, massive, massive capital investment.

IMO, they need to fill a void in their product line to start. The emerging markets still don't have a credible BlackBerry 10 contender, which is why we're still seeing so many BlackBerry 7 phones moving relative to Blackberry 10.

Bring on the Z3 - pronto. Then the Q3 and fill the void. No disrespect to Q5 fans, but that was not a proper BlackBerry 10 version of the 85xx.

Ok if not opening their own stores, then at least insert staff into phone shops who know what a BBRY is and how to use / promote it.

Also pile on the TV advertising - no good having a great product if no one lnows about it.

Completely leave the consumer market?? WHAT??

What part of "Restructuring" don't people understand? Leaving the consumer market would only drive BBRY into Chapter 11. Just look how hard both Android and iOS are trying to enter the Enterprise...

John Chen is not that foolish. Enterprise & Consumer Market go hand in hand.

Posted via CB10

All things BlackBerry considered, not as bad as expected.

The Z3, Q20 and BES 12 will help turn those legacy vs BB10 numbers around as well methinks. Chen is executing, there's a glimmer of light at the end of the tunnel.

Posted via CB10

You are very correct. BlackBerry was preoccupied with house cleaning this past quarter; now it can focus its attention on selling phones and generating other revenues from services.
I am happy.

And laying people off costs money initially., those savings aren't realized immediately. Contracts based on volume will be renegotiated that reflects their new position, etc. I'm optimistic.

Posted via CB10

John Chen has done a great job. Company is right on schedule to break even, then profit.

Regarding BB10 device sales, well what do people expect? There has been absolutely NO Marketing behind BB10 at all. John Chen already mentioned he's not putting money into Marketing just yet.

IMO, he's going to re-build USA Carrier relations with Verizon and AT&T, to help push the Q20 and the Z50 device later in the year. I believe at that time, they are going to BEEF UP marketing in a way where you will get best results for money spent.

Long and Strong.

Posted via CB10

Exactly, the push is in rebuilding relationships in enterprise and with carriers.

No point pushing money out the door without first planning it out.

Limited sale periods have helped BlackBerry sell a few BlackBerry 10 devices - this at least keeps them in the mind of consumers while they plan their next round of devices.
It's just a shame prominent retail channels still don't stock the z30. I do believe this hindered the company which I believe backs up the first paragraph of rebuilding

I'm not too worried about that. Their operating expenses have substantially dropped, they have big tax credits coming in and the sale of the real estate is expected in coming quarters.

it's going to be a bumpy ride for a few more quarters

how can they sell BB10 phones that are not available in shops? here in Belgium only one carrier selling only Z10 and online, No Z30 here! nothing expect from BB10

triestig he...

Hopefully the z3 will make it to the West !
Low budget , Big screen , amazing Os...Win win...

I believe from here on, BlackBerry will begin to focus on finding avenues to sell the phones and generate more revenues from other services.

Chris Umi How did they report a 8 cent loss vs a 55 cent loss ? I predict JC will leak another surprise in his interview can't wait !

Reducing the reliance on hardware sales is a great start, and they need to continue this. Revenue of course is going to be down if they sell fewer devices and have shrinking BIS revenue. BlackBerry is transitioning to a software/services company, and while doing that, they still managed to beat the street estimates and keep their cash. It looks good on the surface, but it has only been 3 months.

 

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They're still in the game, the results do show a light at the end of the tunnel but it goes without saying the business needs to start growing again. Consider this the first batch of good news in very long time.

Sent from my BlackBerry Z30

This is ok news, not great but no one was expecting it to be. Chen stems the bleeding, gets BB10 updates out faster than anyone with 10.2.1 (sold it to me with that release) QNX ramping up, BES 12 releasing, BBM video coming cross platform, monetization on the way, new phones out very soon. Price it right, advertise it, and it will sell! It needs to be cool again and in the hands of business owners. Last quarter was to cut costs. Now is the focus on making money. Next quarter you will see more income and more phone sales on the rise. Chen has a plan thus was step one, now on to step two which is about to happen very soon!

Posted via CB10

Looks good. 48 million dollar loss and the rest of it was non cash inventory loss. Reduced cash position from setting up Foxconn deal, employee layoffs and other etc. Almost break even.

Posted via CB10

I guess everyone forgot blackberry still has not received their 1 billion dollars in tax credits yet. Their cash position is going to improve again. Layoffs are ending so costs related to that about over....payments related to royalties are declining....their cost structure is going to look a lot better going forward....BBOS = continually service revenue which means the fallout isn't as bad...initial Foxconn payout to get the deal going is over so they should start to see payout of that deal going forward in quarters to come..many positives...

Posted via CB10

It's not that bad news, actually is the first sign of the turnaround, loss where lower than predicted

“I am very pleased with our progress and execution in fiscal Q4 against the strategy we laid out three months ago,” said BlackBerry CEO John Chen. “We have significantly streamlined operations, allowing us to reach our expense reduction target one quarter ahead of schedule. BlackBerry is on sounder financial footing today with a path to returning to growth and profitability.”

They need a budget phone out in the shops PRONTO. I cannot stress this enough. A huge part of their market in the UK was people who wanted affordable handsets. They would sell millions if BB10 was affordable.

Now that the restructure is almost done and cash won't be going out as quickly, they need to focus on carrier relations and advertising. People need to see the device working to believe. Love to see a sort of "pepsi" challenge by covering up the BB name, tell people it is the new ios or Android software then surprise it's a blackberry! Perception needs to change and the Z30 is the current device to make it happen. Sales will rise next quarter as will revenue. Expect cash burn but from advertising not redundancy packages.

Posted via CB10

My first earnings call. RE: the classic - I like the statement: we took a survey of 1, that was me - and we won! Balls!

Posted via CB10

People need to look at the cash burn more than everything else. Its cash position dropped almost 500 billion even after accounting for the additional infusions of cash. (I believe it's not clear from what I read). This to me is concerning. Unless something changes DRASTICALLY they basically have 5 maybe 6 quarters of cash left. Look at the numbers. Do you really think it can become cash low positive in a year. Mmmm. Hate to say it but it looks ominous.

Posted via CB10

True here in Namibia where BlackBerry is still strong with BB7. There is no Z30 why the top of the range. We have a local Facebook page called buy and sell and I'm horrified how everybody sells their BlackBerry. Everybody wants Samsung or apple...that is sad...had my Z10 a year ago and just purchased the Q10 for my wife. they should push the advertising. I always remember watching dexter at the beginning of the Serie, he used Nikon camera, and at the end he finished with Olympus. BlackBerry should take example of this fantastic way of promotion. ...

Posted via CB10

Good Job Mr. Chen. We are moving in the right direction. May not be as fast as everyone likes but BlackBerry is doing the necessary things to stay relevant.

Why spend money on advertising when your doing this much without it.

1.1 million units sold in the past quarter. How much money spent on advertising?

Remember BlackBerry don't have to sell a zillion phones to be successful.... they just have to make sure they're producing a great product efficiently and keeping cost in line with sales. Never said it was easy but that when you rely on your management team (calvary) to make it happen!

Posted via CB10

To me this sounds like gibberish...the same spoonfed bullshit all the Wall and Bay Street parasites have been spewing about this company for years...

I still think that David Suzuki was right when he asserted that "conventional economics is a form of brain damage"...and nothing embodies that more than all the leeches the financial sector has to offer.

People who really don't contribute or add anything to this world in any practical and qualifiable sense...other than their own rectum derived philosophy and ideology, one of make-believe, abstract zeros and ones, artificial building blocks of an environment of non-existence, one supported by the profit motive using greed as it's mortar...

No one can deny that as a company BlackBerry has made some glaring mistakes and baffling managerial decisions, and is to blame in large part for the self inflicted wounds it has suffered over the years, but beyond that I don't trust all these modern day doomsayers!

So for me as a layperson, I will sum up my feelings more succinctly: I don't give a flying fuck!

Cartman says: Screw you guys I'm going home!

BlackBerry need improve on OS and none stop upgrade. Design have creative and look must have different then market. Apps have cheaper and more with advance. Upgrade os must synchronize all country in one time. Pricing must lower and quality.

Posted via CB10

Obviously the guys at CB have to translate this for dummies, so these stupid dummies don't speculate the wrong thing and spread their stupidness to other idiots ...

From my White Z30

After reading some comments I just want to out it out there that they are performing better than before.
Adjusted Q4 gross margin of 43%, up from 34% in the prior quarter
Reduced adjusted operating expenses by approximately 51% from Q1FY14
Revenue for the fourth quarter of approximately $976 million

I believe they will grow

Posted via CB10

Let's remember that Chen was cleaning the last corners of house with dirt left from the last CEO, et. al, with regards to this ER.

Now, we see Chen at the helm in every way, so I believe that the next ER starts the upward climb. We see evidence of this already.

The problem of bb10 sales is just very simple: people have no idea about bb10 devices and who approach to get to know these devices in shops draw back because of the high prices! I mean lets face it: why would people who doesn't know the z30 would buy it or get to know it if the iphone is of same price?! BlackBerry is not in a situation to sell in high price. They should do some tv media introducing BlackBerry 10 and giving a feeling that BlackBerry is still alive! Just stop making new devices it won't work save money to media and lower the prices. BlackBerry too quite!!!

Posted via CB10

Had AT&T offered the Z30, I would have bought it. But i can't even get a freakin update from them, so there goes that out the window!

People consider $500+ for a BlackBerry device too expensive so until the prices drop below the competition there nothing compelling consumers to adopt BB10. They are in real danger still if the number of BB7 vs BB10 doesn't change.

Posted via BlackBerry Z10

They're selling off the bb7 stock. Once it's all sold out, bb10 will be selling more as people grab upgrades of hardware. :)

Posted via CrackBerry 10 (CB10) application using my BlackBerry Q10.

Chris umi's viewpoint should settle most people's misunderstandings. They need to sell OFF the bb7 stock, then bb10 will flow through. Most don't get it. Lol.

...but I do.

Posted via CrackBerry 10 (CB10) application using my BlackBerry Q10.

Oh BlackBerry lol, maybe things would have been different if you had even 10% of Apple's marketing ability. That's the only thing killing these amazing products and the reason BlackBerry 10 failed at launch last year despite being a media darling for a few months.