BlackBerry Ltd (BBRY) reports $4.4 billion loss, partners with Foxconn, hits 40 million BBM app users
BlackBerry Ltd (NASDAQ:BBRY) has posted a major quarterly loss on Friday due to an inventory write-down and asset impairment charges. BlackBerry Ltd (NASDAQ:BBRY) reported a net loss of $4.4 billion ($8.37 per share) for the third quarter ended November 30th.
BlackBerry Ltd (NASDAQ:BBRY) reported net income of $9 million (2 cents a share). BlackBerry Ltd (NASDAQ:BBRY) reported a loss of $354 million (67 cents a share) excluding one-time items. BlackBerry Ltd (NASDAQ:BBRY) revenue dropped to $1.19 billion from $2.73 billion.
BlackBerry sold only 1.9 million smartphones compared to 3.7 million last quarter. Most of the smartphones sold were BlackBerry 7 devices.
BlackBerry Ltd (NASDAQ:BBRY) heavily depended on the BlackBerry 10 operating system to take off, but it failed to gain a significant market share. Due to mediocre sales and a stock price decline, BlackBerry started to consider finding a buyer to take them private.
Fairfax Financial Holdings initially made a bid for over $4 billion, but was unable to line up financing. BlackBerry Ltd (NASDAQ:BBRY) ended up canceling the sales process and decided to refinance through $1 billion in debt to a group of investors.
BlackBerry Ltd (NASDAQ:BBRY) has agreed to a five-year partnership with Foxconn to develop and manufacture a handset for markets where there is a large demand such as Indonesia. Foxconn will manufacture and manage new BlackBerry devices.
“This partnership demonstrates BlackBerry’s commitment to the device market for the long-term and our determination to remain the innovation leader in secure end-to-end mobile solutions,” stated BlackBerry CEO John Chen. “Partnering with Foxconn allows BlackBerry to focus on what we do best – iconic design, world-class security, software development and enterprise mobility management – while simultaneously addressing fast-growing markets leveraging Foxconn’s scale and efficiency that will allow us to compete more effectively.”
BlackBerry is being divided into several divisions going forward. The company will be split into Enterprise Services, Messaging, QNX Embedded business and Devices. This is part of a goal to focus more on services and software.
BlackBerry Ltd (NASDAQ:BBRY) reported that over 40 million Android and iOS users have registered for the BBM app in the last 60 days. Over a dozen OEMs also announced plans to preload the BBM app on Android devices, including LG.