BlackBerry Loses $42 million in Fiscal Q4 and Plans to Re-Release Bold 9900

by Istvan Fekete on March 31, 2014

BlackBerry has earned $976 million in revenue, but racked up a $42 million in losses (after tax benefits), the company’s fiscal Q4 earnings report reveals. The struggling Canadian smartphone maker still has $2.7 billion in cash due to an accumulation of tax refunds and the sale of its real estate, but that’s half a billion less than the $3.2 billion reported three months ago.

During the earnings call, John Chen, however, was pleased with the company performance and emphasized there is still a lot of work to do.

It is important to point, though, to some interesting aspects of the announcement: gross margin is up to 43% from 34% in the previous quarter, likely due to sales of high-margin services such as BES 10 (now compatible with iOS and Android as well), and the majority of its revenue comes from services (56%) rather than hardware (37%).

Also, it is worth mentioning that 3.4 million BlackBerry devices were sold in the fourth quarter – 2.3 million of those were BlackBerry 7 devices.

During the earnings call, John Chen also announced plans for monetizing BBM, a messaging service that has 85 million active users and 113 million users registered worldwide: BlackBerry will add sponsored content in the Updates field, and will partner with other brands on BBM Channels.

Another major announcement was the re-release of the popular BlackBerry Bold 990, a device originally released in 2011 and one of the last BB7 smartphones. The move aims to meet high demand for that device, which sells well in developing markets.

Chen also announced plans to release three high-end smartphones in the next 18 months, produced especially for those who miss the BlackBerry keyboard. Fact is, the BlackBerry 10 sells poorly in most regions, while BB7 is driving sales in developing markets.

Did you like this post? TheTelecomBlog.com publishes daily news, editorial, thoughts, and controversial opinion – you can subscribe by: RSS (click here), or email (click here).

Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

Previous post:

Next post: