BlackBerry Reports Nearly A Billion Dollar Loss This Quarter

BlackBerry has just admitted it's all but squashed as it has suffered close to a billion-dollar quarterly loss.

Failing smartphone maker BlackBerry has just reported its second quarter finances, and they include a single damning number that will hit headlines around the world: A loss from continuing operations of $965 million.

BlackBerry says the figure includes a "non-cash, pre-tax charge against inventory" of $934 million for "Z10 inventory." Which basically means it's having to write down a massive pile of cash for its Z10 phone, which isn't selling as BlackBerry had hoped (and for which it has presumably paid its suppliers and shippers). This means even without the Z10 charge, BlackBerry was going to report an operating loss of some $31 million... an unmistakable sign the company is flopping badly. BlackBerry's manufacturing partner Jabil Circuit said yesterday it was trying to distance itself from the former smartphone giant in planning for its future.

Another interesting figure in the data is the cash and investments balance of $2.6 billion. Considering the firm has just agreed to a roughly $4.7 billion buyout by Fairfax Financial, and its patent portfolio must easily be worth a few billion dollars, the company looks like it's heading to be wound up--because Fairfax is buying it for its assets, not its value as an ongoing concern.

[Image: Flickr user Eran Finkle]

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5 Comments

  • Predrag Savović

    Big mistake!!!!! BlackBerry is and will be BlackBerry!!! I truly believe that the product can and should survive... as far as research i do not have to do it... just have to look at myself and what BlackBerry does for me and other millions of users!!!! 50,00$ for BlackBerry?

  • come on man

    are you on drugs? have you read any other news from Prem Watsa? he says specifically that he isn't buying the company to break it up and just take pieces, wtf man, do some research.

  • Keith Gilabert

    I currently use a Z10 and it is an overall excellent smartphone.  The OS is solid and the screen pad is responsive.

    Blackberry still has 66 million subscribers.  It needs to continue to develop the product lines but in limited production.  This billion dollar loss is unacceptable.

  • Predrag Savović

    What BlackBerry needs to do is. To forget about massive sale of its product and focus on millions of business users and try everyday to fulfill our needs at the premium. I am truly sad knowing that BlackBerry might windup dead. I propose that each of 60.000.000 subscribers chip in 50,00$ each and help BlackBerry, and create a unique product thinking ONLY on business people need and their connectivity. I also want them to charge for their phones MORE as they are truly BETTER than anything else on the market. I first donate 50,00$...