BlackBerry earnings for Q3 are out.
The overall net loss for the quarter was a whopping $US4.4 billion. Shares were down as much as 8% pre-market on the news, but later recuperated when interim CEO John S. Chen began talking on the company’s earnings call.
The company also announced a five-year manufacturing deal with Foxconn, the same company that produces gadgets for Apple and many other tech companies. Foxconn will help BlackBerry make phones for Indonesia, where BlackBerry smartphones are still very popular.
Here are the most important numbers from the earnings report:
- Revenue: $US1.2 billion, which is down 56% from the same quarter last year.
- 1.9 million smartphones sold. (It sold 3.7 million last quarter.)
- Loss of $US0.67 per share, or $US354 million. $US4.4 billion net loss, or $US8.37 per share.
- The company has $US3.2 billion in cash on hand.
BlackBerry attempted to sell itself and go private earlier this year. That plan failed when a private equity firm called Fairfax Financial couldn’t raise the $US4.7 billion it needed to take BlackBerry private. Instead, Fairfax invested $US1 billion in BlackBerry and its then-CEO Thorsten Heins resigned. BlackBerry now has an interim CEO named John S. Chen who will attempt to have BlackBerry focus more on business customers than everyday consumers.
On the conference call, Chen said the new deal with Foxconn would allow BlackBerry to sell its handsets to emerging markets in Asia. Those areas have the biggest growth opportunities for smartphone makers since most consumers are still using regular cell phones.