Blackberry Ltd. loss in fourth quarter narrows to $423M

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – Blackberry Ltd. reported on Friday a lower than expected quarterly operating loss, but revenue was below what analysts expected, falling below $1bn for the first time in seven years, and the company’s cash positioned declined.

In the fiscal fourth quarter ended March 1, the loss was $423mn, or 80 cents per share, way better than the huge loss it recorded in the third quarter but a reversal from the profit of $98mn, or 19 cents per share, a year ago.

Adjusted to exclude some items, the company posted per-share loss of 8 cents. Analysts predicted a loss of 55 cents per share.

The $976mn revenue was lower than analysts’ estimate of $1.11bn and down 64 percent from the previous year. For the quarter, the revenue breakdown was around 56 percent for services, 37 percent for hardware and 7 percent for software and other items, according to the Waterloo, Ontario-based smartphone maker.

The company’s cash position worsened, slipping to $2.7bn from $3.2bn in the previous three months.

Since BlackBerry announced last year of its plan to sell the company and instead went ahead as a public company, Chief Executive Officer John Chen has focused on reducing costs and lowering inventory risk in an effort revive the company’s fortunes.

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