BlackBerry Q2 Earning Results

BlackBerry Q2 Earning Results

The Waterloo, Ont.-based smartphone company had a US$965 million loss in the three months ended Aug. 31 and revenue plunged to US$1.6 billion, down 49 per cent from this year’s first quarter and 45 per cent from last year’s second quarter.

Bill Kreher, a technology analyst with Edward Jones, said the biggest takeaway from BlackBerry’s second-quarter report on Friday was that the actual results were in line with the estimates issued by the company last week.

“We didn’t see any surprises, and I believe that the Street treated that with relief,” Krehler said.

After the report, BlackBerry shares moved up 10 cents to $8.32 on the Toronto Stock Exchange near midday. On the Nasdaq, shares gained 11 cents to $8.06.

Part of the overall quarterly loss was a $934-million charge from unsold BlackBerry Z10 phones, the touchscreen device which hit shelves earlier this year and failed to catch fire with consumers.

The company recognized hardware revenue on about 3.7 million BlackBerry smartphones sold in the quarter, with “most” of the units being its older BlackBerry 7 devices.

The results also show BlackBerry (TSX:BB) drew down some of its cash reserves, considered a potential safety net. As of Aug. 31, BlackBerry had about US$2.6 billion of cash and investments, down half a billion dollars since May.

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