BlackBerry Slightly Beats Earnings, Though Still Loses $965 Million

Jacob Harper |

Battered Canadian smartphone maker Blackberry Ltd. (BBRY) née Research in Motion issued their second quarter earnings report on Sept. 27, and it was slightly better with analyst expectations. That is, it was just a tick above catastrophically bad.

The company had already warned that the report would show significant revenue losses, as their last ditch push into remaining relevant in the smartphone market with the Z10 tanked with customers.

But the poor earnings report was not the company’s biggest concern. BlackBerry declined to host the traditional post-earnings report conference call with major investors so they could resume talks with Fairfax Holdings Ltd. the Canadian investment firm that has signaled their intent to buy out BlackBerry and take them private.

BlackBerry posted a loss of $965 million, including items, notably writedowns concerning the failure of the Z10. The company is scrambling in the wake of the Z10 failure, and recently laid off some 4,500 workers. While they have a significant amount of cash in the bank, analysts predicted that the company would be out of cash and could face going under by this quarter next year.

However, it might not come to that at all, as Fairfax has offered to take the company private at around $9 a share. This would put the value of BlackBerry at around $4.7 billion.

For their second quarter 2013 earnings report, BlackBerry reported a net loss of $248 million (excluding items), or -$0.47 per share, versus the net loss of $229 million, or -$0.44 per share, from the same period a year ago. Revenue for the quarter was $1.6 billion, as compared to $2.29 billion from the previous year. Analysts were expecting a loss of -$0.49 per share on revenues of $1.62 billion. 

BlackBerry’s stock is up 1.13 percent to hit $8.04 a share. The stock was a favorite of shorters prior to the earnings call, with a float short of 31.79 percent.

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Companies

Symbol Name Price Change % Volume
BBRY BlackBerry Limited 7.83 0.20 2.62 5,321,869
RREIF Regal Rl Est Invt Tr Uts 0.26 0.00 0.00 0

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