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Blackberry officially announced $965m second quarter loss

BlackBerry Results

BlackBerry Results

Blackberry, the Company formerly Known As RIM recorded revenue of $1.6bn in Q2, down 49 per cent from the $3.1bn it banked in Q1. It said 5.9m BlackBerrys were sold, almost all of which were devices running its venerable BB OS 7 – and it will not recognise revenue from sales of devices that use its new BB OS 10.

Instead, it’s taking an inventory charge of $934m to reflect the true asset value of its new yet unsold Z10 touchscreen handsets. As a result, BlackBerry made a loss of $965m in the quarter. Little detail was added beyond what it had disclosed in an unexpected pre-earnings statement last Friday.

Earlier this week Blackberry agreed to be bought by a consortium led by Fairfax Financial, its biggest shareholder, for $4.7bn.

Blackberry said it would continue to explore other options while negotiations with Fairfax continued. The company’s financial problems came to a head this year following disappointing sales of its new Z10 smartphone.

Shares of BlackBerry were up modestly in pre-market trading following the release. But the stock is down more than 30% so far in 2013 and nearly 90% over the past five years.

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