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BlackBerry (NASDAQ:BBRY) reported its Q1 results this morning and they were disappointing. Revenue of $3.1 billion showed sequential growth but fell below most estimates. Sales of 6.8 million devices lagged expectations. More importantly, the BlackBerry release gave a somber tone to Q2 outlook indicating that the market was "very competitive" and projecting a loss.

Particularly disappointing were sales of 2.7 million BB10 devices which, in the case of the Z10, was in the market for the full quarter. Given that some Q10 sales were included, the number of Z10's fell well below the 3 million plus figure many thought likely.

The company also pointed to Venezuelan foreign currency restrictions as the source of a major part of its quarterly loss contributing a charge of $72 million.

Notwithstanding the loss, BlackBerry generated positive cash flow in the period and now holds cash and equivalents of over $3 billion. I think the risk of BlackBerry's immediate demise is long past, and its future is likely to be a niche player in mobile with an enterprise audience.

Having said that, and despite being a long time fan of the company with a sizeable investment, I (like SA Author Mark McQueen) am throwing in the towel. I used to be a boxing champion and can recall the mixed emotions as the referee reached 7 or 8 in counting you out - do you get up and continue to take it, or call it a day. In those days, I kept getting up. Today, I am a bit wiser and I will call it a day.

I am closing out my long position on BBRY and will buy puts on any bounce. Until BBRY trades at less than half its breakup value, there are better investments.

Source: I Am Joining The Bears In The BlackBerry Bush