BlackBerry wound up taking a $934M inventory charge, largely related to the Z10 (set to be repositioned as a mid-range device), and a $72M charge related to its restructuring program. The company's pending job cuts guarantee larger restructuring charges are on the way.
The company's FQ2 hardware/services/software revenue breakdown was 49%/46%/5%, a major change from FQ1's 61%/36%/3%. EMEA revneue -37% Y/Y and 44% of total; North America -52% and 26% of total; Asia-Pac -28% and 18% of total; Latin America -62% and 13% of total.
Going into the job cuts, opex -4% Y/Y vs. rev. growth of -45%.
As previously disclosed, there was no CC. More financial details will provided in filings next week.
Wells Fargo is worried about BlackBerry's cash burn ($500M in FQ2), and thinks the company should sell assets such as its valuable real estate to raise cash.