Seeking Alpha

BlackBerry core loss not as bad as feared

  • Revenue of $976M off 18% from FQ3 and off 64% from a year ago, with services revenue outpacing hardware (56% vs. 37%).
  • Cash and marketable securities of $2.7B as of March 1 is off from $3.2B three months previous.
  • CEO John Chen: "We have significantly streamlined operations, allowing us to reach our expense reduction target one quarter ahead of schedule."
  • Outlook: Company anticipates maintaining strong cash position and continuing to look for opportunities to streamline operations; targeting break-even cash flow by the end of fiscal 2015.
  • BBRY remains halted until 7:30 ET. Shares were ahead 4.3% before the earnings release.
  • Previously: BlackBerry beats by $0.46, misses on revenue
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Comments (13)
  • ELLAS
    , contributor
    Comments (2465) | Send Message
     
    BRAVO Chen.
    28 Mar 2014, 07:29 AM Reply Like
  • Corey Sommers
    , contributor
    Comments (957) | Send Message
     
    Word
    28 Mar 2014, 07:40 AM Reply Like
  • Kasteel Research
    , contributor
    Comments (167) | Send Message
     
    Nice gross margin, decreased expenses and good cash flow management.

     

    But no news of BES and BBM. I hope Chen has positive to say about it or the +7% won't last today

     

    Waiting for the CC eagerly.
    28 Mar 2014, 07:48 AM Reply Like
  • june1234
    , contributor
    Comments (3195) | Send Message
     
    not as bad as feared is usually good
    28 Mar 2014, 08:38 AM Reply Like
  • Ben Hanson
    , contributor
    Comments (508) | Send Message
     
    Yikes, down 64% from last year. Then again, I suppose they didn't launch any new phones this year, so it makes sense.
    28 Mar 2014, 10:56 AM Reply Like
  • QRM
    , contributor
    Comments (3) | Send Message
     
    Looks like Mr Chen is taking a page out of "Chainsaw Al's" book. Nice to cut expenses, but what about that top line shortfall?
    28 Mar 2014, 11:49 AM Reply Like
  • sfinvestor
    , contributor
    Comments (1137) | Send Message
     
    Shareholders of BBRY,

     

    I am deeply troubled how a 1,250M bond issuance made recently is measured at 1,683M to redeem. It seems like Prem Watsa stole money (382M) from the shareholders.

     

    In normal circumstance that is fine, but the deal is cut between PW, which also happened to be an insider or former Board menber of BBRY which happened to be 382M underpriced for the benefit of the PW consortium? That is shady as hell.

     

    Please write a seekingalpha article to broacast on mainstream media like Bloomberg/Yahoo which should give it some SEC, security lawyer attention.
    28 Mar 2014, 01:30 PM Reply Like
  • iBBB
    , contributor
    Comments (132) | Send Message
     
    Your bang on with this comment and no one else seems to have caught it. Of course the entire debenture is to insure he gets the scraps when BB goes belly up but this one is even sleazier. Mr. Watsa had only just excused himself from the board prior to these transactions.....hmmmmm? Remarkable that this man remains the Messiah to the BB throng. Havent heard much from him lately either....the silence is deafening!
    28 Mar 2014, 03:05 PM Reply Like
  • David653
    , contributor
    Comments (2337) | Send Message
     
    RE: "core loss not as bad as feared". Well I should hope not they sold everything before hand. Money sought by selling real estate should not be including, that real estate was owned by shareholders.
    28 Mar 2014, 02:16 PM Reply Like
  • abigchocoholic
    , contributor
    Comments (292) | Send Message
     
    wow, this is the third article that's pumped BBRY today. Now that the market has closed did you get your reality check?

     

    BBRY just burned through 500 million dollars in cash in one quarter! That's 1/2 the money Watsa loaned them! And it's going to happen again next quarter! This is downright scary. They are well on their way to bankruptcy. Face reality.
    28 Mar 2014, 04:53 PM Reply Like
  • LYogi
    , contributor
    Comments (2424) | Send Message
     
    I guess you didn't listen to the conference call where the CEO stated that they would be cash flow positive by the end of this year.

     

    Epic fail.
    28 Mar 2014, 05:00 PM Reply Like
  • iBBB
    , contributor
    Comments (132) | Send Message
     
    I listened intently and what he didnt say (or rather didnt know) was frankly astonishing!

     

    Todd Coupland - CIBC
    I wanted to know if you could tell us how many non-BlackBerry users your BES 10 systems are running now?

     

    John Chen - CEO
    I don’t know. I don’t have that number. Sorry about that. We’ll find that out and make sure that people get back to you.

     

    Wow....for a guy whos main focus is enterprise (MDM), you'd think he would know that.....even a guess would have been nice. Some? a few? its growing?
    My guess is None.

     

    The equally inept CFO had a similar answer when asked about Net cash being only 1 billion (not good when you're burning through 1/2 that per quarter).

     

    James Yersh - CFO
    I’m not sure I follow your math, Kulbinder. Maybe we can just take it off line and we’ll get back to you on that.
    29 Mar 2014, 01:03 PM Reply Like
  • LYogi
    , contributor
    Comments (2424) | Send Message
     
    they figured out the net cash question and yes they still have 2.7B on hand.
    29 Mar 2014, 02:29 PM Reply Like
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