BlackBerry issues FQ2 warning, cutting 4,500 jobs

|About: BlackBerry Ltd. (BB)|By:, SA News Editor

BlackBerry (BBRY) expects to report FQ2 (Aug. quarter) revenue of $1.6B, far below a $3.06B consensus. The company also expects to report a GAAP op. loss of $950M-$995M, thanks largely to an inventory charge of $930M-$960M.

FQ2 smartphone shipments are pegged at 3.7M (mostly BB7 devices, due to BB10 channel inventories), down sharply from FQ1's 6.8M. FQ2 device sell-through is estimated to be 5.9M.

The company is cutting 4.5K jobs, or approximately 40% of its workforce.  It's looking to lower opex by 50% by the end of FY15 (ends Feb. '15). The WSJ recently reported major job cuts were pending.

BlackBerry's smartphone portfolio will go from 6 devices to 4 (two high-end, two entry-level). The company will focus on the enterprise and "prosumer" markets going forward.

Strategic alternatives are still being evaluated. Full FQ2 results arrive on Sep. 27.

Shares remain halted.