Blackberry loss swells to USD 670 mln after writedowns

News Wireless Global 23 JUN 2016
Blackberry loss swells to USD 670 mln after writedowns
BlackBerry recorded a net loss of USD 670 million for its fiscal first quarter to May, reversing a profit of USD 68 million a year ago. The company took a number of writedowns in the quarter, including USD 501 million on assets, USD 57 million on goodwill and USD 41 million on inventory. Gross profit halved to USD 154 million, as revenue fell to USD 400 million from USD 658 million a year ago. BlackBerry said adjusted EBITDA remained positive for the tenth consecutive quarter and should remain so over the full year. 

Cash flow should also be positive over the full year, after a cash burn of USD 65 million in Q1, and the company said its more efficient operating model should mean an annual adjusted net loss half what the market currently expects, at around USD 0.15 per share. The company ended the quarter with USD 1.3 billion in net cash. 

BlackBerry plans to continue to invest in its strategy of focusing on software and new market applications. Excluding IP licensing, software revenue more than doubled year-over-year in Q1, driven by its enterprise mobility, secure messaging and QNX embedded software businesses. Over the full year, software and services revenue is expected to grow over 30 percent. In Q1, it contributed 39 percent of total revenue, compared to 36 percent for 'mobility solutions', the hardware business which Blackberry said should soon be profitable at the operating level. 

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Mobile

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BlackBerry

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Global

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Financial figures, IT - applications, Handsets

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