BlackBerry (the company formerly known as RIM) recently posted its financial report detailing performance in the first fiscal quarter 2014. Unfortunately, it did not perform nearly as well as investors hoped. BlackBerry experienced increases in quarterly revenue and units shipped, but it still ended up with a hefty operating loss.
Specifically, at the end of fiscal Q1 2014, BlackBerry reported revenue of $3.1 billion with 6.8 million devices shipped and an operating loss of $84 million. The $3.1 billion in revenue is a 15% increase versus the previous quarter ($2.9 billion) and a 9% increase YoY (year over year). Despite the operating loss (which is actually an improvement over the $518 million operating loss in the previous year), BlackBerry still managed to ship 6.8 million units, which is 13% increase versus the previous quarter. BlackBerry did not detail how many of those devices where BB10 devices, but it is estimated to be 2.7 million of the 6.8 million devices shippped versus 1 million BB10 devices shipped in the previous quarter. At least BB10 is gaining some small amount of traction. Among those BlackBerry devices shipped in Q1'14, the company did state that it shipped 100,000 BlackBerry PlayBook tablets.
Speaking of the PlayBook, the company had to break its promise to users with the statement that it would not be providing an update for the tablets to its latest BlackBerry 10 operating system. The reason given was that the company ran into performance issued on the PlayBook hardware when attempting to get BB10 running, and because they were not able to get it running smoothly they are not giong to release any update after all.
Needless to say, investors where not pleased with the performance of the company or of BlackBerry 10 which (despite being an interesting mobile OS) has not caught on like many had hoped. Instead, the BlackBerry OS is reported to occupy fourth place in the market behind Android, iOS, and even Windows Phone. BlackBerry's stock price dropped as much as 26% following the release of the financial report, according to GSMArena.
According to the company, the following quarter will see improvements, but it will still be operating at a loss. BlackBerry will continue to forge ahead with BlackBerry 10 OS and the accompanying hardware. The company will further development of BlackBerry 10, BlackBerry Enterprise Services (BES) 10, and a cross-platform version of its BlackBerry Messenger (BBM) social messaging client. Handsets are going to be the focus with no new tablets. Finally, BlackBerry is going to continue focusing on cost cutting and company streamlining efforts to reduce overhead and other expenses.
The full financial report is available here on the BlackBerry website.
It is not all bad news. BlackBerry still has a fighting chance and I hope they can turn things around and make the new BlackBerry a success. What do you think about BlackBerry's performance so far this year/ Have you seen any BB devices being used instead of the typical iPhone or Android handset?