BlackBerry released its third quarter fiscal 2014 earnings on Friday, and they aren’t pretty.
The company reported a net loss of $4.4 billion for the quarter and a huge drop in revenue. BlackBerry’s third quarter revenue was $1.2 billion, down 24 percent from the $1.6 billion it posted during the fiscal second quarter. Worse, its revenue is down 56 percent from the same time period last year when it posted $2.7 billion in revenue.
It’s clearer than ever that BlackBerry 10 and the latest devices have been weighing down the ship. BlackBerry said it sold a total of 4.3 million smartphones during the quarter, but of those sales about 3.2 million were devices that run the company’s older BlackBerry 7 operating system. Those phones were likely sold in emerging markets. To put this all in perspective, Samsung sold 20 million Galaxy S4 devices in two months.
Even still, BlackBerry will continue to push on against the tide. It announced a new five-year deal with Foxconn, which will build new BlackBerry smartphones at plants in Mexico and Indonesia. “We’re no longer worrying about whether we’re going to be around,” BlackBerry CEO John Chen said. “We’re ready to fight back.”
The company will continue to try to cut costs during the fourth quarter, which probably means additional layoffs are coming.