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BlackBerry Stock Tanks Following Poor Earnings Report

by Todd Haselton | June 28, 2013June 28, 2013 7:30 am PST

RIM CEO Heins holds up a prototype of the BlackBerry 10 smartphone at the Blackberry World event in Orlando

BlackBerry reported its fiscal first quarter 2014 earnings on Friday morning, which resulted in an immediate tank in the company’s stock price. The firm noted revenue of $3.36 billion for the quarter, up 15 percent from the last quarter, but an adjusted operating loss of $67 million or a loss of 13 cents per share.

The company had returned to profitability last quarter and Wall Street was predicting another profitable quarter following the global launch of the company’s BlackBerry Q10 and BlackBerry Z10 smartphones. Reuters said most analysts pegged a profit of 6 cents per share.

BlackBerry said it shipped 6.8 million BlackBerry units during the quarter and 100,000 BlackBerry Playbook tablets, but didn’t specify how many of those smartphone units ran its new BlackBerry 10 operating system.

“The smartphone market remains highly competitive, making it difficult to estimate units, revenue and levels of profitability,” BlackBerry said in its earnings release. “Throughout the remainder of fiscal 2014, the Company will invest in BlackBerry 10 smartphone launches, and the roll out of BlackBerry Enterprise Service 10, to continue to establish the new BlackBerry 10 platform in the marketplace.”

Shares of BlackBerry were trading at $10.48, down 27.62 percent at the time of publication.

Reuters BlackBerry

Todd Haselton

Todd Haselton has been writing professionally since 2006 during his undergraduate days at Lehigh University. He started out as an intern with...