BlackBerry posted its official earnings report for its second fiscal quarter today, revealing a net loss of $965 million. The company sold around 3.7 million smartphones in the past three months to bring in $1.6 billion, but still lost almost a billion dollars overall, largely thanks to its massive inventory of unsold Z10 smartphones.
The struggling Canadian company launched its BB10 operating system with two new phones, the Q10, with its tactile QWERTY keyboard, and the all-touch Z10, which boasted a 4.2-inch 1280 x 768-pixel display and dual cameras. However, a lack of popular apps and a clear overestimation of public interest in the device led to what BlackBerry refers to as the “Z10 Inventory Charge” of $934 million.
At this point, BlackBerry appears to be hanging on by a thread as its stock price plummets and the company struggles to regain its footing. Waterloo may have found its savior in Fairfax Financial, however, which currently owns 10 percent of the company and intends to take the smartphone-maker private in a $4.7 billion buyout.