The stock is down 27% in early trading following the earnings release for the three months ending June 1 that had something to disappoint everybody. Despite the splashy and long-awaited rollout of the BlackBerry 10 platform, Research In Motion (still the formal name, although it’s doing business as BlackBerry) sold fewer phones than it did in the period last year — and pulled the plug on its PlayBook tablet. Earnings fell short of analyst forecasts. And the company warned that its losses will continue into the current quarter, frustrating analysts who had predicted a profit. In fiscal Q1 Blackberry had a net loss of $84M, an improvement from the $518M loss in the period last year, on revenues of $3.1B, +9.4%. Analysts expected the top line to hit $3.4B. The adjusted loss at 13 cents a share contrast with forecasts for a 5 cent profit. The company reports that it sold 6.8M smartphones in the quarter, down from 7.8M last year, and just 100,000 PlayBooks. CEO Thorsten Heins says the company is “still in the early stages” of its BlackBerry 10 launch. “Over the next three quarters, we will be increasing our investments to support the rollout of new products and services and to demonstrate that BlackBerry has established itself as a leading and vibrant player in next generation mobile computing solutions for both consumer and enterprise customers.”
By DAVID LIEBERMAN, Financial Editor | Friday June 28, 2013 @ 10:46am EDTTags: BlackBerry, Research In Motion
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This article was printed from http://www.deadline.com/2013/06/blackberry-shares-plummet-as-new-phone-platform-fails-to-drive-turnaround/