News by Andrew Kameka on Friday March 28, 2014.
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BlackBerry today announced its earnings for the fourth quarter of its fiscal year 2014. The Canadian manufacturer and service provider turned in predictably disappointing results, but not as disappointing as analysts had expected. BlackBerry generated $976 million in revenue, a 64 percent decline based on the same period last year and 18 percent less than it reported in the previous quarter.
What's most troubling for BlackBerry is that a common theme since BlackBerry 10 debuted last year has continued into 2014 - BB 7 phones outsell BB 10 devices by a very large margin. BlackBerrry sold 3.4 million smartphones last quarter, and 2.3 million were older BB 7 OS devices. The company is still sitting on a stockpile of unsold BB10 inventory and managed to sell only 1.1 million units.
CEO John Chen revealed today that BlackBerry will start another run of BlackBerry Bold devices "as long as there is new demand," meaning the gulf between BB 7 and BB10 will continue next quarter.
The good news is that BlackBerry fully expected to be in this situation and is ahead of schedule in its goal of lowering operating expenses. BBM and enterprise services are in healthier positions, so BlackBerry has a silver lining in its recovery efforts.source: BlackBerry
Andrew is based in Miami, Florida.