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BlackBerry posts US$238 million net loss

Loss amounts to 45 cents US per share


 

WATERLOO, Ont. — BlackBerry reported a US$238 million net loss in its fourth quarter, with much of the red ink attributed to costs related to restructuring and acquisitions.

The loss amounted to 45 cents US per share for the Waterloo-based technology company (TSX:BB).

After adjustments that exclude the restructuring and acquisition costs, the loss was three cents per share _ less than the analyst estimate of 10 cents per share.

Revenue was US$464 million, including a writedown of deferred revenue associated with recent acquisitions. Without that, it would have been US$487 million.

The revenue was below an analyst estimate of US$563 million, down from US$660 million a year ago, when BlackBerry had US$28 million of net income or five cents per share in the fourth quarter of 2015.

BlackBerry shares were down about seven per cent at C$9.80 on the Toronto Stock Exchange and US$7.51 on Nasdaq this morning.

BlackBerry has a lot riding on the Priv, its first Android-operating smartphone that it launched with much fanfare in November.

Some industry watchers anticipate BlackBerry will stop producing cellphones altogether if Priv sales are lacklustre.

When BlackBerry (TSX:BB) reported its third quarter earnings in mid-December, CEO John Chen said the device was well-received and the company would expand its distribution over the next several quarters.

The Priv is now available in more than 20 regions, most recently expanding to Japan.

The company’s other phones, which run on BlackBerry’s operating system, took a hit recently when WhatsApp announced its messenger service will not work on most BlackBerry platforms by the end of this year.

BlackBerry preceded its earnings report by unveiling on Thursday the BlackBerry Radar, a tracking system intended to help trucking companies and car fleet operators improve delivery times, reduce theft and lower costs.

BlackBerry’s revenue was down from US$660 million a year ago, when BlackBerry had US$28 million of net income or five cents per share.

 


 
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