BlackBerry has confirmed huge financial losses owing to the dismal performance of its Z10 smartphone, which has forced it to write-off $934m for its second quarter earnings of 2014.
In total, losses for the quarter totalled $965m, around £600m, after sales for the quarter fell 49 percent from the previous quarter, from $3.1bn to $1.6bn. This was also down 45 percent from the same quarter last year, when sales were $2.9bn.
Chief executive Thorsten Heins admitted the results were disappointing as sales of new devices had failed to help the company in any way.
"We are very disappointed with our operational and financial results this quarter and have announced a series of major changes to address the competitive hardware environment and our cost structure," he said.
Heins attempted to find some good news for the company by citing the rising number of potential BlackBerry Enterprise Service 10 (BES 10) customers it now has, having risen from 19,000 in July to 25,000 to date, including both commercial and test server installations.
"While our company goes through the necessary changes to create the best business model for our hardware business, we continue to see confidence from our customers through the increasing penetration of BES 10," he said.
"We understand how some of the activities we are going through create uncertainty, but we remain a financially strong company with $2.6bn in cash and no debt."
The dire financial performance from the company had been expected, with warnings last week and confirmation this week that 40 percent of its workforce will go. It also announced a possible sell-off to Fairfax Financial Holdings earlier this week in a bid to potentially take the company private.
It remains unclear if the deal with Fairfax will materialise, with the firm having offered $9 per share for the company, a far cry from BlackBerry's $220-per-share heyday in 2007.
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