Struggling smartphone maker BlackBerry has posted a huge $4.4bn loss for the third quarter of its financial year 2014 as the firm faces a massive challenge to turn its fortunes around.
The financial posting comes amid an ongoing attempt to reshape the business, with a new CEO, John Chen, installed in November after the company failed to find a bidder to take it private.
In total, revenue for Q3 2014 was $1.2bn, down $380m from the last quarter, and down 56 percent from $2.7bn from the same period last year. This comes after a huge $934m write-down in Q2 for 2014 after the failure of its Z10 handset to make any traction in the crowded smartphone market.
However, despite the failure to make any inroads in the device market, the firm announced a five-year deal with Chinese manufacturer Foxconn to make new devices for the firm. CEO Chen said this proved the firm was not going to give up on the device market yet.
“This partnership demonstrates BlackBerry’s commitment to the device market for the long term and our determination to remain the innovation leader in secure end-to-end mobile solutions,” he said.
“Partnering with Foxconn allows BlackBerry to focus on what we do best – iconic design, world-class security, software development and enterprise mobility management – while simultaneously addressing fast-growing markets.”
One area of success for BlackBerry, though, remains its BlackBerry Enterprise Service 10 platform, which has 30,000 commercial and test servers installed at present. Chen said it hoped its BES platform, and other enterprise-focused products, would remain core to BlackBerry as it looks to improve its long-term prospects.
“With the operational and organisational changes we have announced, BlackBerry has established a clear roadmap that will allow it to target a return to improved financial performance in the coming year,” he said.
Despite the huge losses and ongoing uncertainity around the firm, Chen attempted to put a positive spin on the situation.
"The company is financially strong, has a broad and trusted product portfolio to work with, a talented employee base and a new leadership team dedicated to implementing our new roadmap," he said.
However, 2014 looks set to be the most challenging year for the firm yet after years of decline.
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