BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) revealed on Wednesday that it won’t be holding the earnings call this week, even though the company previously did planned for the conference. The Struggling handset maker will reveal its second-quarter financial results, as per the schedule, but is shying to talk about them owing to the recent offer to take the company private.
BlackBerry on Monday, revealed the agreement with a consortium led by Fairfax Financial Holdings, which valued the handset maker at $4.7 billion.
More details on results, next week
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) told in a statement “In light of the letter of intent agreement between BlackBerry and Fairfax Financial Holdings Limited that was signed and announced on Monday, September 23, BlackBerry has cancelled its second quarter earnings conference call and webcast that had previously been scheduled for Friday, September 27 at 8:00 a.m.”
BlackBerry further announced that more details of the second-quarter financial performance will be released next week along with Management’s Discussion and Analysis financial filings.
As per the deal between BlackBerry and Fairfax Financial Holdings, shareholders will receive $9 per share in cash, which represents a marginal premium over the price the shares were trading at the time of the announcement of the buyout proposal.
BlackBerry expecting huge quarterly loss
The Canadian firm announced last week that is expecting a loss of around $1 billion in the fiscal second quarter, which includes significant inventory charge and restructuring charges. BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) also told that the results may be well below the estimates. The company expected revenue to come in around $1.6 billion, which is well below the analyst’s estimate of $3.04 billion. In the last quarter, company shipped 3.7 million smartphones versus 6.8 million in previous one.
Last week, the smartphone maker also announced plans to slash 4,500 jobs, citing the layoffs to be a part of massive restructuring process to lower the expenditures by 50 percent by 2015.
BlackBerry, which once ruled the segment, is now on the verge of collapse owing to intense competition from rivals like Apple Inc. (NASDAQ:AAPL) and devices based on Google Inc (NASDAQ:GOOG) android platform. Shares of the company that were once trading at $145 in 2008 are now trading at 94 percent lower.
Network carriers also, it seems like are abandoning the sinking ship. T MOBILE US INC (NYSE:TMUS) recently revealed plans to pull BlackBerry devices from its US brick-and-mortar stores. T-Mobile’s executive vice president for corporate services, David Carey, told Reuters that BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) devices are not popular among shop customers, and, therefore, keeping them in retail stocks is inefficient.