The bar was set very low for BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) going into this morning’s earnings report, but the company didn’t even come close to analyst estimates. For the quarter ending Nov. 30, the company reported net losses of $8.37 per share or $4.4 billion. BlackBerry reported adjusted losses of 67 cents per share or $354 million. That’s compared to analyst expectations of 44 cents per share in losses and adjusted losses of 47 cents per share in the previous quarter.
Needless to say, shares of BlackBerry got killed in premarket trading, plunging more than 7% after the earnings report was released. Trading on BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) was halted prior to this morning’s report until 7:30 a.m. Eastern.
BlackBerry’s numbers look grim
BlackBerry took $4.6 billion in charges related to restructuring, long-lived assets, inventory, commitments to suppliers and the strategic review period the company recently completed, which ended with a failed go-private bid.
Revenue declined 24% to $1.2 billion during the quarter. That’s compared to expectations of $1.59 billion in revenue. In the same quarter a year ago, BlackBerry reported profits of $9 million or 2 cents per share and revenue of $2.7 billion.
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) sold 1.9 million smartphones during the November quarter. In the previous quarter, it sold 3.7 million. It exited the November quarter with $3.2 billion in cash on its balance sheet and said it expects to see its strong cash position continue through the current quarter. BlackBerry had $3.1 billion in cash at the end of the first quarter.
BlackBerry announces partnership with Foxconn
At this point most are wondering if anyone or anything will be able to save BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) from what seems like the inevitable. The company announced a partnership with Foxconn Technology Co., Ltd (TPE:2354) (OTCMKTS:FXFCOF). It is looking to the Apple Inc. (NASDAQ:AAPL) for help developing smartphones focused on consumers in Indonesia and “other fast-growing markets.” The deal will last for five years and is a joint development and manufacturing partnership.
The investor call this morning will be important as participants listen to what interim CEO John Chen has to say about their turnaround efforts.