BlackBerry Ltd To Report Q1 Earnings Result On June 19th

BlackBerry Ltd BBRY

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) revealed yesterday that it will announce its first quarter 2015 results on June 19th, 2014. A conference call is scheduled at 8 am ET.

Mixed Q4 results

For the fourth quarter of 2013, the analysts estimated the company would a post loss of $0.56 per share on revenue of $1.13 billion, and the company beat expectations by posting an EPS of -$0.08 on $976 million in revenue.

Revenue came in low, indicating 64% year over year decline from the fourth quarter of 2013 and a sequential decline of 18% from the third quarter of 2013. The cash balance of the company also slipped from $3.2 billion at the end of third quarter 2013 to $2.7 billion in the fourth quarter.

However, the company has been successful in cutting its expenses, which was the main reason for posting substantially lower loss than the expectations.

Also, the majority of devices it sold were based on OS7 rather than the new BlackBerry 10 OS. However, the company is still hoping to revive by narrowing down its operations and achieve break even cash flow by next year.

Drop in short interest

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) shares have witnessed a significant short interest decline, but the short interest is still relatively high. As per the report from NASDAQ, there were more than 10.13 million shares of the stock sold short at the end of April. On May 15, the number declined below 94 million shares, which totals to a 7.4% decline, but 19% of BlackBerry shares are still sold short.

BlackBerry survival in question

Just a week back, a report from IDC claimed that BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) global shipments will decline around 50% this year to around 9.7 million smartphones. Worldwide market share will also decline to 0.8% in 2014 and may even drop to 0.3% by 2018. the operating system of the company accounted for 1.9% of the market in 2013.

IDC said in a statement that there is doubt over the survival of BlackBerry in the future. “And with expectations that share will fall below 1 percent in 2014, the only way the company will be viable is likely through a niche approach based on its security assets.”

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s OS is lagging well behind rivals like Google’s Android operating system, which is dominating 80.2% of the global market this year. Android’s market share will slip to 77.6% in 2018, according to IDC estimates.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

6 Comments on "BlackBerry Ltd To Report Q1 Earnings Result On June 19th"

  1. disqus_TGFjISEksz | Jun 10, 2014, 7:26 am at 7:26 am |

    This article evaluates BBRY solely as a smartphone company, thereby entirely missing the point. Dumb article.

  2. DEVVVV, just like us, all understand that all the numbers are clearly written in the company balance sheet and accounting books for any accountant to see and understand. What Devvvv is saying, is that it is misleading and useless to us for companies to report their earnings publicly if such actions as the selling of assets modify the earnings reported. There should have a public market rule about that.

  3. Lets say you have land that values at $10 million and you sell it for $15 million. In your Income Statement, only the gain/loss of disposal will be reflected. So a loss of $3 million will rise up to a profit of $ 2 million (Ignoring Tax). However, in your statement of financial position (Balance Sheet), the Asset value will decrease by $10 million since you do not own that land anymore. A disclosure will be made in the financial reports regarding this disposal. For huge corporations, their revenues are worth in billions hence selling a piece of land for $10m would not account for much. The company can also not sell most of their Assets since they need to utilize those assets to operate and run the business

    Yet again, it is easy to manipulate Income Statement which is why all 3 financial statements should be considered since some values are offsetting the other values. Judging a company solely based on profits is useless. For small companies however, such as your auto shop, they would be heavily dependent on profits as you may not own as much assets that you do not need for production. Selling those assets would also not have significant affect on your profit/loss

  4. all I am saying is, if I was running a autobody shop and seeking investors and they ask if i had losses lasts year. It would not be fair to them if I said no because I sold over 90% of the bodyshops land. That I think would be considered misleading.

  5. It depends on the accounting standard the company is using. Usually the net value of fixed assets sold are recognised in ‘Other Income’ rather than the top line ‘Revenue’. However, it will beneficially reduce Cost of Sales since there will be a removal of depreciation of assets, which were charged into Cost of Sales.
    Tax returns are deducted from next years tax provision.

    Judging the Statement of Profit/Loss alone does not reflect profitability/liquidity. All three Financial Statements should be considered.

    “Revenue is vanity, Profit is sanity, ‘Cash Flow is reality”

  6. Does the selling of assets and tax returns allowed to go towards earnings? In my opinion, only earnings from product sold should be considered earnings. Why has the executives bio compensation not posted anymore?, it was at one time.

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