(MENAFN- ProactiveInvestors - N.America) Cell phone maker BlackBerry Limited (TSX:BB) recorded a US$670mln net loss in the first quarter of its 2017 financial year, compared to a US$68mln profit a year earlier.
The firm - once a dominant force in the mobile phone market - reported revenues of US$400mln, well below market expectations of around US$470mln.
The poor numbers for the three months to 31 May mean that BlackBerry has now endured three consecutive quarters of losses.
The loss which amounts to US$1.28 per share includes a US$501mln write-down of some of the smartphone company''s assets, as well as a further US$23mln of restructuring costs.
The first quarter results come less than a day after BlackBerry chief executive, John Chen, claimed that the company''s primary objective is to make its smartphone business profitable during the current financial year.
BlackBerry has previously given guidance that it needs to sell 3mln phones at US$300 to break even.
To put that in perspective, Apple Inc. (NASDAQ:AAPL) sold nearly 75mln iPhones in the first quarter of 2015 alone.
Chen has said before that the company will stop making smartphones if that side of the business remains unprofitable.
The other arms of the business software and service operations fared a little better, and Chen said the plan was to grow the software division by nearly a third over the course of this year.
Shares in BlackBerry closed at C$8.63 on Wednesday.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.