The chief executive of troubled Canadian smartphone vendor BlackBerry has admitted his firm has ‘significant’ work ahead of it as it looks for improved financial performance in FY 2015.
BlackBerry reported Q3 2013 revenue of $1.2bn, compared with $1.6bn in the previous quarter – a drop of 24 per cent, and a significant 56 per cent from $2.7bn in the same quarter the previous year.
However the firm posted a $4.4bn GAAP loss from continuing operations, compared with a GAAP loss of $266m in the same quarter the previous year. Device sales also dropped, with 1.9 million smartphone devices sold in the quarter, compared with 3.7 million in the previous quarter.
The vendor said of those sold in Q3, approximately 3.2 million were BlackBerry 7 devices, meaning its shiny new z10 and Q10 devices launched this year did not quite have the desired impact on consumers.
John Chen, chief executive of BlackBerry, said: “The most immediate challenge for the company is how to transition the Devices operations to a more profitable business model.
“We have accomplished a lot in the past 45 days, but still have significant work ahead of us as we target improved financial performance next year. However, 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.”
In separate news the firm announced a five year strategic partnership with China-based manufacturer Foxconn, which will see the firm jointly develop and manufacture certain new BlackBerry devices and manage the inventory.
Chen added: “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.
“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 leveraging Foxconn’s scale and efficiency that will allow us to compete more effectively.”
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