It’s a known fact that Blackberry is going through tough times. Recently, the company announced their second quarterly report, which shows a loss of almost $965 million. The recent reports show that the quarterly revenue of the company fell by a whopping 49% to $1.6 billion from $3.1 billion last quarter, but that was not enough to offset the inventory of the failed Z10.
During the second quarter, the company sold almost 3.7 million handsets, but a majority of those were Blackberry 7 handsets. A few days back, the company also announced that Blackberry 9720 is the last Blackberry 7 device. During the call, the company did explain that the devices shipped during the quarter will not be recognized until they are sold to the customers.
“We are very disappointed with our operational and financial results this quarter and have announced a series of major changes to address the competitive hardware environment and our cost structure. We remain a financially strong company with $2.6 billion in cash and no debt. We are focused on our targeted markets, and are committed to completing our transition quickly in order to establish a more focused and efficient company,” said Thorsten Heins, the company’s president and CEO.
Earlier this week, the company signed a letter of intent to sell the business to Fairfax Holdings for $4.7 billion. However, it’s not a binding agreement, if Blackberry finds a better deal; the company can pull out of the current transaction by paying Fairfax $157 million as break-up fee.