Struggling smartphone maker BlackBerry on Friday reported a net loss of $965 million for the second quarter ended August 31, 2013 hit hard by inventory charge related to its latest offering Z10.
The Canadian handset manufacturer had posted a net loss of $235 million for the period ended September 1, 2012, it said in a release.
BlackBerry follows March-February as fiscal year.
It also cancelled its second quarter earnings conference call and webcast due to the letter of intent agreement between BlackBerry and Fairfax Financial Holdings on a $ 4.7 billion offer by Prem Watsa-led firm to acquire the handset maker.
“Revenue for the second quarter of fiscal 2014 was approximately $ 1.6 billion, down 49 per cent from $3.1 billion in the previous quarter and down 45 per cent from $2.9 billion in the same quarter of fiscal 2013,” it added.
“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,” BlackBerry President and CEO Thorsten Heins said.
While the company goes through necessary changes to create the best business model for its hardware business, BlackBerry continues to see confidence from customers through increasing penetration of BES 10, where it now has more than 25,000 commercial and test servers installed to date, up from 19,000 in July 2013, he added.In terms of revenue break-up, about 49 per cent came from the hardware business, 46 per cent for service and 5 per cent for software and other revenue.