BlackBerry Ships 1 Million Z10 Phones In Q4, Reveals Q4 Profit
BlackBerry announced their Q4 and year-end results for fiscal 2013. In what was a year of turmoil, job losses and limited device releases, BlackBerry declared Q4 a profit of $98 million (19 cents a share), but revenues were $2.7 billion, down 36% ($4.2 billion) when compared to Q4 2012. BlackBerry noted that they shipped about 6 million BlackBerry smartphones and approximately 370,000 BlackBerry PlayBooks.
This quarter ended March 2, 2013 and BlackBerry launched the new BlackBerry 10 OS and the BlackBerry Z10 in a few countries within this timeframe. Included in the 6 million smartphones shipments were 1 million BlackBerry Z10 devices. The worldwide BlackBerry subscriber base is now sitting at 76 million, down from 79 million last quarter.
Thorsten Heins, President and CEO of BlackBerry said “With the launch of BlackBerry 10, we have introduced the newest and what we believe to be the most innovative mobile computing platform in the market today. Customers love the device and the user experience, and our teams and partners are now focused on getting those devices into the hands of BlackBerry consumer and enterprise customers… We are also excited about the new, dynamic culture at BlackBerry, where we are laser-focused on continuing to drive efficiency and improve the Company’s profitability while driving innovation. We have built an engine that is able to drive improved financial performance at lower volumes, which should allow us to generate additional benefits from higher volumes in the future.”
- Revenue of $2.7 billion
- GAAP income from continuing operations of $94 million, or $0.18 per share diluted
- Adjusted income from continuing operations of $114 million, or $0.22 per share diluted
- Gross margin of 40% driven by higher average selling prices and hardware margins
- Shipments of 6 million smartphones, including approximately 1 million BlackBerry 10 units
- Subscriber base of approximately 76 million
- Cash flow from operations of $219 million, cash and investments balance of $2.9 billion
The Company will be increasing its marketing investment in the first quarter of fiscal 2014 in support of the global launch of BlackBerry 10. Including the anticipated 50% sequential increase in marketing spending, the Company believes it will approach breakeven financial results in the first quarter based on its lower cost base, more efficient supply chain, and improved hardware margins.
Things looking better for BlackBerry now?
[Mobile Syrup, Market Wire]