BlackBerry reports net loss of $5.9bn for FY14

Revenue down 38% year-on-year, losses from unsold phones and restructuring

Tags: Blackberry (www.blackberry.com)Research In Motion
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BlackBerry reports net loss of $5.9bn for FY14 Chen said the results showed BlackBerry is moving to a more sound financial footing. (George Dipin/ITP Images)
By  Mark Sutton Published  March 29, 2014

BlackBerry has posted a net loss of $5.9bn for its financial year 2014.

Revenue for the year fell 38%, from $11.1 billion in FY13 to $6.8 billion this year.

Net loss from fiscal 2014 was $5.9 billion compared to $628 million in 2013. Losses included $934m on unsold Z10 smartphones, and restructuring costs of $512m.

The company made a smaller than expected loss in fiscal Q4, with a loss of $423m, down from $4.4bn in the previous quarter. Revenue for the fourth quarter of fiscal 2014 was approximately $976 million, down $217 million or 18% from approximately $1.2 billion in the previous quarter and down 64% from $2.7 billion in the same quarter of fiscal 2013.

Analysts said that the company was showing positive results in controlling costs, but that the losses still indicated the seriousness of the situation facing the company.

John Chen, executive chairman and CEO of BlackBerry said in a statement: "I am very pleased with our progress and execution in fiscal Q4 against the strategy we laid out three months ago. We have significantly streamlined operations, allowing us to reach our expense reduction target one quarter ahead of schedule. BlackBerry is on sounder financial footing today with a path to returning to growth and profitability."

Chen said he expects the company to have positive or neutral cash flows by the end of this financial year, the end of March 2015.

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