Home / / BlackBerry reports net loss of $5.9bn for FY14

BlackBerry reports net loss of $5.9bn for FY14

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

BlackBerry reports net loss of $5.9bn for FY14
Chen said the results showed BlackBerry is moving to a more sound financial footing.

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.

Follow us to get the most comprehensive IT business news delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.