BlackBerry disappointed Wall Street today as the Canadian company posted an $84-million (16 cents a share) loss in its fiscal first quarter, despite revenue rising nine percent to $3.1 billion.
It is a definite improvement over last year’s first quarter loss of $518 million (99 cents per share), but analysts were expecting the Waterloo, Ont firm to post a revenue of $3.36 billion (six cents per share).
Still, BlackBerry’s loss should not come as a surprise, because although the company is showing steady improvement, it did warn it would remain in the red in the first quarter.
The company sold a total of 6.8 million devices in the quarter, although BlackBerry did not break down the numbers to reveal how many of the sales were due to the new Z10 and Q10 Smartphones.
“During the first quarter, we continued to focus our efforts on the global roll out of the BlackBerry 10 platform,” said BlackBerry CEO Thorsten Heins in a statement. “We are still in the early stages of this launch, but already, the BlackBerry 10 platform and BlackBerry Enterprise Service 10 are proving themselves to customers to be very secure, flexible and dynamic mobile computing solutions.
“Over the next three quarters, we will be increasing our investments to support the roll out of new products and services, and to demonstrate that BlackBerry has established itself as a leading and vibrant player in next generation mobile computing solutions for both consumer and enterprise customers.”
BlackBerry said the “highly competitive” Smartphone market makes it difficult to forecast its profitability in the coming quarters, although the firm does expect to generate an operating loss in the second quarter.
“Throughout the remainder of fiscal 2014, the company will invest in BlackBerry 10 Smartphone launches, and the roll out of BlackBerry Enterprise Service10, to continue to establish the new BlackBerry 10 platform in the marketplace,” the company said in a press release.
Aside from BlackBerry’s new touchscreen Z10 and more traditional Q10, BlackBerry recently launched the Q5, a low-end Smartphone geared toward emerging markets. It has also been rumored that BlackBerry has plans to launch an all-touch, high-end device dubbed the A10.
“The company will also invest resources to evolve BlackBerry Messenger into a leading cross platform mobile social messaging application, and launch other revenue initiatives associated with new services and emerging mobile computing opportunities,” BlackBerry said in its release.
“The company will also continue to implement the cost savings and process-improving initiatives it started last year, in order to drive greater efficiency throughout the company, and redirect capital from these savings to areas of investment that will drive future revenue growth.”