Blackberry Shares Stumble

8:02 AM, Dec 20, 2013   |    comments
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Ailing smartphone maker BlackBerry reported another round of losses during its third quarter as it navigates a major transition after pulling away from a potential sale.

The company reported $1.2 billion in revenue in its third quarter, down from $2.7 billion the year before. BlackBerry reported a loss of $4.4 billion, while its adjusted losses from continuing operations hit $354 million, or 67 cents per share. Analysts polled by FactSet, on average, expect a loss of 43 cents per share on revenue of $1.66 billion.

Shares of BlackBerry tumbled nearly 7% in pre-market trading.

The new round of losses arrives as BlackBerry transitions to new leadership. This is the first quarterly report under CEO John Chen, who took over last month for Thorsten Heins. BlackBerry's management shakeup follows a decision to back off a possible sale of the company in favor of a $1 billion investment from Fairfax Financial Holdings.

"We have accomplished a lot in the past 45 days, but still have significant work ahead of us as we target improved financial performance next year," said Chen in a statement.

BlackBerry pinned hopes of a rebound on its lineup of BlackBerry 10 smartphones, but consumers failed to show interest in a market dominated by Apple's iPhone and Google's army of Android devices. Earlier this year, Microsoft's Windows platform vaulted past BlackBerry as the No. 3 mobile operating system.

For the quarter, BlackBerry sold 4.3 million smartphones, but the majority were older devices running the BlackBerry 7 operating system.

The company announced a five-year partnership with Taiwanese manufacturer Foxconn. The primary focus of their deal will be creating a smartphone for Indonesia and "other fast-growing markets" for next year.

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