Bankruptcy First, Then Buyout For BlackBerry Ltd (NASDAQ:BBRY)?
Today BlackBerry Ltd. (NASDAQ:BBRY) reported quarterly loss of around $1 billion as announced by the company last week. The company also said that it is expected to accept one of its biggest shareholder’s tentative offers of $4.7 billion to make it a private company.
BlackBerry Ltd. (NASDAQ:BBRY), said that its net loss for the 2Q13 which ended on August 31, 2013 was $965 million or $1.84 per share, while the revenue of the company fell down by 45% to $1.6 billion as compared to a year before.
The above mentioned loss includes a pre-tax non-cash liability of approximately $934 million against inventory and supply commitments for its new Z10 phone.
To focus on corporate and government customers BlackBerry Ltd. (NASDAQ:BBRY) is planning to reduce its workforce by more than one third or say around 4500 jobs, BlackBerry Ltd. (NASDAQ:BBRY) further said that it is not going to host the usual post results call for investors after signing a tentative $9 per share agreement to be acquired by Fairfax Financial, its largest shareholder, on Monday.
“We are very disappointed with our operational and financial results this quarter and have announced a series of major changes to address the competitive hardware environment and our cost structure,” Chief Executive Officer Thorsten Heins said in the earnings statement.
About BlackBerry (NASDAQ:BBRY)
Formerly known as Research In Motion (RIM) Limited, BlackBerry Ltd (NASDAQ:BBRY) is the global wireless solutions provider and is headquartered in Waterloo, Canada. In recent times its market share plunged to the rock bottom given its failure to respond to transition towards smartphone devices. In the U.S. smartphone market BlackBerry (NASDAQ:BBRY) reported the market share of just over 1% during the three months ended June 30, 2013 compared to 4% during the same period of 2012.