[AfterHoursWelds]

Curious as to what the massive losses are from? Obviously it's from not selling enough phones.

But there is a massive write off on the books? That means that blackberry has a lot of unsold inventory on their hands?

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[ray689]

Yes that's what it is. Unsold phones.

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[Dave Bourque]

Chris Umis, article said that if you ignore the inventory write down they basically break even.

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[raysgrumpy]

So, if you ignore $1 billion of phones they can't sell, they broke even? That makes perfect sense and sounds like a solid business plan....

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[slipstream89]

writedown was for unsold Z10s

[m1a1mg]

Chris Umis, article said that if you ignore the inventory write down they basically break even.

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IF you ignore the inventory write-down? How in the world can you ignore the inventory write-down for almost A BILLION DOLLARS!!!!!

[Dave Bourque]

So, if you ignore $1 billion of phones they can't sell, they broke even? That makes perfect sense and sounds like a solid business plan....

Sent from my Nexus 4 using CB Forums mobile app

I didn't say it was a positive... Obviously they are going to change things around so that they can turn a profit and cut a lot on hardware production.

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[CHIP72]

Chris Umis, article said that if you ignore the inventory write down they basically break even.

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That sounds like the saying that if my aunt had balls, she'd be my uncle.

[Bold_until_Hybrid_Comes]

Add 55 million to that figure to make a cool one billion once Thorsten is ousted

[CHIP72]

Too bad Blackberry couldn't write down that $55 million that Heins is supposed to get if the company is sold.

[AfterHoursWelds]

Oh, so really they only lost $500 million because that is what the excess had is soon to be worth.

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[anon(4268859)]

Guys, can we quit the bickering?

The $950 million "write-down" cancels out the 'profit' they made on everything else they sold, including ALL the BBOS7 devices and services, etc.

SO, "YES" they basically broke even. HOWEVER, "write-downs" and "losses" actually get accounted and recognized differently, so it's not a pretty situation 'on the books.'

NOW, can we ALL try and get along, please? This stand-offishness isn't going to help or resolve anything, and it sure as s#*t won't get the company back to profitability anytime soon.

Just my 2 cents from a penny-less country.
Cheers and Keep Moving!

[Warlack]

http://www.investopedia.com/terms/w/writedown.asp
Definition of 'Write-Down'
Reducing the book value of an asset because it is overvalued compared to the market value. A write-down typically occurs on a company's financial statement, when the carrying value of the asset can no longer be justified as fair value and the likelihood of receiving the cost (book value) is questionable at best.

Investopedia explains 'Write-Down'
Write-downs are typically reflected in a company's income statement as an above-the-line expense, thereby reducing net income. This, however, is not always a bad thing, since a write-down is simply a paper loss, which, since it lowers net income, will reduce a firm's tax burden. Companies will usually attempt to time large write-downs together, so they can "take a bath" in one reporting period with the hope of quickly recovering in the next period.


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[Dave Bourque]

I'm just repeating what Chris said in his article and the armchair CEOs start flexing their tits...

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[FocusedBerry]

I'm just repeating what Chris said in his article and the armchair CEOs start flexing their tits...

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Lol

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[weekengyip]

BBRY is dead.Focus will now be shifted to services and software. They should just load the remaining phones with Android and sell to emerging markets.

[Dave Bourque]

BBRY is dead.Focus will now be shifted to services and software. They should just load the remaining phones with Android and sell to emerging markets.

If they are dead why haven't they fired everyone and decide to make 0 phones instead of going from 6 to 4.

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[FSeverino]

I dont understand how this works.

so they take a $1b hit for unsold phones... but are they not going to still sell those phones at a loss?

so can they not make back 200m or something?

[SparkyBC]

The should have learnt from the playbook NOT to over produce. Guess they missed the memo. Sadly the z30 is probably going to suffer the same fate.

Management is obviously completely out to lunch! But that's nothing new.

[Triplell]

Dying*. FIFY

[bbhuh]

BBRY is dead.Focus will now be shifted to services and software. They should just load the remaining phones with Android and sell to emerging markets.

I'm android user, don't load android yet... how about load the bb10 and sell it in breakeven? Maybe $250 range? And when the masses taste and like it up the price....

Just my 2 cents LOL

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[project_x]

Here is a simple example it costs $100 to build a z10, and they build 2,000,000 extra (inventory cost, $200M). They think they are going to sell them at $700 a piece, they get entered into the books as an asset of $1.4B.
Sales are slow, so they still have 200,000 of them, but they adjust there asset value to $200 each, for a $1B writedown.

Show me the loss. It isn't real. If they still sell those BlackBerry's at $200 a piece, they make $200M

It is the same as the playbook write down. It is a paper loss.

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[greggebhardt]

Loss was from unsold and returned devices.

[CHIP72]

Here is a simple example it costs $100 to build a z10, and they build 2,000,000 extra (inventory cost, $200M). They think they are going to sell them at $700 a piece, they get entered into the books as an asset of $1.4B.
Sales are slow, so they still have 200,000 of them, but they adjust there asset value to $200 each, for a $1B writedown.

Show me the loss. It isn't real. If they still sell those BlackBerry's at $200 a piece, they make $200M

It is the same as the playbook write down. It is a paper loss.

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I guess Blackberry's employees can work for peanuts to ensure the company's BB10-related losses are only paper losses.

[project_x]

They generated $3.6b in revenue, employees were all paid, cash in the bank remained relatively unchanged. The only thing that changed was a received value of the goods they produced....
They broke even except for this write down. This write down didn't cost them a penny...

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