[jic999]

Well BGR reports this, we need a Chris blog on what is the BlackBerry cash level !!

BlackBerry projected loss: $800 million in just one quarter | BGR



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[pmccartney]

I guess we will have some facts in a few days.

[Mr.Conviviality]

Brad needs to learn the difference between to and too, and to stop making headlines with other people's random assertions that they burnt through $800...

more uselessness from BGR...

[SirJes]

If it's true, are you really expecting better?
We all know this quarter is going to be bad, just gotta accept it, and look forward to a quarter where chen had a chance to make an impact

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[ElGusta]

I don't doubt the legitimacy, past media leaks that have revealed BB's true position have been bang on. This is in contrast to the continual lies perpetuated by the management team.

[eldricho]

Daaaang, if this is true it's much worse than I expected. Maybe another smaller write down together with all the laying off costs, gold parachutes and the usual cash burn?

I really wanna know how Chen is going to handle this Friday

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[berklon]

After all that's happened to this company, is this that hard to believe?

If it's incorrect, you can bet it won't be by much. Maybe it's 700M? Or 600M? Not good no matter how you slice it.

The mantra of "Blackberry has all this cash and no debt" was ridiculous then and even more so now. When a company releases products few are buying, resulting in huge drops in marketshare - they're either going to burn through their cash or increase their debts. Pick one. BB hasn't taken on extra debt as far as I know - so there goes the cash.

[lang007]

SMDH!!!!!!!!!!!

[cgk]

The original source:

Bernstein upgraded BlackBerry (NASDAQ: BBRY) from Underperform to Market Perform with a price target of $5.50. Analyst Pierre Ferragu remains cautious but he thinks downside is limited.

"As we expected, Fairfax's attempt to take out Blackberry has failed, driving the stock to all time lows. We believe the near term will be very challenging, and we model almost 800m burnt in this quarter alone," said Ferragu.

"However, our detailed analysis shows that the company has assets worth $6bn-$13bn. In this context, current price reflects a conservative SOTP valuation, with limited room for further decline in the stock price also including liquidation costs," he added. "We upgrade the stock to market perform, with a target price of $5.5, as we think that most of the trade is now behind us, while it is also too early to take a position on the potential success of the company's turnaround."

http://www.streetinsider.com/Analyst+Comments/UPDATE%3A+Bernstein+Upgrades+BlackBerry+(BBRY)+to+ Market+Perform%3B+Assets+Worth+$6-$13B/8980141.html

[LP_Rigg]

This really isn't a surprise is it? I would be surprised if their cash burn was less. It does not foretell anything and is not necessarily prescient of things 1, 2 years from now. There have been significant leadership changes as we all know. If Chen was holding pat on everything that was in place, leadership, strategy etc... then I would be significantly more concerned. This is not to say Chen will be successful, but given his inheritance I firmly believe they are prepared to have a high cash burn for a while. They don't realistically expect things to change exponentially in their favor for quite some time. I would guess they are looking at a minimum of 18 months out.

[SirJes]

This really isn't a surprise is it? I would be surprised if their cash burn was less. It does not foretell anything and is not necessarily prescient of things 1, 2 years from now. There have been significant leadership changes as we all know. If Chen was holding pat on everything that was in place, leadership, strategy etc... then I would be significantly more concerned. This is not to say Chen will be successful, but given his inheritance I firmly believe they are prepared to have a high cash burn for a while. They don't realistically expect things to change exponentially in their favor for quite some time. I would guess they are looking at a minimum of 18 months out.

And this is what I was saying in a better way lol

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[sk8er_tor]

I can't help wondering how much marketing they could've done with all these write-offs and losses. Shame.

[ibpluto]

we find out how much was burnt or not burnt Friday. The article clearly states Bernstein got that number through their models (just projections based on a lot of variables that are not or should not be known to them).

Could be less...could also be more. Either way, its just guessing at this point

[jojo beaconsfield]

If BB wasn't Canadian I could care less.They will burn tons of cash until they deserve ,to start making money again.I think with Chen and Prem a new BB will rise and so will it's cash.How many more people are going to be shown the door?I mean the big shots who thought BB was a candy store to collect a salary and not perform to earn it.

[bobshine]

Daaaang, if this is true it's much worse than I expected. Maybe another smaller write down together with all the laying off costs, gold parachutes and the usual cash burn?

I really wanna know how Chen is going to handle this Friday

Posted via CB10

Write down doesn't affect cash though. But the rest do.

Posted via CB10

[JonCBK]

If the cash reserves only decrease by $800 million that doesn't seem so bad. This and the next quarter are probably their worst quarters as they have to pay suppliers for unsold phones. Presumably they aren't ordering many more phones. They've let go a lot of people so operating costs should decrease. Selling some phones to remaining customer and getting subscription as well as enterprise service fees should be able to support a smaller blackberry.

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[SparkyBC]

The tax kick back will cover those losses. Which was around 1 billion expected from the govt once approved.

Blackberry was trying to get it fast tracked a few months ago.. Essentially the burn of cash means nothing as they will just replace it once refunded.

Even if they did lose that much it will be replaced with real cash soon. But they can't keep bleeding for to many more quarters as the free money will be less and less.

[Dunt Dunt Dunt]

The tax kick back will cover those losses. Which was around 1 billion expected from the govt once approved.

Blackberry was trying to get it fast tracked a few months ago.. Essentially the burn of cash means nothing as they will just replace it once refunded.

Even if they did lose that much it will be replaced with real cash soon. But they can't keep bleeding for to many more quarters as the free money will be less and less.

As I understand it the tax credit is an early refund of about $500 Million that BlackBerry would have gotten in the Spring anyway, and still will if the government does not approve it. It isn't really "new" money.

They are hoping to get a refund on close to another $500 Million in overpaid taxes based on their actual "dismal" sales. I guess this could be considered new money IF and WHEN it were approved.

But the key is BlackBerry has been cutting cost for a year now... how much more can they cut? If they are bleeding cash right now, what is going to stop it? And why could/would you expect next quarter to be different? Are unwanted and unadvertised BlackBerries going to suddenly fly off shelves at full retail prices? Are all of those "test" installations of BES10 going to suddenly decide to pay for the real thing?

Sept/Oct/Nov are GONE.... WHAT will make Dec/Jan/Feb different?

Not BB10.2.1.xxx and not BBMx neither have enough time at this point to make an impact. So the problem is if they lose $800 Million this quarter and do manage to cover it with either the FairFax or Tax money.... how much is left liquid for the next quarter?

[TioPepe78]

I guess we all know the next report will be bad, this is not news, but still I have to get one thing clear reading the article, they say the have burn the 1 Billion from Fairfax but the quarter they are going to report isn't the one ending on September 2013? Am I wrong? The money from Fairfax came later didn't it?

I guess the chances are that the quarter ending December may be better, with better prices in hardware and software, with a wider deployment of hardware (all 4 models and more spreaded worldwide), but still I don't think any good news will be seen in these reports for at least a year more, no turnaround is made in months.

[ryanza]

Didn't Chen predict something about the first 6 quarters being bad after he started with BlackBerry?

If Chen saw 6 bad quarters in Blackberry's future and he still took the job he must have seen something that he could do to swing the ship around?

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[Unbiased Tech]

This isn't exactly something I would call shocking or outrageous if it turned out to be true. Curious to see how the Z30 did though.

[Warlack]

We were guessing that the Z30 will be sold around 3 million times..... pretty much the CB userbase.... So far I have not seen a white Z30 I could buy and there is NO advertising and nothing there to actually make us believe that more than 3 million units will be sold.... So I guess that they have flogged around 1 to 1.5 million of them....

I could be wrong though.... It is sad to see no advertising, nothing tangible from this country here in the UK where BlackBerry support is still "big"

As Alicia stated: We are the Marketing arm....

I van easily believe the cash burn and wouldn't be surprised if we end up break even somehow....

As long as BlackBerry survives and we are able to nibble our user base higher, there is nothing to worry about.

With the damning 2 year contracts, I am hoping that BlackBerry will continue releasing at least 2 new phones a year and finally sell them directly from their website...

Posted via CB10

[app_Developer]

I guess we all know the next report will be bad, this is not news, but still I have to get one thing clear reading the article, they say the have burn the 1 Billion from Fairfax but the quarter they are going to report isn't the one ending on September 2013? Am I wrong? The money from Fairfax came later didn't it?

The results we expect on Friday are for the 3rd quarter of BlackBerry's FY2014. So that is the quarter ending Nov 30, 2013, and should include the new financing.

BlackBerry's fiscal year runs from March through February.

[LP_Rigg]

We were guessing that the Z30 will be sold around 3 million times..... pretty much the CB userbase.... So far I have not seen a white Z30 I could buy and there is NO advertising and nothing there to actually make us believe that more than 3 million units will be sold.... So I guess that they have flogged around 1 to 1.5 million of them....

I could be wrong though.... It is sad to see no advertising, nothing tangible from this country here in the UK where BlackBerry support is still "big"

As Alicia stated: We are the Marketing arm....

I van easily believe the cash burn and wouldn't be surprised if we end up break even somehow....

As long as BlackBerry survives and we are able to nibble our user base higher, there is nothing to worry about.

With the damning 2 year contracts, I am hoping that BlackBerry will continue releasing at least 2 new phones a year and finally sell them directly from their website...

Posted via CB10

And given us AT&T users can't even get the Z30 I don't expect positive numbers. Another indicator on Z30 sales figures is the dearth of accessories, particularly from some of the normal suspects who produced cases for the Z10

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[jic999]

Maybe Venezuela is paying back some of 250M


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