Lackluster sales but yet the stock rises?
- This quarter marks the end of write downs and a significant chunk of the restructuring costs. It is clear that Chen is clearing the slate and setting groundwork to build upon.
And even with all of these write downs, they only bled $400 million cash and have enough to last 8 quarters at that rate.
Z10STL100-3/10.2.0.180312-20-13 11:08 AMLike 0 - Short covering! They realized BlackBerry isn't going out of business the stock will not reach $0 in the foreseeable future .
Posted via CB10jojo beaconsfield likes this.12-20-13 11:08 AMLike 1 - It's not just the US Media, even the KW Record which is BlackBerry's hometown newspaper reported a 4.4Billion dollar loss for BlackBerry this morning. Would be nice if the media in general did their research and homework and didn't just copy off the person beside them. Now everyone I know will be coming to me saying, "See, I told you BlackBerry was dead, they just lost 4.4 Billion Dollars, they will be out of business in 6 months..."Loc22 likes this.12-20-13 11:10 AMLike 1
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Lower revenue than forecast, higher losses per share, much lower quarterly shipments than the previous quarter...how is that better than expected?
It's even more pathetic when one considers that the Z10 was heavily discounted in this period to around half of its launch value. They couldn't even sell well at $200!
Also means the Z30 flopped. Expect a price slash on that model.
So, let's take stock
1. People seemingly still prefer the OS7 devices.
2. Z10 still struggling to sell well at bargain basement prices
3. Q5 seemingly dead in the water. Q10 not selling well
4. Z30 selling poorly (as expected)
Yes, I'd say the BBM and Enterprise stuff IS the positive news today.12-20-13 11:13 AMLike 2 - This quarter marks the end of write downs and a significant chunk of the restructuring costs. It is clear that Chen is clearing the slate and setting groundwork to build upon.
And even with all of these write downs, they only bled $400 million cash and have enough to last 8 quarters at that rate.
This quarter BlackBerry has almost been in a holding pattern. If they want to turn things around, they are going to have to INVEST, and that means spending money.
They hare a partner to build hardware and to "control" inventories.
They appear to have a short term solution to the app problems in the form of a possible Andorid "fix".
But the marketing / and advertising issues are going to EAT a very BIG chuck of the cash that BlackBerry has. And much of it will be needed just to overcome the last three years and the failed launch of BB10. I could see them burn $1- $2 Billion real fast in just trying to get the consumers attention.12-20-13 11:14 AMLike 0 - It's not just the US Media, even the KW Record which is BlackBerry's hometown newspaper reported a 4.4Billion dollar loss for BlackBerry this morning. Would be nice if the media in general did their research and homework and didn't just copy off the person beside them. Now everyone I know will be coming to me saying, "See, I told you BlackBerry was dead, they just lost 4.4 Billion Dollars, they will be out of business in 6 months..."12-20-13 11:14 AMLike 0
- Nope. Not that.
By the time March/April comes around, $150 Android phones running Mediatek's new Octacore chipset will be sweeping the Asian sales charts. Not to mention Qualcomm's also jumping in with an LTE capable low cost chipset.
The new Mediatek SoC benchmarks close to 2013 flagships in performance, so it'll absolutely FLY with Android KitKat.
The Moto G was just a precursor. Google has firmly set its sights on the low end. This faces an uphill climb, to be honest.12-20-13 11:17 AMLike 0 - Looks like some people here are not happy with the stock price going higher on good news. Blackberry has a more then enough cash to turn this around . The storm clouds are all around but don't let them rain you out.BlackistheBerry likes this.12-20-13 11:17 AMLike 1
- It's not just the US Media, even the KW Record which is BlackBerry's hometown newspaper reported a 4.4Billion dollar loss for BlackBerry this morning. Would be nice if the media in general did their research and homework and didn't just copy off the person beside them. Now everyone I know will be coming to me saying, "See, I told you BlackBerry was dead, they just lost 4.4 Billion Dollars, they will be out of business in 6 months..."12-20-13 11:19 AMLike 0
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- Nope. Not that.
By the time March/April comes around, $150 Android phones running Mediatek's new Octacore chipset will be sweeping the Asian sales charts. Not to mention Qualcomm's also jumping in with an LTE capable low cost chipset.
The new Mediatek SoC benchmarks close to 2013 flagships in performance, so it'll absolutely FLY with Android KitKat.
The Moto G was just a precursor. Google has firmly set its sights on the low end. This faces an uphill climb, to be honest.
BlackBerry forever, haters never!stlabrat likes this.12-20-13 11:30 AMLike 1 -
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- But still sitting on 3.2 billion and entering five year deals, and increasing enterprise business, what is your issue with that?
There is good to take with the bad!
BlackBerry forever, haters never!notafanboy likes this.12-20-13 11:34 AMLike 1 - No it didn't lose $4.4B. It wrote down assets. The write down was based upon guesses as to the current value of those assets. Probably it wrote down a huge portion of the assumed value of its IP and other intangibles. This is bad, but cash flow is really the only thing that matters. And cash flow wasn't as bad as was feared.stlabrat likes this.12-20-13 11:38 AMLike 1
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From BlackBerry press release:
Company takes primarily non-cash, pre-tax charges of $4.6 billion associated with long-lived assets, inventory and supply commitments, and previously announced restructuring and strategic review process; GAAP loss from continuing operations of $4.4 billion, or $8.37 per share diluted,
compared with a GAAP loss from continuing operations of $965 million, or $1.84 per share diluted, in the prior quarter12-20-13 11:39 AMLike 2 - No it didn't lose $4.4B. It wrote down assets. The write down was based upon guesses as to the current value of those assets. Probably it wrote down a huge portion of the assumed value of its IP and other intangibles. This is bad, but cash flow is really the only thing that matters. And cash flow wasn't as bad as was feared.techvisor likes this.12-20-13 11:39 AMLike 1
- No it didn't lose $4.4B. It wrote down assets. The write down was based upon guesses as to the current value of those assets. Probably it wrote down a huge portion of the assumed value of its IP and other intangibles. This is bad, but cash flow is really the only thing that matters. And cash flow wasn't as bad as was feared.
Z10STL100-3/10.2.0.1803jojo beaconsfield likes this.12-20-13 11:40 AMLike 1 -
Per the standards, BlackBerry lost over $4B because their inventory and other assets are worth less than they previously thought. That counts and that is real, even if it isn't cash.
So the "press" is reporting BlackBerry's loss in the same way BlackBerry themselves reported their loss by accepted accounting standards.12-20-13 11:41 AMLike 6 - Seriously Dave, do you take obtuse training?
From BlackBerry press release:
Company takes primarily non-cash, pre-tax charges of $4.6 billion associated with long-lived assets, inventory and supply commitments, and previously announced restructuring and strategic review process; GAAP loss from continuing operations of $4.4 billion, or $8.37 per share diluted,
compared with a GAAP loss from continuing operations of $965 million, or $1.84 per share diluted, in the prior quarter
Z10STL100-3/10.2.0.180312-20-13 11:42 AMLike 0 - There are international standards for accounting that you can't just dismiss because you don't like them. Cash balance is only one metric in the financial health of a company. Investors and banks need to know the overall picture, which is why these standards exist.
Per the standards, BlackBerry lost over $4B because their inventory and other assets are worth less than they previously thought. That counts and that is real, even if it isn't cash.
So the "press" is reporting BlackBerry's loss in the same way BlackBerry themselves reported their loss by accepted accounting standards.
Z10STL100-3/10.2.0.180312-20-13 12:03 PMLike 0 -
You just can't redefine accounting to look only at cash. Their GAAP loss was $4B+. Look up the meaning of GAAP.12-20-13 12:10 PMLike 5 - It is that with Chen there is a consistent decision making, and the most important now we all know what is BB trying to do, before this it wasn't clear Prosumer vs Consumer, tool vs toy, now we understand BB will focus on software and services, will make a very few models of devices for corporate clients (big corporations and governments), will make low tier devices outsourcing Foxconn, it is clear that we all BB fans will be able to buy a BB device the low tier foxconn or the mid high tier BB but maybe you won't find them in a showcase. With this they show the market they are here to stay and they have assumed they can't fight Apple and Google but they have defined their position in the market, they have defined their strategy, and the most important that they have a business that viable to be profitable.
On the other side it seems that they have been able to have a steady growth of BBM users so this may suggest the market that BB will have a new monetizing source soon.
At the end, even the financial results are bad, and they were expected this way maybe a little bit better or a little bit worst but they seem to have been effective controlling the cash burn and cutting costs, so the trend may show that in a year or a year and a half they may stop burning cash and start with profitability if they keep the pace they have now.
Summarizing I guess the market is getting convinced that there is not only a chance for BB to succeed but that they have found the way, I'm not expert in company valuation but the price of the stock now won't be a bet about the BB Bankruptcy but about the timeframe of the rebound of the company and the final size it will have when that happens, how many quarters more of shrinking?12-20-13 12:20 PMLike 0
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Lackluster sales but yet the stock rises?
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