1. rim_investor's Avatar
    Q2 - $834 Million deferred revenue; this is a liability on their Balance Sheet which reduces shareholder equity. Q1 was only $346 Million. That's a 140% increase in one quarter. Q4 2013 was $543 Million. I'm not an accountant but what's up with a 140% increase in deferred revenue since June?

    Posted via my AWESOME Z10 on CB10
    09-30-13 12:59 PM
  2. diegonei's Avatar
    I'd listen to the latest Vector 13 podcast where Kevin addresses exactly that point.

    It's not like the business has been stale. It just doesn't look good when compared to Apple and Samsung.

    Posted via CB10
    09-30-13 01:18 PM
  3. kbz1960's Avatar
    With a name like yous i assume you've been hit hard or will be soon.
    Last edited by kbz1960; 09-30-13 at 01:29 PM. Reason: Auto incorrect
    09-30-13 01:26 PM
  4. anon1727506's Avatar
    Fact is they built too many devices and they are selling too slowly.... but the timing of this markdown is a little "convenient".
    09-30-13 02:27 PM
  5. Andrew4life's Avatar
    Fact is they built too many devices and they are selling too slowly.... but the timing of this markdown is a little "convenient".
    If carriers have started pulling devices from the shelf, then it isn't too fishy. It's just saying, carriers have given up, to move the inventory we'll have to mark it down.

    It's a coincidence.


    Posted via CB10
    09-30-13 03:00 PM
  6. allisos's Avatar
    Q2 - $834 Million deferred revenue; this is a liability on their Balance Sheet which reduces shareholder equity. Q1 was only $346 Million. That's a 140% increase in one quarter. Q4 2013 was $543 Million. I'm not an accountant but what's up with a 140% increase in deferred revenue since June?

    Posted via my AWESOME Z10 on CB10
    Its possible that some of the BES10 revenue is being bounced to the future... basically giving some customers more free time of "testing"
    just a thought
    09-30-13 03:08 PM
  7. OzarkaTexile's Avatar
    I'd listen to the latest Vector 13 podcast where Kevin addresses exactly that point.

    It's not like the business has been stale. It just doesn't look good when compared to Apple and Samsung.

    Posted via CB10
    Except now they have two platforms and declining revenue, declining carrier support, declining profit margins. Sure, they're selling a lot of low margin phones to developing markets. Kevin implies that BBRY is just the same sized fish in a bigger pond. This ignores reality. BBRY is losing money and market share. They can downsize to match revenue and continue to sell a lot of phones (almost none of them BB10) but they have no future.

    There is no going back to the enterprise market for handsets. BB7 is too old and BB10 is a failure. In the very near future, there will be no BB handsets for sale anywhere in the world.
    09-30-13 03:46 PM
  8. amazinglygraceless's Avatar
    There is nothing fishy here and I suspect you are getting hung up on the fact that, yes. it appears as a Liability on the Balance Sheet. It should.

    Essentially Deferred Revenue is money collected for products or services that have not yet been delivered or rendered. Basically, someone Pre-Paid.

    Because this money has been collected without anything being provided to the payer, AND, and this is the part to pay attention to, IF BlackBerry cannot make good on it's obligation that payer would be entitled to a refund. This is why DR is a Balance Sheet Liability. Until BlackBerry satisfies the obligation that made this revenue possible it is for all intents and purposes Unearned and is therefore not an Asset.

    The fact that Deferred Revenues increased is actually a good thing in that they (BBRY) not only contracted more sales of product, services, licensing or whatever BUT they also got paid upfront. I would have been more worried if that number was consistently declining.
    jfmtl87, sparkaction and badiyee like this.
    09-30-13 04:10 PM

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