[birdman_38]

Why does BlackBerry feel the need to keep stockpiling cash reserves? Obviously $3 bil will come in handy if they're ever on life support. But does it make them more attractive to a buyer?

Why not increase the advertising/marketing/promotion spends? They're in a great position to do so,

[Whyareallthegoodnamestaken]

Need cash for that

Posted via CB10

[CharlieHipHop]

$3 billion isn't as much as it sounds like. It's prudent of them to keep operating cash on hand, but I do agree that they need to kick up the marketing.

[mediadavid]

I agree.

First off, I don't understand, from an accounting perspective, how BlackBerry could INCREASE their cash reserves while recording a loss? Just transfer that money from reserve to bottom line and break even...

Second, what do they have planned with that money? I realise that planning for a rainy day is prudent...but this is the rainy day! If BlackBerry 10 fails then it doesn't matter about QNX automotive or mobile computing, it's game over. So commit to spending that money over the next year, or say 14 months. If in a years time BlackBerry 10 still hasn't caught on, well it doesn't matter how much they have in reserve at that point. If it HAS caught on, then they can both build up their reserve from a healthy position, and the market won't care about a little debt.

So what should they do with it? Well, IMO they should at least $1billion on marketing, over and above their planned spend. And a couple of new campaigns, I don't mind keep moving, but it hasn't worked so something new, a proper relaunch. And then a new big campaign in the winter for the A10 etc.

And then they should subsidise hardware. I'm not saying they should necessarily sell at a loss, that's not sustainable, but sell at cost for the time being. BlackBerry 10 needs to get out there.

What else? Two more things I think, which you can divide the last billion between. BlackBerry stores first, it's obvious that BlackBerry can't depend on carrier stores. Get some vertical retail going on. Second, invest in startups, get your fingers in as many pies as possible. A million here, a million there. Build a BlackBerry army, an army of ambitious young software developers who are grateful and committed to BlackBerry (you don't even need exclusivity, in fact openly go against that, what you'd really want is BlackBerry backing for the next big thing).

It's great that BlackBerry have a war chest. But the war is upon them! Bring out the big guns!

Posted via CB10

[bekkay]

First off, I don't understand, from an accounting perspective, how BlackBerry could INCREASE their cash reserves while recording a loss? Just transfer that money from reserve to bottom line and break even...

No, you can't do that. Your bottom line is all your revenues minus costs (COGS, period costs, admin, marketing, depreciation, interest, taxes, etc). Your cash is the account balance. You cannot simply transfer cash (transfer where?) and count it as REVENUE.

Note that the net income includes some non-cash items (e.g. depreciation). Furthermore, other assets (decrease) and liabilities (increase) can increase cash. That is, collecting accounts receivable will increase cash. So is borrowing more (or raising equity).

So all in all, it's absolutely possible to increase cash with a loss.

[RADEoN1337]

They didn't necessarily "lose" cash, when you post a loss, it means your earned money was actually less than previously anticipated... not that you didn't record any sort of profit. (I didn't look at the numbers, so I'm not sure exactly how much they lost)

[bekkay]

They didn't necessarily "lose" cash, when you post a loss, it means your earned money was actually less than previously anticipated... not that you didn't record any sort of profit. (I didn't look at the numbers, so I'm not sure exactly how much they lost)

Recording a loss doesn't have anything to do with anticipations.

[sparkaction]

I say use some of that money to offer anyone that purchases a new Q5 or A10, (when released) a meaningful credit on BlackBerry World. It is too late to offer this credit to current Z10 and Q10 users as the existing user base would be left out and pissed.

[jegs2]

I realise that planning for a rainy day is prudent...but this is the rainy day!

Indeed, and the suits at BlackBerry are walking around in a hurricane, denying the obvious and pointing out how sunny the day is.

[SubCamp]

I agree.

First off, I don't understand, from an accounting perspective, how BlackBerry could INCREASE their cash reserves while recording a loss? Just transfer that money from reserve to bottom line and break even...

Second, what do they have planned with that money? I realise that planning for a rainy day is prudent...but this is the rainy day! If BlackBerry 10 fails then it doesn't matter about QNX automotive or mobile computing, it's game over. So commit to spending that money over the next year, or say 14 months. If in a years time BlackBerry 10 still hasn't caught on, well it doesn't matter how much they have in reserve at that point. If it HAS caught on, then they can both build up their reserve from a healthy position, and the market won't care about a little debt.

So what should they do with it? Well, IMO they should at least $1billion on marketing, over and above their planned spend. And a couple of new campaigns, I don't mind keep moving, but it hasn't worked so something new, a proper relaunch. And then a new big campaign in the winter for the A10 etc.

And then they should subsidise hardware. I'm not saying they should necessarily sell at a loss, that's not sustainable, but sell at cost for the time being. BlackBerry 10 needs to get out there.

What else? Two more things I think, which you can divide the last billion between. BlackBerry stores first, it's obvious that BlackBerry can't depend on carrier stores. Get some vertical retail going on. Second, invest in startups, get your fingers in as many pies as possible. A million here, a million there. Build a BlackBerry army, an army of ambitious young software developers who are grateful and committed to BlackBerry (you don't even need exclusivity, in fact openly go against that, what you'd really want is BlackBerry backing for the next big thing).

It's great that BlackBerry have a war chest. But the war is upon them! Bring out the big guns!

Posted via CB10

Wow, you couldn't have said it any better

Posted via CB10

[cgk]

Why does BlackBerry feel the need to keep stockpiling cash reserves? Obviously $3 bil will come in handy if they're ever on life support. But does it make them more attractive to a buyer?

Why not increase the advertising/marketing/promotion spends? They're in a great position to do so,

You'd think so but relative to the big players in the sector, $3 billion is a tiny pile of cash when spilt across all of their activities.

[birdman_38]

Need cash for that

They have the cash.

[Whyareallthegoodnamestaken]

They have the cash.

Duh

Cannon to the right of them,
Cannon to the left of them,
Cannon in front of them
Volley'd and thunder'd;
"STORM"'d at by shorts from hell,
"BOLD"ly they typed and well,
Into the jaws of Death,
To teach them the meaning of
SELL LIKE HELL!

[The Aficionado]

I think BlackBerry is waiting for a full rollout of bb 10 and for a couple more updates to be out before their big marketing push.

There is no sense in promoting it so heavily when everyone would complain about it

Just based on the fact that bb10 is a newer os, I think it will start seeming really superior to the others by the time we're at 10.3 or. 4

Posted via CB10

[taylorblackberry]

You think 3 billion is a lot of money, so you practically want them to use it all up and go bankrupt

Posted via CB10

[The Aficionado]

Wait till we have longer than 30 day imap gmail, Google maps and other key apps, headless apps, maybe some new features like virtual mouse or panorama pictures

And a full stable of phones including the a10 and at least 10.2 or 10.3 on every provider. Then promote the phones and everyone who gets them will be happy

Posted via CB10

[rav813]

I love the armchair CEOs spending the cash early. This is a 3-stage process. So it makes sense to build cash in stage 1 (complete), begin spending in stage 2 (starting), reap benefits in stage 3.

Posted via CB10

[aboldcurve]

It would be nice to maybe offer a little $ to premier app makers (like top banking, social, utility etc) and maybe beefing up their employment. It seems to me their sales team needs to be revamped!

Posted via CB10

[deezy87]

Wait till we have longer than 30 day imap gmail, Google maps and other key apps, headless apps, maybe some new features like virtual mouse or panorama pictures

And a full stable of phones including the a10 and at least 10.2 or 10.3 on every provider. Then promote the phones and everyone who gets them will be happy

Posted via CB10

I have the option enabled to keep email forever...get with the program...

[southlander]

I agree.

First off, I don't understand, from an accounting perspective, how BlackBerry could INCREASE their cash reserves while recording a loss? Just transfer that money from reserve to bottom line and break even...

Violates standard accounting practices which BlackBerry as a public company is required to abide by. Even a private company would not operate that way unless they were lying to themselves or creditors. Which would be illegal.

[southlander]

Why does BlackBerry feel the need to keep stockpiling cash reserves? Obviously $3 bil will come in handy if they're ever on life support. But does it make them more attractive to a buyer?

Why not increase the advertising/marketing/promotion spends? They're in a great position to do so,

I personally believe they don't trust their own judgement at this point and are afraid to touch the cash. When you make so many bad moves running a business at some point it is natural to doubt your judgement. I think they have been hoping for a licensing deal / partner or buyer. And trying to hold some cash for that. But some hail Mary advertising blitz in the hopes of winning over market share is not in the cards in their eyes. At least that is my opinion.

Posted via BlackBerry 10

[birdman_38]

You think 3 billion is a lot of money, so you practically want them to use it all up and go bankrupt

Not at all. But BlackBerry does need to spend about a billion of it on marketing, advertising, sales and promotion so they can make it through Stage 2.

[cgk]

How much *does* BBRY currently spend on marketing and advertising?

[njblackberry]

One way BlackBerry kept their cash on hand while losing money - they slowed down paying their bills. Their Accounts Payable balance grew dramatically in the quarter.

[kevinnugent]

Having that cash also makes them a tastier buy out target. That's the real plan here, in my opinion.