Blackberry Announces Huge Loss for Second Quarter

The earnings results, which followed the preliminary ones of a week ago, showed that the struggling smartphone maker lost $965 million on $1.6 billion in revenue for the quarter ending August 31.

The company also said it was going through its cash at a very high rate of speed, as it attempts to close the tentative deal taking it private.

Last year during the same quarter, revenue for the company was $2.9 billion and the loss was $229 million or approximately 44 cents per share.

The loss turned out being on the low side of the estimated 47 to 51 cent ranged that had been warned of last week by Blackberry. The announcement last week came as it announced its plans to cut over 4,500 people from the workforce.

The majority of the results for the quarter tracked those announced last week, but Blackberry said its operations had consumed close to $136 million in cash, which compares to $630 million in cash from its operations during the previous quarter ending in May 31. The company also reported pretax expenses of $72 million for restructuring.

Thorsten Heins the company CEO announced he had been unhappy with the quarterly results, which were announced prior to the opening of financial markets on Friday. In early premarket trading, shares of Blackberry increased 10 cents to $8.05.

The company has struggled with sales that were much slower than originally expected of its Blackberry 10 new line of smartphones. The company is also facing more competition from Apple’s two new smartphones and from the different offerings from Samsung.

The filing by Blackberry on Friday follows its announcement on Monday of a tentative purchase worth $9 per share, in which the largest stockholder of the company, Fairfax Financial Holdings, would take the company, based in Canada, private.

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