BlackBerry has announced its earnings for the first quarter of 2014, and the results don’t bode well for the company.
Revenue for the quarter came in at $3.1 billion, which is up 15 percent from the previous quarter, but after all was said and done; BlackBerry actually lost $84 million in the quarter. Last quarter, the company recorded a profit of $94 million, though was coming off a series of layoffs and did not have the added expense of major device and platform launches.
The company shipped 6.8 million smartphones, which is up 13 percent from the previous quarter. Within its earning press release, BlackBerry did not include a breakout of BB10 shipments, indicated they may be less than stellar. That was proven to be true during the earnings call following the initial announcement.
The company said during the call that it has shipped just 2.7 million BlackBerry 10 smartphones (including the Q10 and Z10) in Q1 2014, which isn’t a good sign considering 1 million Z10 devices were shipped in the first three weeks of its availability, leading analysts to estimate 3 million Z10’s would be shipped in the quarter.
BlackBerry would not breakdown BB10 shipments between the Z10 and Q10. BB10 shipment numbers represent just 40 percent of smartphones shipped, meaning over half of the devices sent out the door were older and cheaper smartphones.
Q1 2014 marks the first full fiscal quarter that the BlackBerry Z10 has been available and the first quarter the Q10 has shipped in significant numbers to markets such as the U.K. and Canada. Both devices run the BlackBerry 10 operating system, which the company released earlier this year in an effort to make gains in the smartphone market.
Also during its earnings call, the BlackBerry made an announcement regarding its tablet offering, the PlayBook. CEO Thorsten Heins said the BlackBerry 10 operating system will not being coming to the PlayBook, citing “performance and user experience” issues. Heins did not elaborate on the long-term plans for the tablet.