BlackBerry expects $1bn Q2 loss [Asian News International]
(Asian News International Via Acquire Media NewsEdge) Washington, Sept. 21 (ANI): BlackBerry is reportedly expecting a quarterly loss of one billion dollars and has warned its shareholders of generating half the revenue it has been projected to.
The sinking smartphone company saw its shares go down to as much as 46 percent to below 6 dollars before bouncing back to 8.50 dollars.
Once a smartphone leader, the Canada-based BlackBerry is also expected to axe around 40 percent of its global workforce in a bid to find a suitor to acquire its business after lagging behind in the smartphone industry, dominated by Apple and Samsung, Fox News reports.
According to the report, the company, slammed by a pre-tax inventory charge of 930 million dollars to 960 million dollars, has projected a net operating loss of 950 million dollars to 995 million dollars for the second quarter.
BlackBerry also said that it plans to slash operating expenditures by about 50 percent by the end of the first quarter of 2015.
The company's CEO Thorsten Heins said that the company is implementing necessary operational changes to address their position in a maturing and more competitive industry, and to drive the company toward profitability.
The company recently announced a buyout of the business so as to revive from the slumping condition, however, the company is still struggling to find a potential suitor, though some private-equity firms have shown interest in buying parts of the business instead of acquiring it as a whole, the report added. (ANI)
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