WATERLOO – Canadian mobile icon BlackBerry this morning reported first quarter revenue of $3.1 billion, up 15% sequentially from the previous quarter, on shipments of 6.8 million smartphones, a 13% increase over Q4 of its last fiscal year.
North American revenue grew 30% over Q4, while Asia-Pacific revenue rose 35%, and the European region revenue grew 9%. However the company reported a quarterly loss of $84 million on the results (not what analysts were hoping, but quite a bit better than the $510 million loss the company reported in Q1 last year).
Latin America revenue declined 6% as Venezuela foreign currency restrictions negatively impacted $72 million of service revenue recognition in the first quarter, leaving company gross margins negatively impacted by 2%, added the company’s press release this morning.
The revenue breakdown for the quarter was approximately 71% for hardware, 26% for service and 3% for software and other revenue. During the quarter, the company also shipped “approximately 100,000 BlackBerry PlayBook tablets,” reads the press release, which can be seen here.
The total of cash, cash equivalents, short-term and long-term investments was $3.1 billion as of June 1, 2013, compared to $2.9 billion at the end of the previous quarter, an increase of approximately $200 million from the prior quarter. Cash flow from operations in the first quarter was approximately $630 million. Uses of cash included intangible asset additions of approximately $335 million and capital expenditures of approximately $83 million.
"During the first quarter, we continued to focus our efforts on the global roll out of the BlackBerry 10 platform," said Thorsten Heins, president and CEO. "We are still in the early stages of this launch, but already, the BlackBerry 10 platform and BlackBerry Enterprise Service 10 are proving themselves to customers to be very secure, flexible and dynamic mobile computing solutions. Over the next three quarters, we will be increasing our investments to support the roll out of new products and services, and to demonstrate that BlackBerry has established itself as a leading and vibrant player in next generation mobile computing solutions for both consumer and enterprise customers."
The company also added: “the smartphone market remains highly competitive, making it difficult to estimate units, revenue and levels of profitability. Throughout the remainder of fiscal 2014, the company will invest in BlackBerry 10 smartphone launches, and the roll out of BlackBerry Enterprise Service 10… (and) invest resources to evolve BlackBerry Messenger into a leading cross platform mobile social messaging application, and launch other revenue initiatives associated with new services and emerging mobile computing opportunities,” says the release.
“Based on the competitive market dynamics and these investments, the company anticipates it will generate an operating loss in the second quarter. The company will also continue to implement the cost savings and process-improving initiatives it started last year, in order to drive greater efficiency throughout the company, and redirect capital from these savings to areas of investment that will drive future revenue growth.”
www.blackberry.com
