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Blackberry posts another severe loss

Blackberry CEO Thorsten Heins will leave the firm as a result of the transaction with Fairfax Financial Holdings

Struggling Canadian handset maker Blackberry has posted a $169m operating loss for 2Q13, with financial traders wiping off a whopping $2.1bn of the firm’s value as a result.

The firm generated $3.1bn in revenues over the three months ending June 1, 2013, a 9.3 per cent increase on the $2.8bn generated in 2Q12. However, cost of sales were also up by four per cent year on year to reach $2.03bn from $2.02 a year earlier.

“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 of BlackBerry. “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.”

Heins added that over the next three financial quarters the firm expects to increase its investment to support the roll out of new products and services.

The firm added that the smartphone market remains highly competitive, and blamed this for the difficulty in estimating future units, revenue and levels of profitability.

It said that throughout the remainder of 2014, it plans to invest in BlackBerry 10 smartphone launches, and the roll out of BlackBerry Enterprise Service 10, to continue to establish the new BlackBerry 10 platform in the marketplace. It will also invest resources to evolve BlackBerry Messenger into a cross platform mobile social messaging application.

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