After carefully studying BlackBerry’s (BBRY) financial results released this morning and listening to the conference call, my conclusion is that the chances of BlackBerry being bought just dropped dramatically. A major support under BlackBerry shares has been the prospect of a buyout. Unless there is some new information, BlackBerry shares are likely to fall.
Here are the highlights of the earnings report:
• Revenue $3.1 billion, up 15% sequentially from the previous quarter
• North America revenue grows sequentially 30%, APAC revenue grows 35%, EMEA revenue grows 9%
• Shipments of 6.8 million smartphones, up 13% sequentially from the previous quarter
• GAAP loss from continuing operations of $84 million, or $0.16 per share
• Adjusted loss from continuing operations of $67 million, or $0.13 per share
• Cash flow from operations of $630 million
• Cash and investments balance of $3.1 billion
“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. 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.”
Traditionally, BlackBerry generated billions of dollars of revenues from network services. It was known that the transition to BB10 would reduce service revenues that were associated with legacy devices. However, the drop in service revenues is greater than my expectations. . …Read more at SeekingAlpha