Despite $4.4 billion third quarter loss, BlackBerry Ltd's stocks rise by 16 per cent to close at $7.74 on the Toronto Stock Exchange on Friday.
The company has takns primarily non-cash, pre-tax charges of $4.6 billion associated with long-lived assets, inventory and supply commitments, and previously announced restructuring and strategic review process; the GAAP loss from continuing operations was $4.4 billion, or $8.37 per share diluted, compared with a GAAP loss from continuing operations of $965 million, or $1.84 per share diluted, in the prior quarter
Adjusted loss from continuing operations for the third quarter, excluding charges, was $354 million, or $0.67 per share diluted, compared with adjusted loss from continuing operations of $248 million, or $0.47 per share diluted, in the prior quarter.
The Canadian company's revenue was below expectations, at approximately $1.2 billion, down $380 million or 24 per cent from approximately $1.6 billion in the previous quarter and down 56 per cent from $2.7 billion in the same quarter of fiscal 2013.
During the third quarter, the company recognised hardware revenue on approximately 1.9 million BlackBerry smartphones compared to approximately 3.7 million BlackBerry smartphones in the previous quarter.
During the quarter, approximately 4.3 million BlackBerry smartphones were sold through to end customers, which included shipments made and recognized prior to the third quarter and which reduced the company's inventory in channel. Of the BlackBerry smartphones sold through to end customers in the third quarter, approximately 3.2 million were BlackBerry 7 devices.
The Ontario-based company also announced a new five-year partnership with Foxconn, the world's largest manufacturer of electronic products, to manufacture devices and manage the inventory.
''This partnership demonstrates BlackBerry's commitment to the device market for the long-term and our determination to remain the innovation leader in secure end-to-end mobile solutions,'' said John Chen, Executive Chairman and Chief Executive Officer of BlackBerry.
''BlackBerry is an iconic brand with great technology and a loyal international fan base,'' said Terry Gou, Founder and Chairman, Foxconn, adding that they are happy to be working with BlackBerry.
''We look forward to a successful strategic partnership in which Foxconn will jointly develop and manufacture new BlackBerry devices in both Indonesia and Mexico for new and existing markets,'' he added.
A year earlier, BlackBerry had a small profit of $14 million, or three cents per share, under standard accounting and $2.7 billion of revenue.
However, in the fourth quarter, the company anticipates maintaining its strong cash position and further reducing the operating expenses as it continues to implement its previously-announced cost reduction programme.