TORONTO — Shares of BlackBerry plunged more than 28 per cent in early trading after the smartphone maker's latest results fell short of analyst expectations and it warned that further losses were likely to come next quarter.
The Waterloo, Ont.-based company posted a first-quarter loss of US$84 million, 16 cents per share for the three months ended June 1, improved from a loss of $518 million or 99 cents per share a year ago.
But the adjusted loss from continuing operations was $67 million, or 13 cents per share, deeper than predictions of six cents per share profit, according to a poll of analysts by Thomson Reuters.
The company's shares fell $4.24 to $10.81 shortly after trading began on the Toronto Stock Exchange.
BlackBerry also said it has scrapped plans to offer an operating system update to its PlayBook tablet, signalling that the company plans to eventually clear the sales flop from its products entirely.
Missing from the results were specific sales figures for its new smartphone models, and subscribers fell by 4 million to 72 million, though the company says it will no longer provide them because they don't accurately reflect its business model.
The company says it shipped 6.8 million phones in the quarter a 13 per cent increase from a quarter earlier when its BlackBerry Z10 touchscreen phone sales were just getting underway.Revenue increased to $3.07 billion, up from $2.81 billion a year ago.
“During the first quarter, we continued to focus our efforts on the global roll out of the BlackBerry 10 platform,” chief executive Thorsten Heins said in a release.
The results were particularly weak in Latin America where the company says “foreign currency restrictions” in Venezuela negatively affected service revenues by $72 million.
Heins said he expects BlackBerry will book an operating loss in its second-quarter earnings results, due to heightened competition in the smartphone industry.
“The company will also continue to implement the cost savings and process-improving initiatives it started last year,” he added.
The Waterloo, Ont.-based company posted a first-quarter loss of US$84 million, 16 cents per share for the three months ended June 1, improved from a loss of $518 million or 99 cents per share a year ago.
But the adjusted loss from continuing operations was $67 million, or 13 cents per share, deeper than predictions of six cents per share profit, according to a poll of analysts by Thomson Reuters.
The company's shares fell $4.24 to $10.81 shortly after trading began on the Toronto Stock Exchange.
BlackBerry also said it has scrapped plans to offer an operating system update to its PlayBook tablet, signalling that the company plans to eventually clear the sales flop from its products entirely.
Missing from the results were specific sales figures for its new smartphone models, and subscribers fell by 4 million to 72 million, though the company says it will no longer provide them because they don't accurately reflect its business model.
The company says it shipped 6.8 million phones in the quarter a 13 per cent increase from a quarter earlier when its BlackBerry Z10 touchscreen phone sales were just getting underway.Revenue increased to $3.07 billion, up from $2.81 billion a year ago.
“During the first quarter, we continued to focus our efforts on the global roll out of the BlackBerry 10 platform,” chief executive Thorsten Heins said in a release.
The results were particularly weak in Latin America where the company says “foreign currency restrictions” in Venezuela negatively affected service revenues by $72 million.
Heins said he expects BlackBerry will book an operating loss in its second-quarter earnings results, due to heightened competition in the smartphone industry.
“The company will also continue to implement the cost savings and process-improving initiatives it started last year,” he added.
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