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BlackBerry enters ‘red numbers’ in its second quarter by losing 40 million

The cybersecurity company BlackBerry recorded net attributable losses of 44 million dollars (40 million euros) in its second fiscal quarter, ended in August, compared to the ‘black numbers’ of 43 million dollars (39.1 million euros ) accounted for in the same period of the previous year.

The change in the net result corresponds to an increase in costs, which increased by 79.5% compared to those registered a year earlier, reaching 219 million dollars (199.1 million euros).

From that figure, sales, marketing and administration expenses grew by 24.5%, up to 132 million dollars (120 million euros), while the research and development (R&D) item rose to 62 million dollars (56.4 million euros), 21.5% more. Amortization costs were 48 million dollars (43.6 million euros), 37.1% more.

The turnover of BlackBerry between June and August advanced 16.2%, reaching 244 million dollars (221.8 million euros). By business segments, revenues from the Internet of Things (IoT) division decreased 2.9%, to 133 million dollars (120.9 million euros), while the Software licensing business grew 26.8%, to 71 million dollars (64.5 million euros).

The turnover of Cylance, a subsidiary of BlackBerry specialized in artificial intelligence, was 35 million dollars (31.8 million euros), which has no comparison with the previous period because the firm was acquired in November last year.

BlackBerry revenues hit a ceiling in 2011, when they stood at 19,907 million dollars (18,095 million euros). Thus, in the last seven years, the firm has observed a decrease in its turnover of 97%. During that year, the sale of devices represented more than 80% of its business, close to 16,000 million dollars (14,543 million euros).

In the first six fiscal months, the company recorded a cumulative net loss of 79 million dollars (71.8 million euros), equivalent to almost five times the ‘red numbers’ of the first half of the previous year, despite the fact that turnover grew by 16.1%, to 491 million dollars (446.3 million euros).

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