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BlackBerry Little Changed Despite Ugly Earnings

NEW YORK ( TheStreet) -- BlackBerry's (BBRY - Get Report) earnings were just as bad as feared and the end of the company as a public entity seems closer than ever.

For the fiscal second-quarter, on a GAAP basis, BlackBerry lost $1.84 per share on $1.6 billion, selling 3.7 million smartphones. It ended the quarter with a cash balance of $2.6 billion, as the company continues to bleed cash.

The Waterloo, Ontario-based company pre-announced earnings last week. The company said it was getting out of the consumer business and laying off 4,500 workers, as revenue and earnings estimates missed Wall Street consensus by approximately 50%.

"We are very disappointed with our operational and financial results this quarter and have announced a series of major changes to address the competitive hardware environment and our cost structure," said CEO Thorsten Heins in a press release before market open. "While our company goes through the necessary changes to create the best business model for our hardware business, we continue to see confidence from our customers through the increasing penetration of BES 10, where we now have more than 25,000 commercial and test servers installed to date, up from 19,000 in July 2013. We understand how some of the activities we are going through create uncertainty, but we remain a financially strong company with $2.6 billion in cash and no debt. We are focused on our targeted markets, and are committed to completing our transition quickly in order to establish a more focused and efficient company."

The company took a $934 million charge during the quarter for unsold BlackBerry Z10 phones, which were poised to compete with the Apple (AAPL) iPhone and Google (GOOG) Android devices.

The focus continues to be on the pending buyout, with Fairfax Financial Holdings, for $9 per share in cash.

Unfortunately, BlackBerry has canceled its earnings call with the pending buyout going on, so there will be no further comment from the company today.

Shares ticked higher in early Friday trading, gaining 0.63% to $8.00, well below the $9 per share off from Fairfax.

-- Written by Chris Ciaccia in New York

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