BlackBerry Tumbles 28% as Smartphone Sales Fail to Impress

NEW YORK ( TheStreet) -- BlackBerry ( BBRY) lost more than one-quarter of its value Friday as shares tumbled after the smartphone maker fell well short of Wall Street estimates.

Blackberry plummeted 28% to close at $10.46.

The smartphone maker reported revenue of $3.1 billion, up from $2.8 billion in the prior year's quarter, but below analysts' forecasts of $3.36 billion. BlackBerry reported a loss from continuing operations of $84 million, or 16 cents a share, compared with a loss of $510 million, or 97 cents a share, in the prior year's quarter.

BlackBerry reported an adjusted loss from continuing operations of $67 million, or 13 cents a share. Analysts surveyed by Thomson Reuters were looking for earnings of 6 cents a share.

"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, in a statement. "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."

BlackBerry said that it shipped 6.8 million smartphones during the quarter, a sequential increase of 13%, and shipped around 100,000 PlayBook tablets. The Apple ( AAPL) rival added that its North America sales grew 30% sequentially, with the Asia-Pacific region climbing 35% and Europe, the Middle East and Africa (EMEA) gaining 9%.

Investors, however, were unimpressed by the company's numbers, pushing BlackBerry's shares down 17.96% to $11.88 before market open.

The Canadian gadget giant, which unveiled its much-delayed BlackBerry 10 technology in January, has seen its shares climb more than 21% this year.

--Written by James Rogers in New York.

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