BlackBerry Slides After Posting Dismal Quarterly Results

NEW YORK ( TheStreet) -- BlackBerry ( BBRY) announced Friday a massive $4.4 billion third-quarter loss, much wider than analysts had predicted.

BlackBerry shares were falling 1.4% to $6.16 in early trading on Friday.

In his first earnings call, new interim Ceo John Chen also announced a manufacturing deal with China's Foxconn Technology Group.

BlackBerry said it sold only 1.9 million smartphones in the third quarter most of those running on Blackberry's older BB7 operating system. Paltry sales of its newer Z10 and Q10 devices with the BB10 OS accounted for $2.9 billion of its total loss.

The $4.4 billion loss for the quarter ended Nov. 30 translates to $8.37 a share. The losses were blamed on $4.6 billion of charges related to restructuring and the company's strategic review process. In the year-earlier period, BlackBerry posted earnings of $14 million, or 3 cents a share. 

On an adjusted basis, BlackBerry lost $354 million, or 67 cents a share, in the latest third quarter. A consensus of analysts had predicted a loss of 44 cents. Revenue of $1.2 billion also was disappointing. Analysts were looking for revenue of near $1.6 billion, less than last year's $2.7 billion.

BlackBerry reported it has $3.2 billion in cash at the end of the quarter

The real bright spot for the company has to be the initial acceptance of its new BBM (BlackBerry Messaging) apps for Apple ( AAPL) iOS and Google ( GOOG) Android devices. The company said there are now more than 20 million new users of the service boosting the worldwide total to 80 million each month.

Chen said a new five-year manufacturing deal with Foxconn will allow both companies to do what each does best. For BlackBerry, that means focusing on design and software. As for its new partner, "Foxconn's scale and efficiency will let us compete more effectively."

Foxconn will reportedly build the new phones in Mexico and Indonesia. BlackBerry said it will  target the new devices to fast-growing, developing market segments which are still friendly to the brand.

-- Written by Gary Krakow in New York.

To submit a news tip, send an email to tips@thestreet.com.

If you liked this article you might like

Johnson & Johnson, STMicroelectronics: 'Mad Money' Lightning Round

Johnson & Johnson, STMicroelectronics: 'Mad Money' Lightning Round

It's a Flash Sale!: Cramer's 'Mad Money' Recap (Wednesday 1/31/18)

It's a Flash Sale!: Cramer's 'Mad Money' Recap (Wednesday 1/31/18)

Thought You'd Never Buy Another BlackBerry? Think Again

Thought You'd Never Buy Another BlackBerry? Think Again

Pandora Sells Off; Unemployment Numbers Aren't as Rosy as They Seem -- ICYMI

Pandora Sells Off; Unemployment Numbers Aren't as Rosy as They Seem -- ICYMI

Closing Bell: LIVE MARKETS BLOG

Closing Bell: LIVE MARKETS BLOG