Blackberry reports $965m second quarter loss

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BlackBerry has reported a second quarter net loss of $965m (£600m) following a slump in sales.

The company warned investors last week that it would report a loss of up to a billion dollars, due to poor sales of its new smartphones.

It also announced 4,500 jobs cuts in a bid to stem those losses.

Earlier this week Blackberry agreed to be bought by a consortium led by Fairfax Financial, its biggest shareholder, for $4.7bn (£3bn).

Blackberry said it would continue to explore other options while negotiations with Fairfax continued.

The company’s financial problems came to a head this year following disappointing sales of its new Z10 smartphone.

Sales were so poor that Blackberry had to write off $934 million in the second quarter to account for the weakness.

Disappointment

Released in January – after many delays – the phone has failed to enthuse consumers.

The firm reported total sales of $1.6bn compared to $3.1bn in the same quarter of 2012, a near 50% fall.

“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 Thorsten Heins, Blackberry’s chief executive.

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