The company has reported highly disappointing revenue for the second quarter of the year, with the EPS coming around at $0.13.
BlackBerry Corporation was seen to announce its earnings for the second quarter of fiscal year 2016 a week back in which the company reported earnings that disappointed analysts and investors all at the same time. The software company has already been going through a difficult time in the stock market and the sales of its smart phones have just been distressingly disappointing for the firm.
In the latest earnings report, the fall in the revenue was seen to come around at a shocking 47%, which shook the investors, as this was something that they were not expecting.
Not only this, but the gross margin that has been noted down by BlackBerry software business in the latest report has also seen a dip, coming down from 47% to 38%. As for the EPS that was received by the smartphone makers in the second quarter of the year, the numbers were recorded at $0.13, which showed just one of the major losses it faced in the financial three month period.
BlackBerry stock analysis quoted that the total revenue downgrade for the second quarter came around to be at a loss of 26%, in which the actual number received by the mobile phone company came out to be $490 million. The sales report has shown that so far all the revenue that has been generated was through the sales of its software products, as the hardware sales for the company were as disappointing as they could get.
Analysts at Seeking Alpha have given a ‘hold’ rating to BlackBerry stock. The higher margin revenue, as far as the software is concerned, was also seen to fall from 21% to 15%. Analysts, on an overall basis, have turned out to be highly shocked at how things have completely turned around for the company which the gross margins going down from 47% to 38%, showing how much the hardware and the software business has suffered in the past three month period.
In addition, this shows the pressure is being built up by rivals, such as Apple and Microsoft, who seem to be rolling out new software and hardware giving the giant a tough time on the index.
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