Blackberry released a statement on Friday saying that it expects to report an operating loss of almost $1 billion in the coming days. According to The Wall Street Journal , Blackberry overestimated the number of new phones it would sell and is facing an “inventory charge of as much as $960 million and a restructuring charge of $72 million.” Specifically, the company said that it would likely report a loss of $950 million to $995 million for the second quarter. Earlier this week we reported that Blackberry was planning to lay off up to 40 percent of its employees, taking the company from 12, 700 full-time employees to about 7, 620 employees. The WSJ reported today that 4, 500 people will be laid off, lower than earlier estimates. (Is that a silver lining we see?) The Canadian company also reported today that it only sold 3.7 million smartphones in the last quarter, most of which were older phones. To stem the bleeding, Blackberry said that going forward, its “smartphone portfolio will transition from 6 devices to 4; focusing on enterprise and prosumer-centric devices, including 2 high-end devices and 2 entry-level devices.” As Quartz writer Christopher Mims wrote , it’s probably too late for Blackberry to turn around its share of the enterprise market given the latest moves made by Apple and Samsung to get their hardware into the hands of businesspeople. Read 1 remaining paragraphs | Comments
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Blackberry warns of near-$1 billion loss this quarter
A major new patent bill, passed in a 117-4 vote by New Zealand’s Parliament after five years of debate, has banned software patents. The relevant clause of the patent bill actually states that a computer program is “not an invention.” Some have suggested that was a way to get around the wording of the TRIPS intellectual property treaty which requires patents to be “available for any inventions, whether products or processes, in all fields of technology.” Processes will still be patentable if the computer program is merely a way of implementing a patentable process. But patent claims that cover computer programs “as such” will not be allowed. Read 5 remaining paragraphs | Comments