BlackBerry cancels call to discuss its results

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By Ian Austen, The New York Times | Updated: 26 September 2013 13:23 IST
The management of ailing smartphone maker BlackBerry canceled a conference call scheduled for Friday to discuss the company's quarterly financial results.

Although BlackBerry said Wednesday that those results would still be released, it added that the call with analysts and investors was called off because of a conditional and tentative bid for the company announced by its largest shareholder, Fairfax Financial Holdings, on Monday.

The company also said that a written discussion about its financial condition from its management, which is normally released with the quarterly results, would not be available until next week.

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On Friday, BlackBerry issued a prerelease announcement indicating that it would post a loss of about $1 billion for the quarter and revenue well below analysts' expectations. Both are a result of the apparent failure of a new line of BlackBerry 10 phones that were supposed to restore the company's fortunes Consumers appeared to be indifferent to the phones.

The company also announced Friday that it planned to lay off 40 percent of its already diminished workforce, or about 4,500 people.

The conference call cancellation adds to the uncertainty surrounding the company, which is based in Waterloo, Ontario.

On Monday, Fairfax, which owns about 10 percent of BlackBerry, said it had signed a letter of intent under which it might pay $9 a share to take BlackBerry private, assuming that a variety of conditions were met. If completed, the transaction would value BlackBerry at $4.7 billion.

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(Also see: BlackBerry agrees to $4.7 billion buyout by Fairfax-led consortium)

But Fairfax is not bound to complete the deal, nor is it held to the $9-a-share price while it conducts due diligence over the next six weeks. Fairfax, an insurance, reinsurance and investment company based in Toronto, will not pay a penalty if it walks away, but BlackBerry must pay $157 million to Fairfax if it finds a better offer before Fairfax commits.

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© 2013, The New York Times News Service

(Also see: End of an era as BlackBerry looks to go private)

 

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