Blackberry Signals Massive Loss - Enters Last Chance Saloon

Blackberry warned investors that it's likely to post a $1bn loss in its forthcoming quarter and announced redundancies for about 40% of its 12,000 strong workforce. That's as bad as news gets in the mobile industry and leaves the Canadian firm with two routes forward - bankruptcy or a buyout.

Now whilst I'm no fan of the company's products it would still sadden me were they to disappear. However I suspect that this announcement is actually a bit of positive news shrouded in gloom.

Its not unusual for a company that has problems to bundle up all its bad news into a single period, front-loading all the pain so that financial results in the future can be better with the ongoing issues alleviated. Those future reports can look much more positive to a potential buyer possibly hastening a sale.

A much better prospect than imminent bankruptcy.


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