BlackBerry really underperformed compared to expectations this past Friday and there is no way to really avoid that fact. On the other hand BlackBerry was doing a wonderful job in the last 6-12 months in terms of taking control of their messaging and perception in the media. For some reason that finesse was totally lost this past Friday. BlackBerry executives knew that they were delivering disappointing news including a net income loss (even though revenue was up), lower than expected BlackBerry 10 shipments, drops in gross margins and service revenue, and other tidbits. The only real bright point they focused on was their increase in cash and positive cash flow for now. As of now BlackBerrys stock is trading below $10 after trading around $14-15 for a few months now.
The thing is BlackBerry does have a story and vision to tell but for some reason BlackBerry’s executives were totally unprepared to relay that during the conference call on Friday. Instead of projecting confidence we had BlackBerry CEO and CFO sounding like they didn’t have answers even to the most basic of questions. They could have assumed practically all of the questions analysts threw there way and prepared confident responses. Instead we received what came across as nonsensical half answers and dismal guidance for next quarter. What investors, customers, developers, and enterprise clients wanted to hear was BlackBerry’s plans for exponentially growing their BlackBerry 10 sales and marketshare.
I was really hoping that BlackBerry PR and executives would kick in and retake control and instill confidence in their vision for BlackBerry now that Canada Day is over but sadly that has not happened. Hopefully they have something planned because right now they are just letting the media spiral their messaging back to the “BlackBerry is dead” days we had 6 months back.
What do you think?