BlackBerry is appealing to its customers to stay with the troubled smartphone maker as it restructures.
In an open letter released Monday afternoon on Twitter, BlackBerry tells its "customers, partners and fans" that they can continue to count on the Waterloo, Ont.-based company.
The letter alludes to BlackBerry's US$965-million loss for the second quarter of fiscal 2014 and possible ownership change, noting they could be a concern for customers.
But it says BlackBerry has substantial cash on hand, a balance sheet that is debt free, and is restructuring with a goal to cut expenses by 50 per cent.
It also says BlackBerry doesn't underestimate the situation it faces, and is making "difficult changes" -- such as a 40 per cent reduction of its global workforce -- to strengthen the company.
In an interview with CTV News, BlackBerry’s Managing Director of Canada, Andrew MacLeod spoke candidly about the company’s transition. “We’re so much in the public eye, there’s so much scrutiny associated with everything we do, which can make it a little bit tougher. It makes a difficult situation more difficult.”
MacLoed added that the open letter is specifically targeted at loyal BlackBerry users, companies that use BlackBerry enterprise software, developers and Chief Information Officers. “There’s an awful lot of speculation out there and we wanted to have a direct dialogue with our customers and loyal supporters to get some facts on the table”, he said.
Those facts included BlackBerry's security measures and the open letter notes its system also works with Apple iOS and Android devices.
"We are bringing the most engaging mobile messaging platform to all, with our BBM launch for Android and iPhone," the letter stated. "There are already around six million customers pre-registered to be notified of our roll out."
And the letter also stressed the company's BlackBerry 10 devices, saying BlackBerry continues "to offer the best mobile typing experience -- no ifs, ands or buts about it."
Many see the piece as a marketing tool instead of an open letter. Among them is Shirley Lichti, a Marketing Instructor at Wilfrid Laurier University. Lichti says the letter does address the facts but adds one is missing, the struggling sales of new BlackBerry devices. “BlackBerry needs to make sure that the Z30 has some good reception because they need to increase revenues.”
Some carriers decided not to sell BlackBerry's new Z30 smartphone.
Rogers Communications reversed its decision not to sell the Z30 last week following a backlash from customers on message boards and Twitter.
Lichti says the letter could resonate further with customers through more emotion. “This is generic. This says ‘sincerely the BlackBerry team’ and it’s kind of everybody. It would be nice to see more of an executive face behind that.”
Fairfax Financial, BlackBerry's largest shareholder, has made a conditional takeover bid worth US$9 per share and values the company at US$4.7 billion.
The Fairfax consortium is expected to complete its due diligence by Nov. 4. Until then, BlackBerry is allowed to actively solicit and evaluate rival offers.
BlackBerry co-founders Mike Lazaridis and Douglas Fregin have said they are looking at making a potential takeover bid.
According to documents filed with the U.S. Securities and Exchange Commission last week, the two are "interested in pursuing a joint bid" with "the goal of stabilizing and ultimately reinventing the company."
Together, Lazaridis and Fregin own roughly an eight per cent stake in BlackBerry, while Fairfax holds about 10 per cent.
MacLeod will not speculate on which bid is best for BlackBerry. “There’s some information out there in the public domain and as new developments become available I’m sure BlackBerry will be communicating those in a very forthright fashion. Beyond that, I don’t have much to add.”
Meanwhile, a class-action lawsuit was filed last Thursday at the Ontario Superior Court on behalf of all Canadian BlackBerry shareholders.
In a statement, the Merchant Law Group LLP said the suit was on behalf of shareholders who purchased the stock between Sept. 27, 2012 and Sept. 20, 2013.
The lawsuit alleges the company and its senior management "knowingly or negligently misrepresented" that the BlackBerry 10 smartphones had been well received by customers and in a "strong financial position," according to a news release.
The representative plaintiff is alleged to have lost $55,000 after buying BlackBerry shares in the last year.
None of the allegations have been proven in court.
With files from the Canadian Press.
