How Hi-P may suffer from Blackberry's 'horrendous' preliminary earnings result

Analyst predicts negative impact on trading.

According to OSK, BlackBerry announced horrendous preliminary 2Q results. OSK noted that Hi-P's trading trading might be affected, being Blackberry's handset component manufacturer in Singapore.

Here's more from OSK:

Blackberry announced a bleak 2Q preliminary results in the evening  of last Friday, causing its share to tumbled. The company expected to report revenue of USD1.6bn on the back of 3.7m smartphone sales, steeply below consensus estimates of revenue of USD3.1bn.

To add to the woes, most of the smartphone sold during the quarter were BB7, and the company took the chance to write down USD930m to USD960 worth of BB10 inventories.

Furthermore, It said it would eliminate 4500 jobs (40% of its current workforce) in bids to cut 50% of operating expenses by 1QFY15. Following this bad news, we expect the trading of Singapore handset component manufacturer – Hi-P International to be negatively impacted. 

We put Hi-P’s rating under reviewed.