Blackberry maker Research in Motion (RIM) has said it will delay the launch of its new phone operating system Blackberry 10 and is to cut 5,000 jobs.
The confirmation of job losses, which RIM had warned of last month, came as the firm reported a $518m (£334m) net loss in the three months to 2 June.
That compared with a $695m profit in the same period a year earlier.
Analysts said the results were worse than expected and the Blackberry 10 delay spelt more bad news for RIM.
Revenue in the first quarter dropped 43% to $2.8bn as sales of its Blackberry smart phones fell sharply for a second straight quarter.
'Not satisfied'
RIM has struggled to keep up with rivals in the smart phone market, such as Apple's iPhone and handsets running on Google's Android operating system. It has also struggled to gain a foothold in the tablet market.
The Canadian firm had been pinning its hopes for a comeback on Blackberry 10.
The first phone with Blackberry 10 was expected later this year, but will now ship in the first quarter of 2013.
"Our first quarter results reflect the market challenges I have outlined since my appointment as CEO at the end of January," said RIM boss Thorsten Heins.
"I am not satisfied with these results and continue to work aggressively with all areas of the organisation and the board to implement meaningful changes to address the challenges, including a thoughtful realignment of resources and honing focus within the company on areas that have the greatest opportunities.
"Our top priority going forward is the successful launch of our first Blackberry 10 device, which we now anticipate will occur in the first quarter of calendar 2013."
