This transcript is automatically generated
So -- -- third quarter earnings report.
And more of the outlook was disappointing to investors we've got an activist shareholder who is demanding -- immediate changes in leadership.
Joining us out of Fox Business exclusive is -- -- -- he is Jack or financial chairman.
And CEO so -- They have this kind of strange split leadership role topping -- when where they have these co CEOs.
You are not a big fan to say the very least of this kind of leadership role how would you think it should be change.
Initially we thought there should be -- point -- one of the two co CEOs as sole CEO.
But now the company really has been so badly missing mismanaged we really think the -- directors should take.
Immediate and direct action to appoint a new leader why and it changes strategic -- from outside the company.
Absolutely no different and Sanjay joining Motorola when it's split into two companies done a great job -- to.
We need that kind of activity of room right now.
OK you've been saying that since we all last thought here on Fox Business over the summer of -- but my question to assist you kind of response are you getting from the company if at all.
This management team has not been that.
Quick to address real problems with angry shareholders or even the media.
That's the unfortunate part in terms of shareholder engagement it is imperative that independent directors listen to -- -- And see what they have to say right now it's not a question -- even creating value it's a question of restoring value there's been such a precipitous drop from thirty dollars in September to where we are today fifteen dollars.
We think the only way to restore values to break up the company.
Sell the consumer hardware business or the handset business and concentrate on the service business or to sell ran as a whole if that's at all possible well does the board have the gumption to do what is the board -- Somehow -- hold it.
To the CEOs.
Well I I I think historically the board has been beholden to the co CEOs I mean tragically and -- 2007.
The company committed to separate the roles of chairman and CEO that has not been implemented.
And we've had directors that have come on board as we outlined in our press release this morning Barbara -- that stand.
Roger Martin join in 2007 and they came from fabulous corporate governance backgrounds and yet they joined -- company.
That did not have the sole CEO or more importantly did not have an independent chair and -- -- really asking them to step up and lead that change and if you don't have change of the top.
I really don't think this company is gonna go anywhere.
Well this was a seventy dollar stock now it's a fifteen dollar stock and and today their outlook for the current quarter.
How many units that they will ship when it comes to blackberries has dropped from fourteen million this quarter to what could be about eleven or twelve million.
That's what our analysts were saying here on the shelf but that's just terrific at what point does Jim Slattery eighties you know look at this situation and say okay.
Were gonna do something about it we're going to at least listen and take some steps.
Well I think that time is now relieved to have to save themselves from themselves and the independent directors have to step forward.
Seize the reins -- and it was way too much management dominance and until he gets an independent thinking from the independent directors.
The company as it is not going anywhere and we also think a strategic shift is.
Is is really.
Important here we think the service business the one positive element -- music came out in this quarterly release was it's the.
Subscribers increasing from seventy million to 75 million that brings in.
Sixty dollars a year in 04 point 24 point five billion and -- -- but the margins above 50%.
You know brings it to about 2.2 billion.
Five times multiple it's probably worth 8910 billion dollars that's the business they.
And our humble view have to focus on and be device agnostic and apply that secure messaging platform.
To android phones as well as -- phones and other Smartphones.
Act quickly on the numbers -- it ended the day a little over fifteen after hours is trading about fifteen and a couple of pennies.
Do you think it'll go below fourteen of our.
It's entirely possible ending of Q4 outlook was not very good because the EPS.
Range -- eighty cents and 95 cents and as Liz pointed out the shipments are eleven to twelve million down from fourteen point one.
In Q3 so it could be negative and what's more important is that.
People don't understand when the BB ten phones are coming out it could be.
After the first six months of next year and then you've got that gap period and it could be a decline -- shipments reality for the following quarter.
Outspoken shareholder Vick -- -- -- sorry I don't know if they're listening but we we are thank you very much Eric.