Research In Motion Ltd (BBRY), Apple Inc. (AAPL), Nokia Corporation (ADR) (NOK): It’s Time to Start Worrying About BlackBerry

If both the Z10 and Q10 fail, BlackBerry is up the creek without a paddle. Simply look at this chart to understand how desperately it needs these two handsets to succeed.

Both revenue and earnings are plunging, and EPS has been negative for most of last year. On the bright side, its cash position and free cash flow remains stable, and the company surprisingly has no long-term debt. However, both operating and profit margins are negative, and have been since the start of 2012.

If the Z10 and Q10 fail to win a following, I think Heins’ backup plan of licensing its software to other hardware vendors will simply fail. If that happens, then Research In Motion Ltd (NASDAQ:BBRY) is going to have to consider some drastic moves – such as introducing Android phones of its own – to survive. So for now, BlackBerry’s future rests entirely on these two phones – and if they fail, it’s time to finally sell this broken stock – which has plunged 86% over the past five years.

The article It’s Time to Start Worrying About BlackBerry originally appeared on Fool.com and is written by Leo Sun.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.