Many industry analysts are now drawing parallels between BlackBerry and Nortel Networks Corp, the now-defunct Canadian telecom equipment giant.
Both companies, at their peaks, were the largest publicly listed names on the Toronto Stock Exchange. But as Nortel's revenue collapsed, it dumped employees in repeated restructurings and was eventually broken up and sold in parts.
BlackBerry has already hired advisors to look at finding a buyer for all or some of the company.
Given the dismal picture, Morningstar analyst Brian Colello said BlackBerry is likely to quickly attempt to go private or sell off some, or all, of its business units.
But he said he was no longer confident that a private equity buyer, who would shield management from the scrutiny of being a listed company, could turn the company around.
"We see no hope for BlackBerry at this point," Colello stressed in a note to clients following the warning on Friday. He said, in his view, BlackBerry was in "a death spiral."