In an article posted yesterday, I warned investors that BlackBerry Ltd. (TSX:BB)(NASDAQ:BBRY) was about to post some disappointing quarterly numbers. That prediction turned out to be true.

Quarterly revenue totaled just US$490 million, down 46% year over year, well short of analyst estimates of US$611 million. The bottom line also fell short, as BlackBerry posted an adjusted loss of US$0.13 per share, compared with the US$0.09 per share loss expected by analysts.

On the conference call with analysts, CEO John Chen acknowledged these shortcomings, saying that he is “not satisfied” with the results. Mr. Chen is especially disappointed with the handset business, which recognized revenue on just over 800,000 smartphones. Analysts had been expecting a number closer to one million.

So, what takeaways can we get from BlackBerry’s latest update?

1. The phones are not catching on

Under Mr. Chen’s leadership, BlackBerry has released three new devices: the Classic, the Leap, and the Passport. All three have their own purpose and target market, but numerous reports indicated they were struggling to gain traction.

And that was confirmed on Friday with the lacklustre number of units sold in the quarter. It’s clear at this point that the BlackBerry brand is badly damaged, and there’s no real end in sight for the market share losses.

2. There could be a shift to Android

During the call, Mr. Chen confirmed that BlackBerry will soon be releasing an Android-powered handset called the BlackBerry Priv. It’s a remarkable change of heart for the company, which in previous years has touted the security benefits of its own operating system.

For now, there is still a role to play for BB10. The operating system is used by some of BlackBerry’s most important customers, including governments, and they cherish its top notch security. But Mr. Chen acknowledged that if the Android handset is successful, and if the security concerns can all be ironed out, then a broader shift to Android is possible.

3. The software business is still a tough slog

As we all know by now, BlackBerry has shifted its focus from handsets to Enterprise Mobility Management (EMM) under Mr. Chen’s leadership. But this business comes with many challenges. For starters, competition has intensified, with some players (including Microsoft) offering discounted EMM services as part of a broader software offering. BlackBerry is also hampered by its damaged brand.

And BlackBerry hasn’t done a good enough job of overcoming these challenges, posting just US$74 million of software and licensing revenue. Mr. Chen’s US$500 million of annual software revenue seems a long way off.

So, if you’re the type of investor who hates volatility and wants quick results, BlackBerry is certainly not the stock for you. Its latest results offer yet another reminder.

BlackBerry is still very risky. You should buy this stock instead.

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Fool contributor Benjamin Sinclair has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft.