BlackBerry takes a knock as cybersecurity revenue drop clouds automotive demand
Reuters
Published Sep 27, 2022 05:10PM ET
Updated Sep 27, 2022 07:06PM ET
(Reuters) -Canada's BlackBerry (NYSE:BB) Ltd on Tuesday reported a fall in cybersecurity revenue for the second quarter, as customers reined in spending due to an uncertain macroeconomic environment, sending its shares down about 3% in extended trading.
The company has also been facing tough competition from Microsoft Corp (NASDAQ:MSFT), Citrix Systems (NASDAQ:CTXS) and International Business Machines (NYSE:IBM) in the security software segment, with revenue in the unit falling 7.5% to $111 million from a year ago.
The company said in an earnings call that cybersecurity segment revenue in the third quarter is expected to be flat year-on-year.
However, revenue at the company's Internet of things (IoT) unit, which includes the QNX software for automotive customers, rose about 28% to $51 million as it signed up more customers.
BlackBerry's QNX software is now embedded in over 215 million vehicles worldwide, helped by surging demand for electric vehicles and connected-car technologies.The company recently added global carmakers such as Ford Motor (NYSE:F), General Motors (NYSE:GM), Hyundai Motor, to its already strong client list of BMW, Honda Motor , Mercedes-Benz and Toyota Motor (NYSE:TM).
BlackBerry in June said that a deal to sell its patents primarily related to mobile devices, messaging and wireless networking for $600 million to a special purpose vehicle has been delayed.
Total revenue fell 4% to $168 million for the quarter ended Aug. 31, compared with a consensus estimate of $166.7 million, according to IBES data from Refinitiv.
Excluding items, the company posted a loss of 5 cents per share, narrower than analysts' expectations of loss of 7 cents.
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Written By: Reuters
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