Canada’s BlackBerry reported a drop in second-quarter cybersecurity revenue on Tuesday, as an uncertain macroeconomic environment led consumers to rein in spending, sending its shares down about 3 percent in extended trading.
The company also faces tough competition from Microsoft, Citrix Systems and International Business Machines in the security software segment, with revenue at the unit falling 7.5 percent to $111 million (roughly Rs. 900 crore) from a year ago.
The company said in an earnings call that third-quarter cybersecurity segment revenue would be flat year-over-year.
However, revenue from the company’s Internet of Things (IoT) unit, which includes QNX software for automotive customers, rose about 28 percent to $51 million (roughly Rs. 420 crore) as more customers signed up.
BlackBerry’s QNX software is now embedded in 215 million vehicles worldwide, fueling demand for electric vehicles and connected-car technology. The company has recently added global motor manufacturers like Ford Motor, General Motors, Hyundai Motor to its already strong client list of BMW, Honda Motor, Mercedes-Benz and Toyota Motor.
BlackBerry said in June that a deal to sell its patents related to mobile devices, messaging and wireless networking to a special purpose vehicle for $600 million (roughly Rs 4,900 crore) has been delayed.
Total revenue fell 4 percent to $168 million (roughly Rs. 1,375 crore) in the quarter ended August 31, compared to the consensus estimate of $166.7 million (roughly Rs. 1,365 crore), according to IBES data from Refinitiv.
Excluding items, the company posted a loss of 5 cents per share, below analysts’ expectations of a loss of 7 cents.
© Thomson Reuters 2022
