BlackBerry takes a hit as cybersecurity revenue drops in demand for cars

BlackBerry takes a hit as cybersecurity revenue drops in demand for cars

(Reuters) – Canada’s BlackBerry (NYSE:) Ltd on Tuesday reported a drop in cybersecurity revenue for the second quarter, as customers curbed spending due to the uncertain macroeconomic environment, sending its shares down about 3% in extended trading.

The company also faced stiff competition from Microsoft Corporation (NASDAQ :), Citrix Systems (NASDAQ:) and International Business Machines (NYSE:) in the security software segment, with revenue in the unit down 7.5% to $111 million from a year ago.

The company said in an earnings call that revenue from the cybersecurity segment in the third quarter is expected to be flat year over year.

However, revenue in the company’s Internet of Things (IoT) unit, which includes QNX software for automotive customers, rose about 28% to $51 million as more customers signed up.

BlackBerry’s QNX software is now included in more than 215 million vehicles worldwide, fueled by the growing demand for electric vehicles and connected car technologies, and the company has recently added global auto manufacturers such as Ford Motor (NYSE:), General Motors (NYSE:), Hyundai Motor, to its already strong customer list such as BMW, Honda Motor, Mercedes-Benz and Toyota Drive (NYSE:).

BlackBerry said in June that a deal to sell its patents primarily related to mobile devices, messaging and wireless networking for $600 million for a special purpose vehicle has been delayed.

Total revenue declined 4% to $168 million for the quarter ended August 31, compared to 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, less than analysts’ expectations for a loss of 7 cents.

READ ALSO :   LNG ships now cost a record high of around $400,000 a day as Europe struggles to solve its gas crisis

The Latest

To Top