BlackBerry beats quarterly revenue expectations on cybersecurity boost, Telecom News, ET Telecom
In Canada BlackBerry Ltd beat Wall Street’s revenue forecasts for the second quarter on Wednesday amid strong demand for its cybersecurity and Internet of Things software products.
Shares of the company, quoted in the US, which rose 9.1% to $ 10.43 in long-term trading, had already risen 8% before the results.
Companies like BlackBerry are taking advantage of the growing demand for cybersecurity and IoT products as more companies and government organizations shift their operations to the cloud to support hybrid operations.
As a result, the company was able to offset the weakness of the slow demand for its QNX software from automakers such as Volkswagen, BMW and Ford Motor, as the automotive industry struggled to maintain production amid a protracted chip shortage.
BlackBerry has been dubbed a “meme stock” after the frenzy of social media retail, which began earlier this year, led to a sharp rise in shares. Shares of BlackBerry have risen 40% so far this year.
However, the company warned that the decline in car production due to the closure of COVID-19 and a shortage of chips will continue to adversely affect the company in the next two quarters of this financial year.
BlackBerry also hired John Jamateo, an earlier cybersecurity firm McAfeeas president of his cybersecurity business.
Revenue fell to $ 175 million for the quarter ended Aug. 31, from $ 259 million a year earlier, but exceeded analysts’ expectations of $ 163.5 million, according to Refinitiv’s IBES.
The net loss widened to $ 144 million, or 25 cents a share, from $ 23 million, or 4 cents a share, a year earlier. The company reported that the non-cash accounting adjustment to the fair value of convertible bonds due to market and trading conditions was approximately $ 0.12. loss of share.
Excluding items, the company reported a loss of 6 cents per share, which suppressed the expectations of past analysts for a loss of 7 cents.