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BlackBerry Ltd. beat Wall Street revenue expectations for the third quarter on Tuesday, thanks to strong demand for its cybersecurity and Internet of Things products.
As more businesses and government organizations migrate to cloud-based solutions to support remote work during the COVID-19 pandemic, there has been a surge in demand for cybersecurity software.
According to Refinitiv data, BlackBerry (NYSE:BB) reported $128 million in third-quarter cybersecurity revenue and expects between $125 million and $135 million in the fourth quarter, falling short of one analyst’s estimate of $143 million.
In extended trading, the company’s shares fell 1.2 percent to $9.14 in the United States. On a conference call, BlackBerry CEO John Chen stated that the company expects automotive supply chain issues to improve in the fourth quarter, which will help boost demand for its QNX car software, which is used by automakers such as Volkswagen (DE: VOWG p), BMW, and Ford Motor Company (NYSE: F).
BlackBerry made a $74 million profit in the third quarter, compared to a $130 million loss the year before. On a per-share basis, the company broke even, beating analysts’ average estimate of a loss of 7 cents per share.
Revenue fell to $184 million for the quarter ended Nov. 30, down from $218 million a year ago, but it beat analysts’ expectations of $177.25 million, according to the company.
Story by : Norvisi Mawunyegah