BlackBerry, the iconic Canadian technology company, has forecasted a significant 21.4% decline in its second-quarter revenue. This alarming prediction is primarily attributed to weaknesses within the company’s cybersecurity segment, causing concern among investors.
In response to this announcement, BlackBerry’s US-listed shares experienced a substantial drop of nearly 10% in extended trading on Wednesday.
According to BlackBerry’s preliminary results for the quarter, the company anticipates revenue to reach approximately $132 million, a notable decrease from the $168 million reported in the same period last year.
Analysts polled by LSEG had a more optimistic estimate of $156.9 million in sales, highlighting the discrepancy between expectations and reality.
John Chen, BlackBerry’s Executive Chair and CEO, acknowledged the impact of product mix and delays in closing certain large deals on the quarter’s revenue.
Meanwhile, news of a potential acquisition by private equity firm Veritas Capital added intrigue to the company’s ongoing strategic review.
The company’s cybersecurity unit, an essential part of its business, is expected to contribute only $80 million in revenue, down from $111 million in the previous year. These challenges underscore the need for BlackBerry to adapt and evolve in an ever-changing technology landscape.
BlackBerry revenue exceeds forecasts due to demand for cybersecurity
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