BlackBerry reports a surprising quarterly profit due of the strong demand for cybersecurity

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BlackBerry reports a surprising quarterly profit due of the strong demand for cybersecurity
BlackBerry reports a surprising quarterly profit due of the strong demand for cybersecurity

Canada’s BlackBerry (BB.TO) reported an unexpected quarterly profit on Wednesday, despite rising internet threats supported by strong demand for cybersecurity services.

In spite of growing online risks, Canada’s BlackBerry (BB.TO) posted an unexpected quarterly profit on Wednesday. This was supported by a strong demand for cybersecurity services.

Over the past year, IT spending has decreased, but spending on cybersecurity has stayed steady as governments and companies work to strengthen their systems against hackers.

Casino behemoths like MGM Resorts International (MGM.N) and Caesars Entertainment (CZR.O) have had significant data breaches in recent months, compelling companies to give cybersecurity top priority.

BlackBerry withdrew its intentions to go public for its Internet of Things (IoT) company earlier this month, but it still intends to separate its cybersecurity and IoT operations into separate, stand-alone firms.

“Work has commenced to fully separate and significantly rightsize our businesses, and we expect to further reduce operating cash flow usage in Q4,” stated John Giamatteo, the CEO.

BlackBerry also intends to streamline the organization’s corporate structure to enable autonomous, profitable, and cash-positive operations for every business unit.

BlackBerry projects revenue for the fourth quarter to be between $150 million and $159 million.

In contrast to a loss of five cents per share a year earlier, the Waterloo, Canada-based company recorded an adjusted net profit of one cent per share for the quarter that ended on November 30.

The third quarter’s revenue increased from $169 million to $175 million. Based on LSEG data, analysts projected revenue of $173.5 million on average.

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