Canada’s BlackBerry reports fall in cyber-security revenue

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Canada’s BlackBerry reports fall in cyber-security revenue
Canada’s BlackBerry reports fall in cyber-security revenue

Cyber-security segment revenue in the third quarter is expected to be flat year-on-year

A fall in cyber-security revenue for the second quarter has been reported by Canada’s BlackBerry Ltd on Tuesday, as customers reined in spending due to an uncertain macroeconomic environment, sending its shares down about three per cent in extended trading.

With revenue in the unit falling 7.5 per cent to $111 million from a year ago, the company has also been facing tough competition from Microsoft Corp, Citrix Systems and International Business Machines in the security software segment.

Cyber-security segment revenue in the third quarter is expected to be flat year-on-year, the company said in an earnings call.

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

Helped by surging demand for electric vehicles and connected-car technologies, BlackBerry’s QNX software is now embedded in over 215 million vehicles worldwide. The company recently added global carmakers such as Ford Motor, General Motors, Hyundai Motor, to its already strong client list of BMW, Honda Motor, Mercedes-Benz and Toyota Motor.

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

Compared with a consensus estimate of $166.7 million, total revenue fell four per cent to $168 million for the quarter ended 31 August.

Excluding items, the company posted a loss of 5 cents per share, narrower than analysts’ expectations of loss of seven cents.

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