BlackBerry IoT unit sees rising demand in cars amid declining cybersecurity revenue

Canada’s BlackBerry on Tuesday reported a decline in its second-quarter cybersecurity revenue as customers reined in spending due to an uncertain macroeconomic environment, pushing its share of expanded commerce down about 3 percent.

The company has also faced stiff competition from Microsoft, Citrix Systems and International Business Machines in the security software segment, with unit sales falling 7.5 percent to $111 million (approximately Rs. 900 crore) versus Rs. 900 crore. from a year ago.

The company said in an earnings call that its third-quarter cybersecurity segment revenue is expected to be flat year on year.

However, the revenue of the company’s Internet of Things (IoT) unit, which includes the QNX software for automotive customers, increased about 28 percent to $51 million (about Rs. 420 crore) as it took on more customers.

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

BlackBerry said in June that a deal to sell its patents mainly related to mobile devices, messaging and wireless networks for $600 million (about Rs. 4,900 crore) to a special purpose vehicle has been postponed.

Total revenue declined 4 percent to $168 million (approximately Rs. 1,375 crore) for the quarter ended Aug. 31, compared to a consensus estimate of $166.7 million (approximately Rs. 1,365 crore), according to IBES data from Refinitiv. .

Excluding items, the company posted a loss of 5 cents per share, lower than analysts’ expectations of a loss of 7 cents.

© Thomson Reuters 2022


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