BlackBerry forecast a 21.4 per cent decline in its second-quarter revenue due to weakness in the company’s cybersecurity segment, sending its US-listed shares nearly 10 per cent lower in extended trading on Wednesday.
In its preliminary results announcement for the quarter, the company said it expects revenue of about $132 million, compared with $168 million last year.
The company reported late Wednesday that preliminary second-quarter revenue would be $132 million, well below the $204.2 million forecast, and below the $168 million last year
The company reaffirmed its full-year revenue outlook for its cybersecurity and licensing divisions, but lowered its guidance for its IoT unit because of changes to the production schedules at some automakers and uncertainty in the economy.
The full-year revenue outlook for the IoT business unit is now expected to be in the range of $225 million to $240 million.
Chief Executive and Executive Chair John Chen said the company expects to close these deals this fiscal year and reiterated the company’s full-year outlook for the cybersecurity business unit.
“Like many software companies, our Cybersecurity business has experienced elongated sales cycles, particularly in BlackBerry’s core government vertical, where we have a strong market position. Given the product mix, delays in closing certain large deals are expected to impact revenue recognized in the quarter.
However, we expect to close these deals this fiscal year and are therefore reiterating the full-year outlook for the Cybersecurity business unit given previously,”
“Our IoT business unit continues to capitalize on its large market opportunity and multi-year secular tailwinds by securing new design wins at a strong rate. However, in the short term we are seeing some automakers shift the start of software development programs, as well as production schedules, and therefore we’ve revised our current year revenue outlook, but not our long- term targets.”
BlackBerry Preliminary Second Quarter Fiscal 2024 Financial Results:
Total company revenue expected to be approximately $132 million.
IoT revenue expected to be approximately $49 million.
Cybersecurity revenue expected to be approximately $80 million.
Licensing and Other revenue expected to be approximately $3 million