SECURITY
SECURITY
SECURITY
BlackBerry shares drop on mixed earnings report
Shares in BlackBerry Ltd. dropped in after-hours trading today after the company reported mixed quarterly results.
The company, which currently sells security software as well as software systems to automakers and other “internet of things” providers, reported a profit before costs such as stock compensation of a penny a share on revenue of $185 million in the quarter ended Feb. 28. That compares with an adjusted profit of two cents per share on revenue of $224 million in the same quarter of last year.
Analysts had expected an adjusted loss of seven cents per share on revenue of $177.25 million.
By sector, BlackBerry reported IoT revenue of $52 million, with annual recurring revenue of $93 million, up 11% year-over-year. Cybersecurity revenue, its largest business, came in at $122 million, with an ARR of $347 million. Licensing and other revenue was $11 million. As of the end of the quarter, the total net cash position was $405 million, with net cash generated for operating activities coming in at $10 million.
Highlights in the quarter included BlackBerry QNX recording a record number of new design wins, with 17 in auto and 28 in the general embedded market. The company’s SecuSUITE encrypted communication solution received endorsement for North Atlantic Treaty Organization use by the National Security Advisory Board.
For the full fiscal year 2022, BlackBerry reported an adjusted loss per share of 10 cents on revenue of $718 million. Analysts had expected an adjusted loss of seven cents a share on revenue of $730.14 million.
“The IoT business recorded its first $50 million-plus revenue quarter since the start of the pandemic,” John Chen, executive chairman and chief executive officer of BlackBerry, said in a statement. “In addition to overcoming a number of industry-wide challenges, such as supply chain constraints and the war in Ukraine, the QNX business set another record for quarterly design-related revenue, demonstrating both strong fundamentals and momentum for the business.”
BlackBerry did not release outlook estimates for the next quarter, leaving the details to its investor call. Notes from the call were not available immediately.
Although BlackBerry beat analysts’ predictions for its quarterly results, the fiscal year miss was also noted by investors. BlackBerry shares fell more than 4% after the bell.
Photo: BlackBerry
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