SECURITY
SECURITY
SECURITY
Shares in BlackBerry up slightly on mixed bag of earnings results
Shares in BlackBerry Ltd. rose slightly in after-hours trading today after the company delivered a mixed bag of earnings results.
For the quarter ended May 31, BlackBerry reported revenue of $174 million, down 16% from the same quarter last year. The company, now mainly a cybersecurity firm with a growing “internet of things” business, reported a loss before costs such as stock compensation of $23 million, or five cents per share. Analysts had been predicting a six-cent-per-share loss on revenue of $172 million.
On the revenue side, BlackBerry said its IoT revenue in the quarter came in at $43 million,while its cybersecurity revenue was $107 million. Licensing and other revenue in the quarter rounded out the total revenue figure at $24 million as negotiations for the sale of a portion of the company’s patent portfolio continue.
Highlights in the quarter included Volvo AB selecting the BlackBerry QNX operating system and hypervisor as a foundation for its “Volvo Dynamic Software Platform” and Chinese electric carmaker WM Motor Technology Co. Ltd. selecting QNX to power its W6 all-electric SUV. BlackBerry QNX is now embedded in more than 195 million vehicles as of the end of the quarter, up from about 175 million vehicles last year.
“This quarter, we aligned the business around the two key market opportunities — IoT and cybersecurity,” Chief Executive Officer John Chen said in a statement. “In IoT, we are pleased with the strong progress of the auto business, despite global chip shortage headwinds.”
The global chip shortage is affecting all sorts of tech companies. In March, it was reported that Samsung Electronics Co. Ltd. might not be able to launch a new Galaxy Note this year because of the chip shortage. In April, it was claimed that Apple Inc. was experiencing delays in producing some MacBook and iPad models for the same reason.
Both Intel Corp. and Taiwan Semiconductor Manufacturing Co. warned April 15 that the chip shortage might last through 2023. Notably, Intel Chief Executive Officer Pat Gelsinger said at the time that automakers and medical equipment manufacturers had been the most visibly affected. That directly affects Blackberry, which is providing software and technology to vehicle manufacturers.
Shares in BlackBerry were up a hair under 1% in after-hours trading.
Photo: BlackBerry
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