BlackBerry: share down - Q3 better but forecasts disappoint

(CercleFinance.com) - On Thursday, BlackBerry published better-than-expected Q3 results to end-November, although its sales forecast for Q4 disappointed investors, sending its shares down 13.
5% yesterday.

The group - which provides smart security software and services to businesses and governments - expects Q4 sales of $150m to $159m.

In cybersecurity, its main business area, the Canadian company anticipates quarterly sales of $83m to $88m, well below the $121m targeted by analysts.

Even so, the company has just closed major contracts with the US Department of Homeland Security and the Malaysian government, an insider said.

In the three months to the end of November, the group posted sales of $175m, compared with $169m a year earlier, including $114m (+8% y-o-y) in cybersecurity.

Its net loss was reduced to $21m, half the $42m in the same period last year.

Under the aegis of John Giamatteo, its new CEO, last week BlackBerry announced its intention to separate its cybersecurity activities from its Internet of Things (IoT) business.

The Canadian group, which also intends to resize its cost structures, says that it no longer intends to float its IoT division on the stockmarket.


Copyright (c) 2023 CercleFinance.com. All rights reserved.