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BlackBerry reports surprise profit on demand for cybersecurity services
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BlackBerry reports surprise profit on demand for cybersecurity services
Apr 3, 2024 4:03 PM

April 3 (Reuters) - Canada's BlackBerry reported

a surprise profit for the fourth quarter on Wednesday, helped by

higher demand for its cybersecurity services amid growing online

crimes and high-profile hacks.

U.S.-listed shares of the company rose 6.4% after the

bell.

The company reported an adjusted net profit of 3 cents per

share for the quarter ended Feb. 29, compared with analysts'

average estimate of a loss of 3 cents, according to LSEG data.

The Waterloo-based company's quarterly revenue stood at $173

million, beating analysts' average estimate of $154.78 million.

Revenue in the cybersecurity unit, which provides

intelligent security software to enterprises and governments,

rose 5% year-on-year to $92 million, while revenue from its

internet of things (IoT) business jumped 25% to $66 million.

"We are making good progress with efforts to both separate

the divisions and drive towards profitability, and operating

cash usage more than halved sequentially this quarter," CEO John

Giamatteo said in a statement.

The company said in February it had reduced 200 jobs and

exited some offices, and was targeting a $100 million increase

in annual profit.

In December the company scrapped its initial public offering

(IPO) plans for its IoT business, but still expects to split the

IoT and cybersecurity businesses into fully standalone

divisions.

BlackBerry expects first-quarter revenue in the range of

$130 million to $138 million, below analysts' estimate of

$151.12 million.

BlackBerry expects full-year 2025 revenue in the range of

$586 million to $616 million and adjusted loss per share of 3

cents to 7 cents.

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