BlackBerry Ltd. beat Wall Street’s estimates for third-quarter revenue on Tuesday, helped by continued demand for its cybersecurity and Internet of Things products.
Demand for cyber security software has been strong as more businesses and government organizations migrate to cloud-based solutions to support remote working during the COVID-19 pandemic.
According to Refinitiv data, BlackBerry posted cybersecurity revenue of $128 million in the third quarter and forecast to be between $125 million and $135 million in the fourth quarter, well below estimates of $143 million by one analyst.
US shares of the company fell 1.2% to $9.14 in extended trading.
Blackberry expects an easing of automotive supply chain issues in the fourth quarter and a boost to demand for QNX car software used by automakers including Volkswagen, BMW and Ford Motor, Chief Executive Officer John Chen said on a conference call. Giving will help.
BlackBerry reported a net profit of $74 million in the third quarter, compared to a loss of $130 million a year earlier.
Excluding commodities, the company also broke down on a per-share basis, beating analysts’ average estimate of a loss of 7 cents per share.
Revenue fell to $184 million for the quarter ended November 30, according to Refinitiv’s IBES data, from $218 million a year earlier, but exceeding analysts’ average expectation of $177.25 million.
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