BlackBerry Ltd. on Tuesday topped Wall Street forecasts for third-quarter revenue, driven largely by robust demand for its products related to cybersecurity and the internet of Things.
Demand for cybersecurity software has increased in recent months as more companies and government organizations switch to cloud-based solutions to support remote work in the midst of the COVID-19 pandemic.
BlackBerry posted third-quarter cybersecurity revenue of $128 million and forecast fourth-quarter revenue of between $125 million and $135 million, below estimates of $143 million, according to Refinitiv data.
BlackBerry US shares fell 1.2% to $9.14 in extended trading.
BlackBerry CEO John Chen said in a conference call that the company expects problems in the automotive supply chain to ease in the fourth quarter and boost demand for the QNX auto software used by carmakers such as Volkswagen, BMW and Ford Motors.
BlackBerry posted a net profit of $74 million in the third quarter, compared with a net loss of $130 million in the same period last year.
Revenue fell to $184 million for the quarter ended November 30, down from $218 million in 2020 but above analysts’ average forecast of $177.25 million, according to IBES data from Refinitiv.
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