BlackBerry Ltd reported a surprise 6% increase in quarterly revenue on Thursday, as sales of its security software increased and company patent licenses strengthened
Listed shares of BlackBerry, which sells security software to businesses and governments, as well as infotainment software to automakers, are up more than 8% in early morning trading
Sales of BlackBerry’s QNX car software, which had been under pressure due to pandemic-related weakness in the US auto industry, also improved in the quarter Demand for new vehicles rebounded after hitting a low in April, as foreclosure restrictions ease and buyers return
« Some signs of recovery in auto production point to sequential revenue growth and a return to normal run rate for QNX early next year, » CEO John Chen said in a statement
The quarter benefited from higher sales of the company’s core security software, Spark, as businesses continue to strengthen IT security to support remote work trends
In a call with analysts after the results, the company said its patent licensing business also performed well, contributing US $ 108 million to total revenue
Morningstar analyst Mark Cash says BlackBerry Spark provides the business with future demand as businesses and government entities strive to protect and manage devices
The company reiterated its full-year revenue forecast of around US $ 950 million Analysts forecast revenue of US $ 956 million Total revenue for the second quarter ended in Aug 31 was US $ 259 million, when analysts expected it to fall to US $ 237 million from $ 244 million a year earlier, according to IBES data from Refinitiv
Excluding items, the company posted a profit of 11 cents per share, compared to analysts’ estimates of 2 cents per share The net loss narrowed to $ 23 million, or 4 cents per share, from 44 million USD, or 10 cents per share, a year earlier
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BlackBerry Stock
World News – CA – BlackBerry Stock Rises Due to Surprising Revenue Increase Following Higher Software Demand
