BlackBerry Third Quarter Report: Revenue and Earnings Exceed Expectations
BlackBerry just came out on top! The company reported some pretty impressive earnings for its fiscal third quarter, leaving analysts pleasantly surprised. Adjusted earnings per share stood at two cents, up from a loss of one cent per share that was expected. Revenue also exceeded expectations, landing at $162 million instead of the projected $145 million.
One factor contributing to this success is BlackBerry’s cybersecurity arm called Cylance, which brought in $19 million in revenue. The big news, though, is that BlackBerry has agreed to sell Cylance to Artic Wolf Networks Inc. for $160 million and 5.5 million Arctic Wolf shares, with the deal set to close soon. This move didn’t stop BlackBerry from doing well overall, with Internet of Things revenue up by 13%, cybersecurity revenue up by 7%, and licensing revenue surpassing guidance at $7 million. The company is also sitting on $266 million in cash, cash equivalents, and investments.
Key highlights from the quarter include the fact that BlackBerry’s QNX embedded technology now powers over 255 million vehicles! Hyundai Mobis even chose QNX for their next-gen digital cockpit platform, and together with Intel Corp., QNX introduced a software-defined safety platform for industrial automation.
BlackBerry AtHoc, another product from the company, which helps organizations communicate and coordinate during emergencies, is on its way to achieving high authorization from FedRAMP. If successful, AtHoc will be the first emergency management solution to meet this stringent U.S. government security standard.
CEO John J. Giamatteo expressed his satisfaction in the company’s performance, mentioning a stronger than expected profitability and a quick return to positive cash flow. He is looking forward to the sale of Cylance as a step towards even greater success for BlackBerry.
Looking ahead, BlackBerry is aiming to break even in the fiscal fourth quarter with revenues ranging from $126 million to $135 million. For the full year, the company predicts a loss of one cent per share with revenue between $517 million and $526 million. Cheers to BlackBerry for finishing the year on a high note!
