Final hours! Save up to 55% OFF InvestingProCLAIM SALE

BlackBerry posts surprise revenue rise on higher software, licensing demand

Published 09/24/2020, 07:27 AM
Updated 09/24/2020, 10:40 AM
© Reuters. Visitors attend the Blackberry booth at the Mobile World Congress in Barcelona
BB
-

(Reuters) - Canada's BlackBerry Ltd (TO:BB) (N:BB) posted a surprise 6% rise in quarterly revenue on Thursday, as sales of its security software product rose and its patent licensing business strengthened.

U.S.-listed shares of BlackBerry, which sells security software to companies and governments as well as infotainment software to carmakers, rose 6% in early morning trade.

BlackBerry's QNX car software sales, which had been under pressure due to a pandemic-related weakness in the U.S. auto industry, also improved in the quarter. Demand for new vehicles has been recovering after hitting a bottom in April, as lockdown restrictions ease and buyers return.

"Some signs of recovery in auto production point to sequential revenue growth and a return to a normal run rate for QNX by early next year," Chief Executive 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 their IT security to support remote working trends.

In a post-earnings call with analysts, the company said its patent licensing business also performed strongly, contributing $108 million to total revenue.

Morningstar analyst Mark Cash said BlackBerry Spark provides the company with future demand as enterprises and government entities work to protect and manage devices.

The company reiterated it full year revenue forecast of about $950 million. Analysts expect revenue to be $956 million.

Total revenue for the second quarter ended Aug. 31 was $259 million, while analysts were expecting it to drop to $237.03 million from $244 million a year earlier, according IBES data from Refinitiv.

Excluding items, the company reported a profit 11 cents per share, compared with analysts' estimates of 2 cents per share.

© Reuters. Visitors attend the Blackberry booth at the Mobile World Congress in Barcelona

Net loss narrowed to $23 million, or 4 cents per share, from $44 million, or 10 cents per share, a year earlier.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.