💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

BlackBerry inks security software deals; shares slip

Published 07/19/2016, 12:29 PM
Updated 07/19/2016, 12:40 PM
© Reuters. An illustrative photo shows Blackberry smartphone

By Malathi Nayak and Alastair Sharp

NEW YORK/TORONTO (Reuters) - BlackBerry Ltd said on Tuesday it had signed a five-year, multimillion-dollar deal to run emergency notifications for the U.S. Senate, among a handful of small deals the company unveiled as it shifts its focus to software from smartphones. The Canadian company also said that AtHoc, a crisis communications firm it bought last year, had expanded a deal with the U.S. Coast Guard to cover staff in Washington, D.C. BlackBerry did not provide financial details of the deals.

BlackBerry unveiled the new deals at its security summit in New York to illustrate its pivot from smartphone maker to corporate and government IT supplier, which some critics complain is taking too long to deliver meaningful results.

"We're going to have to see a lot of these types of deals from them going forward to really get the sense that they are moving in the right direction," said Phil Hochmuth, program director for enterprise mobility at International Data Corp.

BlackBerry shares were down 1.9 percent at $6.60 in midday trade on the Nasdaq, and 1.3 percent lower at C$8.60 in Toronto.

The Waterloo, Ontario-based company said the U.S. Department of Defense, one of its largest customers, had given additional technical approvals to both its mobile management system and phone software, giving it an advantage as a preferred vendor.

It also said it had teamed up with a company called AppDome to allow corporate coders to translate apps made for other systems for use with BlackBerry systems, and inked a deal for its QNX industrial operating system to be used in electric locomotives being developed in Turkey.

"It's a little bit of a smorgasbord," said Jack Gold, an analyst at J. Gold Associates. "For some customers, it's hard for them to describe the overall strategy and vision."

IDC's Hochmuth said the next big test for BlackBerry is if it can strike more deals in the private sector.

© Reuters. An illustrative photo shows Blackberry smartphone

The Canadian company is moving its focus from its once-dominant smartphones to software that companies and governments use to manage mobile devices. Its adjusted revenue from software overtook diminished handset sales last quarter.

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.