October 5, 2022
BlackBerry says it saw higher software, licensing demand last quarter

Canada’s BlackBerry reported an astonishing 6 percent increase in quarterly revenue on Thursday as sales of its security software product grew and its patent licensing business strengthened.

US-listed shares of BlackBerry, which sell security software to companies and governments as well as infotainment software to car makers, rose 6 percent in morning trading.

BlackBerry’s QNX car software sales, which were under pressure due to pandemic-related weakness in the US auto industry, also improved in the quarter. Demand for new vehicles is improving after hitting a low in April, as lockdown restrictions are eased and buyers turn back.

“Some signs of improving auto production point to sequential revenue growth and a return to 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 work trends.

In a post-earnings call with analysts, the company said its patent licensing business also performed strongly, contributing $108 million (about Rs 795 crore) to total revenue.

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

The company reiterated its full-year revenue forecast of around $950 million (about Rs 6,997 crore). Analysts expect revenue to be $956 million (approximately Rs 7,041 crore).

Total revenue for the second quarter ended August 31 was $259 million (approximately Rs 1,907 crore), while analysts expect $247.03 million (approximately Rs 1,746 crore) to decline from $244 million (approximately Rs 1,797 crore) a year ago Was. , according to IBES data from Refinitiv.

Excluding commodities, the company reported a profit of 11 cents (approximately Rs 8) per share, compared to analysts’ estimate of 2 cents (approximately Rs 2).

Net loss narrowed to $23 million (about Rs 169 crore), or 4 cents (about Rs 3) per share, from $44 million (about Rs 324 crore), or 10 cents (about Rs 7) per share. year ago.

© Thomson Reuters 2020

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