Blackberry Lower on Struggles in Cybersecurity, Auto Software Businesses
By Dhirendra Tripathi
Investing.com – BlackBerry (NYSE:BB) stock traded 5.5% lower in premarket Friday as key businesses struggled in the fourth quarter and revenue fell by 12%.
Cybersecurity business, its biggest, was flat due to increased competition. Revenue in the segment, facing competition from much bigger rivals like Microsoft (NASDAQ:MSFT) and IBM (NYSE:IBM), was $122 million.
The sluggishness in the automobile industry, brought upon by shortage of parts and semiconductors, continues to weigh on the company. Demand for its QNX software has been under stress as automakers have curtailed production due to shortage of semiconductors and other parts.
The company had, in September, warned that a drop in automobile production will continue to adversely affect its numbers over the next two quarters.
The IoT unit partly helped offset the setbacks. IoT revenue was $52 million on higher margins.
The company's net income for the quarter ended February 28 came in at $144 million compared to a net loss of $315 million a year ago.
Revenue in the quarter was $185 million, compared to $210 million last time.
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