BlackBerry Limited BB communicated that it has strengthened its partnership with MetaMinds (previously Nova Tech), a leading technology system integrator and managed IT solutions provider. In a concerted effort, they will provide cutting-edge digital infrastructure to students as part of the Government of Romania’s National Wireless Campus Project.
BlackBerry’s two-factor authentication software, BlackBerry 2FA, will be implemented by MetaMinds to offer Wi-Fi to 4,500 public schools across Romania. Notably, the company’s 2FA delivers high-security authentication that protects standards-based services in the cloud and on-premise. Reportedly, the user experience delivered by the solution will provide more than 1.5 million students and teachers with a better environment for learning opportunities.
At September end, the company announced that it has created Advanced Technology Development Labs (BlackBerry Labs). This is a new business unit operating at the forefront of R&D in the cybersecurity landscape. BlackBerry aims to ensure that its customers are protected across all endpoints and verticals in the IoT.
Headed by chief technology officer, BlackBerry Labs include a team of more than 120 software developers, architects, researchers, product leads and security experts. BlackBerry Labs’ initial projects will focus on machine learning approaches to security in partnership with its existing Cylance, Enterprise, and QNX business units.
In the last reported quarter, the cybersecurity software and services company’s aggregate GAAP revenues increased 16.2% year over year to $244 million. Software and services revenues were $239 million, up 24%. Region wise, North America generated revenues of $179 million compared with $133 million in the year-ago quarter. Revenues from Europe, Middle East and Africa were $47 million, down 11.3% year over year, while revenues from other regions totaled $18 million, down 25%.
For fiscal 2020, BlackBerry clipped its revenue outlook due to weak demand for its software from companies and government agencies amid increasing competitive pressure. It expects non-GAAP revenue growth between 23% and 25%, compared with its previous guidance of growth between 23% and 27%.
BlackBerry continues to invest in the right opportunities to drive long-term, sustainable growth and profitability. Further, the company is integrating its endpoint management and artificial intelligence technologies on one platform to address the high-growth endpoint security market. It topped earnings estimates twice in the trailing four quarters, delivering an average positive surprise of 31.3%.
Shares of BlackBerry have lost 20.2% compared with the industry’s decline of 11.1% year to date. However, positive reception of BlackBerry Intelligent Security and a number of impending product launches instill optimism.
BlackBerry currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry are Qualcomm Incorporated QCOM, Ubiquiti Inc. UI and PCTEL, Inc. PCTI. While Qualcomm and Ubiquiti sport a Zacks Rank #1 (Strong Buy), PCTEL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Qualcomm has long-term earnings growth expectation of 14%.
Ubiquiti has long-term earnings growth expectation of 9.4%.
PCTEL surpassed earnings estimates in each of the trailing four quarters, the average surprise being 150.6%.
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