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BlackBerry revenue beats estimates as cybersecurity demand stays strong

By Reuters

<div> <p> -BlackBerry Ltd beat Wall Street estimates for third-quarter revenue on Tuesday, helped by sustained demand for its cybersecurity and Internet of Things products.</p> <p>Demand for cybersecurity software has been robust as more businesses and government organizations migrate to cloud-based solutions to support remote work during the <span class="caps">COVID</span>-19 pandemic.</p> <p>BlackBerry posted third-quarter cybersecurity revenue of $128 million and forecast that to be between $125 million and $135 million in the fourth quarter, below an estimate of $143 million by one analyst, according to Refinitiv data.</p> <p>U.S. shares of the company fell 1.2% to $9.14 in extended trading. </p> <p>Chief Executive Officer John Chen said on a conference call that BlackBerry expects automotive supply chain issues to ease in the fourth quarter and help boost demand for its <span class="caps">QNX</span> car software, used by automakers including Volkswagen, <span class="caps">BMW</span> and Ford Motor.</p> <p>BlackBerry reported a net profit of $74 million in the third quarter, compared with a loss of $130 million a year earlier.</p> <p>Excluding items, the company broke even on a per-share basis, beating analysts’ average estimate of a loss of 7 cents per share.</p> <p>Revenue fell to $184 million for the quarter ended Nov. 30, from $218 million a year earlier, but beat analysts’ average expectation of $177.25 million, according to <span class="caps">IBES</span> data from Refinitiv.</p> </div>