CANADA’S BlackBerry reported a surprise profit for the fourth quarter on Wednesday (Apr 3), helped by higher demand for its cybersecurity services amid growing online crimes and high-profile hacks.
US-listed shares of the company rose 6.4 per cent after the bell.
The company reported an adjusted net profit of 3 US cents per share for the quarter that ended Feb 29, compared with analysts’ average estimate of a loss of 3 US cents, according to LSEG data.
The Waterloo-based company’s quarterly revenue stood at US$173 million, beating analysts’ average estimate of US$154.78 million.
Revenue in the cybersecurity unit, which provides intelligent security software to enterprises and governments, rose 5 per cent year on year to US$92 million, while revenue from its Internet of Things (IoT) business jumped 25 per cent to US$66 million.
“We are making good progress with efforts to both separate the divisions and drive towards profitability, and operating cash usage more than halved sequentially this quarter,” CEO John Giamatteo said.
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The company said in February it had reduced 200 jobs and exited some offices, and was targeting a US$100 million increase in annual profit.
In December the company scrapped its initial public offering plans for its IoT business but still expects to split the IoT and cybersecurity businesses into fully standalone divisions.
BlackBerry expects first-quarter revenue in the range of US$130 million to US$138 million, below analysts’ estimate of US$151.12 million.
BlackBerry expects full-year 2025 revenue in the range of US$586 million to US$616 million and adjusted loss per share of 3 to 7 US cents. REUTERS
