Licensing, cybersecurity energy BlackBerry’s beat, shares rise 10%

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(Information) – Canada’s BlackBerry Ltd beat quarterly revenue and income estimates on Friday, boosted by demand in its patent licensing and cybersecurity companies, sending its shares up 10% to a nine-month excessive.

FILE PHOTO: A Blackberry signal is seen in entrance of their places of work on the day of their annual common assembly for shareholders in Waterloo, Canada on this June 23, 2015. Information/Mark Blinch

BlackBerry, as soon as in style for its telephones earlier than shedding out to Apple Inc’s iPhones and Android gadgets, now presents knowledge safety software program for firms and authorities companies, and software program for driverless automobiles.

As a part of the push into cybersecurity enterprise, the corporate in February acquired Cylance, a California-based cyber safety enterprise whose software program makes use of machine studying to keep away from safety breaches. BlackBerry reported income of $40 million from Cylance.

“The entire providing of Cylance services and products will little doubt assist drive stronger income development subsequent yr,” Chief Govt Officer John Chen mentioned on a post-earnings name.

The corporate’s adjusted income rose 23% to $280 million within the third quarter ended Nov. 30, beating analysts’ common estimate of $276 million, in response to IBES knowledge from Refinitiv.

Nevertheless, adjusted income within the firm’s Web-of-Issues enterprise, which homes the expertise options and enterprise software program and companies (ESS) models, fell three% to $145 million.

Chen had warned throughout the firm’s second-quarter earnings name that softness within the ESS enterprise will linger for the subsequent two quarters, primarily on account of modifications in its gross sales group.

The corporate reported a quarterly internet lack of $32 million, in contrast with a revenue of $59 million, a yr earlier.

On a per share foundation, its loss widened to 7 cents from 1 cent, a yr earlier.

Excluding one-time gadgets, BlackBerry earned three cents per share, beating the common analyst estimate of two cents.

Reporting by Amal S in Bengaluru; Modifying by Vinay Dwivedi