Despite growing online risks, Canada’s BlackBerry (BB.TO) posted an unexpected quarterly profit on Wednesday. A strong demand for cybersecurity services supported this.
Over the last year, IT investment has decreased, but spending on cybersecurity has stayed steady as governments and companies work to strengthen their systems against hackers.
Casino behemoths like MGM Resorts International (MGM.N.) and Caesars Entertainment (CZR.O.) have had significant data breaches recently, compelling companies to prioritize cybersecurity.
BlackBerry withdrew its intentions to go public for its Internet of Things (IoT) company earlier this month. However, it still intends to separate its cybersecurity and IoT operations into separate, stand-alone firms.
“Work has commenced to fully and significantly rightsize our businesses, and we expect to reduce operating cash flow usage in Q4 further,” stated John Giamatteo, our CEO.
BlackBerry also intends to streamline the organization’s corporate structure to enable autonomous, profitable, and cash-positive operations for every business unit.
BlackBerry projects revenue for the fourth quarter to be between $150 million and $159 million. In contrast to a loss of five cents per share a year earlier, the Waterloo, Canada-based firm recorded an adjusted net profit of one cent per share for the quarter ending November 30.
The third quarter’s revenue increased from $169 million to $175 million. Based on LSEG data, analysts projected average sales of $173.5 million.
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