BlackBerry forecasts upbeat quarterly revenue, says turnaround complete
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April 9 : BlackBerry on Thursday forecast first-quarter revenue above estimates, as the Canadian software company's turnaround gains traction on the back of strong demand across its cybersecurity and embedded software divisions.
U.S.-listed shares of the company jumped more than 10 per cent in premarket trading.
The company, once a dominant force in smartphones, has over recent years pivoted to software for connected devices and autonomous vehicles. It said it has now completed its turnaround plan and emerged with a stronger balance sheet.
Momentum continued in its QNX division, which provides secure, real-time operating systems used in mission-critical embedded systems, most notably in automobiles.
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Revenue at QNX rose 20 per cent to $78.7 million in the fourth quarter, while the royalty backlog increased to approximately $950 million.
Chief Executive John Giamatteo said the unit's deep integration into safety-critical systems shields it from broader technology disruption.
"Our business is much more immune to 'SaaSmageddon' because these are highly regulated, complex, mission‑critical solutions," Giamatteo told Reuters. "That strengthens our position versus any kind of generic AI product that might come to market."
BlackBerry's secure communications business, which generates about 75 per cent of its revenue from government customers, posted an 8 per cent increase in revenue to $72.5 million during the quarter.
CFO Tim Foote said the company plans to step up investment in its QNX business in the coming fiscal year, particularly in sales and marketing, to expand into adjacent markets such as physical AI, robotics and medical applications.
"I think you'll see us in a position to make some moves, from M&A tuck‑ins to help accelerate growth on the QNX side of the business, and then maybe, opportunistically, looking at buybacks," CEO Giamatteo said.
The company sees first-quarter revenue between $132 million and $140 million, compared with analysts' estimates of $129.9 million, according to data compiled by LSEG.
For the fourth quarter the company posted revenue of $156 million, above analysts' estimates of $144.4 million.
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