BlackBerry revenue misses on weak demand for cybersecurity, motor vehicle softwares

(Reuters) -Canada’s BlackBerry Ltd, missed Wall Avenue estimates for 3rd-quarter earnings on Thursday, hit by poor desire for its cybersecurity solutions and QNX automobile application.

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The Blackberry emblem is shown on a business tower in Irvine, California

Surging COVID-19 circumstances in the Unites States have slowed the rate of vehicle sales in BlackBerry’s greatest marketplace, squeezing desire for the firm’s QNX software program, which is applied by automakers which includes Volkswagen, BMW and Ford Motor .

In the former quarter, when U.S. vehicle gross sales was recovering from pandemic lows hit in April, BlackBerry stated demand from customers for QNX was expected to normalize by early subsequent 12 months.

BlackBerry, which also sells stability software package to companies and governments, widened its customer base through the quarter but earnings fell 18% to $218 million, as opposed with analysts’ estimate of $219.7 million, according to IBES knowledge from Refinitiv.

Net reduction widened to $130 million, or 23 cents for each share, in the third quarter finished Nov. 30 from $32 million, or 7 cents for each share, a yr before, owing to fair-price adjustments to long-expression debt.

(Reporting by Eva Mathews in Bengaluru Editing by Devika Syamnath)