Investing.com | Editor Pollock Mondal
Published Oct 03, 2023 11:32
BlackBerry (NYSE:BB)'s Q2 FY2024 earnings call revealed a 9% increase in its Internet of Things (IoT) business unit revenue to $49 million, with a gross margin of 84%. The company also secured 20 new design wins in the automotive sector, including a significant Advanced Driver Assistance Systems (ADAS) win with a top-five global automaker. However, the company adjusted its IoT revenue outlook for the next two quarters due to challenges faced by automakers.
Key takeaways from the call include:
In the call, BlackBerry's CEO John Chen expressed confidence in the opportunities for growth in both its IoT and cybersecurity businesses, and expects a stronger second half of the fiscal year. The company is set to launch its new generation QNX real-time operating system, QNX 8.0, in December. BlackBerry also plans to fully repay its current debentures and is developing plans for potential future scenarios regarding raising new debt.
BlackBerry's cybersecurity solutions, including its AI-driven prevention detection and response solution, CylanceENDPOINT, were recognized by Gartner (NYSE:IT) Peer Insights as a top choice. BlackBerry UEM was also recognized as the only customer choice for endpoint management.
Despite revenue volatility, BlackBerry is confident in its cyber and IoT businesses and expects a stronger second half. The company believes the delays experienced by some customers are temporary and anticipates a solid Q4 for its QNX division. BlackBerry remains committed to its IoT strategy and plans to continue engaging with Original Equipment Manufacturers (OEMs).
Regarding Project Imperium, the company and its board have narrowed down potential paths and are actively engaged in the process. Chen also mentioned an upcoming BlackBerry Summit in October focused on trust and including discussions on IoT. Chen reassured customers that the uncertainty surrounding the review has not had a significant impact on their business. He also mentioned that the strategic review is likely to conclude sooner rather than later.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.