BlackBerry's revenue to decline 21.4% in Q2, shares fall
BlackBerry expects second-quarter revenue to decline 21.4%
BlackBerry (BB.TO) expects its second-quarter revenue to decline by 21.4% from the same period last year, to about $132 million. The Canadian technology company blamed the decline on weakness in its cybersecurity segment.
In a preliminary results announcement, BlackBerry said it expects revenue in its cybersecurity unit to be about $80 million, lower than $111 million last year. The company said the decline was due to delays in closing certain large deals.
BlackBerry's shares fell nearly 10% in extended trading on Wednesday following the announcement.
The company's CEO, John Chen, said that the delays in closing deals were "expected to impact revenue recognized in the quarter." He added that BlackBerry is "still in discussions with potential buyers" and that the company is "confident in its long-term prospects."
BlackBerry has been struggling in recent years as it has lost market share in the smartphone market. The company has been shifting its focus to the cybersecurity market, but it has faced challenges in that market as well.
In August, media reports said that private equity firm Veritas Capital had made an offer to buy BlackBerry. The company has not confirmed the offer, but it has said that it is considering strategic alternatives.
The decline in BlackBerry's revenue is a setback for the company, but it is not a surprise. The company has been struggling for several years and the cybersecurity market is a competitive one.
BlackBerry will release its full second-quarter results on September 14.