(Reuters) – BlackBerry expects a 21.4% decline in its second-quarter revenue due to weakness in its cybersecurity segment, causing its U.S.-listed shares to drop nearly 10% in extended trading on Wednesday.
In its preliminary results announcement, the Canadian technology company revealed that it anticipates revenue of approximately $132 million for the quarter, compared to $168 million in the previous year. Four analysts surveyed by LSEG project that BlackBerry will report sales of $156.9 million.
“Due to the product mix, there may be delays in closing certain large deals and consequently, this is expected to impact revenue recognized in the quarter,” stated John Chen, BlackBerry’s Executive Chair and CEO.
News emerged in August that private equity firm Veritas Capital extended an offer to acquire BlackBerry, amidst the company’s ongoing strategic review.
The company also foresees a decline in revenue in its cybersecurity unit, estimating it to reach around $80 million, lower than the previous year’s $111 million figure.
Jaiveer Singh Shekhawat, reporting from Bengaluru, contributed to this article. Editing by Devika Syamnath.
Credit: The Star : Tech Feed
