(Reuters) – canadian BlackBerry Ltd. on Wednesday reported lower-than-expected sales for the main business, hurt by weak demand for its security software companies and the public sector, sending the shares down by as much as 10%.
FILE PHOTO: A Blackberry, a sign is seen in front of their offices on the day of the annual general meeting for shareholders in Waterloo, Canada on the 23rd of June to the end of 2015. REUTERS/Mark Blinch/File Photo
The Waterloo, Ontario-based BlackBerry, once known for its phones, the sale of which are used in mobile phones and car manufacturers, in the hope of finding a more stable source of income. The company, which provides technology to companies in the development of unmanned aerial vehicles.
However, the income of the Internet of Things, which are the homes of the enterprise software and technology solutions, has increased by only 5%, to $137 million, coming in below estimates of $151.4 million, according to IBES data, Refinitiv.
“IoT seems to have underperformed. Some technological solutions to current earnings, it is generally stable and growing, with a possible deficit would have been from enterprise software,” Raymond James analyst Steven Li said.
On the whole, the revenue of which increased by 23% to $267 million in the first quarter of this year, in favor of the company’s recent $1.4 billion commitment in the field of cyber-security company Cylance.
“With the exception of Cylance, sales were down slightly,” Li said.
BlackBerry, in February, completed its acquisition of California-based Cylance, which is the software that makes use of machine learning is in place for security breaches.
In the fourth quarter, adjusted income from Cylance, was $51 million, exceeding the average analyst estimate of $ 48.8 million.
The net loss narrowed to $35 million, or 9 cents a share, in the quarter ended May 31 of about $60 million, or 11 cents a share, a year earlier.
Excluding one-time items, the company earned 1 cent per share, in line with analysts’ estimates.
BlackBerry shares were last down 8.6% at C$9.95.
Reporting Debroop Roy in Bengaluru; Editing by Maju Samuel and Sweta Singh