BlackBerry Reports Preliminary Second Quarter Fiscal Year 2024 Results
WEBWIRE – Wednesday, September 6, 2023
- Preliminary second quarter fiscal year 2024 revenue for BlackBerry is estimated to be approximately $132 million
- IoT business unit revenue expected to be approximately $49 million, representing 9% sequential growth
- Cybersecurity business unit revenue expected to be approximately $80 million, lower than expected, primarily due to certain large government deals not closing in the quarter
- Licensing and Other business unit revenue expected to be approximately $3 million
- Full-year revenue outlook for Cybersecurity and Licensing reiterated, IoT outlook adjusted to reflect factors including revised production schedules at certain automakers
BlackBerry Limited (NYSE: BB; TSX: BB) today provided a business update and announced selected, unaudited preliminary financial results for the three months ended August 31, 2023 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).
Like many software companies, our Cybersecurity business has experienced elongated sales cycles, particularly in BlackBerrys core government vertical, where we have a strong market position. Given the product mix, delays inclosing certain large deals are expected to impact revenue recognized in the quarter. However, we expect to close these deals this fiscal year and are therefore reiterating the full-year outlook for the Cybersecurity business unitgiven previously, said John Chen, Executive Chair & CEO, BlackBerry. Our IoT business unit continues tocapitalize on its large market opportunity and multi-year secular tailwinds by securing new design wins at a strong rate. However, in the short term we are seeing some automakers shift the start of software development programs, as well as production schedules, and therefore weve revised our current year revenue outlook, but not our long- term targets.
Preliminary Second Quarter Fiscal 2024 Financial Results:
- Total company revenue expected to be approximately $132 million.
- IoT revenue expected to be approximately $49 million.
- Cybersecurity revenue expected to be approximately $80 million.
- Licensing and Other revenue expected to be approximately $3 million.
Outlook:
BlackBerry reiterates its full-year revenue guidance for both Cybersecurity and Licensing and Other.
Given the potential impact of factors that include, rescheduling of software development programs and production schedules at certain large automakers and uncertainty in the macroeconomic environment, the full-year revenue outlook for the IoT business unit is now expected to be in the range of $225M to $240M.
Preliminary Financial Results:
The preliminary financial results for the second quarter ended August 31, 2023, are unaudited estimates, and are based on information available to management as of the date of this release and are subject to potential further material changes upon completion of the Companys standard quarter-end closing procedures. In preparing this information, management has made subjective estimates about the appropriateness of certain reported amounts and disclosures. BlackBerrys actual financial results for the three months ended August 31, 2023, have not yet been finalized and remain subject to the completion of managements final review and our other closing procedures.
These preliminary estimated results do not represent a comprehensive statement of all financial results for the three months ended August 31, 2023.
Earnings Conference Call and Webcast:
A conference call and live webcast will be held on Thursday, September 28, 2023 beginning at 5:30 p.m. ET, which can be accessed using the following link (here) or through the Companys investor webpage (BlackBerry.com/Investors) or by dialing toll free +1 (877) 270-2148 and entering Elite Entry Number 6312676.
A replay of the conference call will be available at approximately 8:30 p.m. ET on Thursday, September 28, 2023, using the same webcast link (here) or by dialing Canada toll free +1 (855) 669-9658 or US toll free +1 (877) 344- 7529 and entering Replay Access Code 4522458.
About BlackBerry
BlackBerry (NYSE: BB; TSX: BB) provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500M endpoints including over 235M vehicles. Based in Waterloo, Ontario, the company leverages AI and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy solutions, and is a leader in the areas of endpoint management, endpoint security, encryption, and embedded systems. BlackBerrys vision is clear – to secure a connected future you can trust.
BlackBerry. Intelligent Security. Everywhere.
For more information, visit BlackBerry.com and follow @BlackBerry.
Investor Contact:
BlackBerry Investor Relations
+1 (519) 888-7465
investorrelations@blackberry.com
This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding BlackBerrys plans, strategies and objectives including its expectations with respect to its second quarter and full fiscal year 2024 financial results, and the timing, structure and financial impacts of certain contracts under negotiation.
The words expect, anticipate, estimate, may, will, should, could, intend, believe, target, plan and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, the matters noted above under preliminary financial results, BlackBerrys expectations regarding its business, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, competition, and BlackBerrys expectations regarding its financial performance. Many factors could cause BlackBerrys actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: BlackBerrys strategic review of its businesses, including risk related to BlackBerrys ability to realize the benefits of any strategic alternatives being explored and risk that uncertainty relating to the review may adversely impact the Companys business and relationships with its partners, customers and employees; BlackBerrys ability to enhance, develop, introduce or monetize products and services for the enterprise market in a timely manner with competitive pricing, features and performance; BlackBerrys ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; the occurrence or perception of a breach of BlackBerrys network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; the failure or perceived failure of BlackBerrys solutions to detect or prevent security vulnerabilities; BlackBerrys continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; litigation against BlackBerry; BlackBerrys dependence on its relationships with resellers and channel partners; acquisitions, divestitures and other business initiatives; the impact of the COVID-19 pandemic; network disruptions or other business interruptions; BlackBerrys ability to foster an ecosystem of third-party application developers; BlackBerrys products and services being dependent upon interoperability with rapidly changing systems provided by third parties; BlackBerrys ability to obtain rights to use third-party software and its use of open source software; failure to protect BlackBerrys intellectual property and to earn expected revenues from intellectual property rights; BlackBerry being found to have infringed on the intellectual property rights of others; the substantial asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; BlackBerrys indebtedness; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the use and management of user data and personal information; government regulations applicable to BlackBerrys products and services, including products containing encryption capabilities; environmental, social and governance expectations and standards; the failure of BlackBerrys suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; regulations regarding health and safety, hazardous materials usage and conflict minerals; foreign operations, including fluctuations in foreign currencies; adverse economic, geopolitical and environmental conditions; the fluctuation of BlackBerrys quarterly revenue and operating results; the volatility of the market price of BlackBerrys common shares; and rising inflation.
These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerrys Annual Report on Form 10-K and the Cautionary Note Regarding Forward-Looking Statements section of BlackBerrys MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerrys forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerrys shareholders to view the anticipated performance and prospects of BlackBerry from managements perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerrys financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerrys business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. Any forward-looking statements are made only as of today and the company has no intention and undertakes no obligation to update or revise any of them, except as required by law.
WATERLOO, ONTARIO – WEBWIRE – Friday, August 12, 2022 BlackBerry Limited (NYSE: BB; TSX: BB) and Corvus Insurance today released the BlackBerry Cyber Insurance Coverage study, showing businesses are increasingly concerned about how they will meet ransomware demands. Only 19 percent of those surveyed have ransomware coverage limits above $600,000, while over half (59 percent) hoped the government would cover damages when future attacks are linked to other nation-states.
Small-to-medium sized businesses (SMBs) who have become a favorite criminal target are especially feeling the heat. Of businesses with under 1,500 employees, only 14 percent have a coverage limit in excess of $600,000. A recent Forrester report estimated that a typical data breach would cost the average organization $2.4 million to investigate and recover. Perhaps unsurprisingly, 50 percent of SMB respondents hoped the government would increase financial aid in all ransomware incidents.
Not only are there more ransomware threats than ever, but the criminals are more ruthless. They will iterate threats and wait patiently in order to extract maximum damage, said Shishir Singh, Executive Vice President and CTO, Cybersecurity at BlackBerry. For uninsured and underinsured organizations, this potentially puts them in extreme jeopardy. The cyber underground is increasingly sharing learnings and partnering to make threats as efficient as possible. Its vital businesses strengthen their security posture against these threats by supplementing insurance with a prevention-first software approach that lowers their overall risk.
Many businesses reported cybersecurity coverages that are poorly tailored to their current situation. Over one-third (37 percent) of respondents arent currently covered for any ransomware payment demands, while 43 percent arent covered for auxiliary costs such as court fees or employee downtime.
At the same time, cyberinsurance has become harder to get, due to increased software requirements placed by insurance brokers. Over one-third (34 percent) of respondents have been denied coverage due to not meeting specific Endpoint Detection and Response (EDR) software requirements. These increased requirements however may be having a real impact on reducing ransom payouts.
Though it might sound counterintuitive, continuing to adhere to software requirements is one of the best ways to fight the ransomware industry, said Vincent Weafer, CTO at Corvus. In our portfolio alone, weve seen a 50 percent reduction in the ratio of ransom demands that end up being paid. Better software adoption is a critical element in better positioning organizations to stand up to attackers.
For additional information on the BlackBerry Cyber Insurance Coverage study, please visit the BlackBerry blog.
Research Methodology
BlackBerry commissioned TEAM LEWIS Research to run an online survey of 450 business decision makers for IT / security solutions in the United States and Canada. The fieldwork took place between July 15 and July 22, 2022.
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About BlackBerry
BlackBerry (NYSE: BB; TSX: BB) provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500M endpoints including over 215M vehicles. Based in Waterloo, Ontario, the company leverages AI and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy solutions, and is a leader in the areas of endpoint security, endpoint management, encryption, and embedded systems. BlackBerrys vision is clear – to secure a connected future you can trust.
About Corvus
Corvus Insurance is building a safer world through insurance products and digital tools that reduce risk, increase transparency, and improve resilience for policyholders and program partners. Our market-leading specialty insurance products are enabled by advanced data science and include Smart Cyber Insurance®, Smart Tech E+O, and Smart Cargo®. Our digital platforms and tools enable efficient quoting and binding and proactive risk mitigation. Corvus Insurance offers insurance products in the US, Middle East, Europe, Canada, and Australia. Current insurance program partners include AXIS Capital, Crum & Forster, Hudson Insurance Group, certain underwriters at Lloyds of London, R&Q Accredited, SiriusPoint, and Skyward Specialty Insurance. Corvus Insurance, Corvus London Markets, and Corvus Germany are the marketing names used to refer to Corvus Insurance Agency, LLC; Corvus Agency Limited; and Corvus Underwriting GmbH. All entities are subsidiaries of Corvus Insurance Holdings, Inc. Corvus Insurance was founded in 2017 and is headquartered in Boston, Massachusetts with offices across the US, in the UK, and Germany. For more information, visit corvusinsurance.com.
SAN FRANCISCO, UNITED STATES – WEBWIRE – Wednesday, June 8, 2022 BlackBerry Limited (NYSE: BB; TSX: BB) today announced a number of enhancements to the BlackBerry Partner Program to help Managed Security Service Providers (MSSPs) capture the exploding demand among small and medium-sized businesses (SMBs) for 24x7x365 Managed Extended Detection and Response (XDR) services, a market which industry experts expect will grow from $22.45 billion in 2020 to $77.01 billion by 2030.
BlackBerrys 2022 Threat Report found SMBs experience 11-13 attacks every day. Amidst this growing threat landscape, the company has significantly increased its MSSP focus, launching new marketing incentives, a global hiring campaign to boost partner support and a revamped curriculum of training, tools and enablement resources to aid overall go-to-market efforts.
Enhancements include:
The expanded investment and support for MSSPs comes following last months joint warning from the Five Eyes Alliance of security authorities from the United Kingdom, Australia, Canada, New Zealand and the United States, highlighting an increase in malicious cyber activity targeting managed service providers (MSPs) and urging them to protect the IT supply chain with a fresh set of cybersecurity measures.
With headline-grabbing hacks and a cybersecurity talent gap showing no signs of letting up, SMBs have never been more under-staffed or ill-prepared to meet the challenges posed by the continuously evolving threat landscape, said Colleen McMillan, VP, Global Channel Sales at BlackBerry. Our top 20 MSSPs have grown more than 50 per cent year over year and demand for human threat experts is through the roof. To that end, BlackBerry is doubling down and increasing our focus on our MSSP partners to ensure theyre set up for success.
For more information on the BlackBerry Partner Program please visit www.blackberry.com/partners or drop by the BlackBerry booth (#5665) in the North Expo at RSA Conference 2022.
About BlackBerry
BlackBerry (NYSE: BB; TSX: BB) provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500M endpoints including over 195M vehicles. Based in Waterloo, Ontario, the company leverages AI and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy solutions, and is a leader in the areas of endpoint management, endpoint security, encryption, and embedded systems. BlackBerrys vision is clear – to secure a connected future you can trust.
BlackBerry. Intelligent Security. Everywhere.
For more information, visit BlackBerry.com and follow @BlackBerry.
Trademarks, including but not limited to BLACKBERRY and EMBLEM Design are the trademarks or registered trademarks of BlackBerry Limited, and the exclusive rights to such trademarks are expressly reserved. All other trademarks are the property of their respective owners. BlackBerry is not responsible for any third-party products or services.
Toradex supports the design and development of secure, mission-critical embedded solutions using BlackBerry QNX 03 Nov 2020, Horw, Switzerland: Toradex AG (“Toradex”), an innovative leader in System on Modules, today announced that it will offer BlackBerry® QNX® software and services to its broad embedded customer base across North America, EMEA and APAC. Toradex joins the BlackBerry® QNX® Channel Partner Program, a worldwide network of value-added integrators, distributors and reseller experts trained on QNX technologies. Under the agreement, Toradex will support BlackBerry QNX® Neutrino® RTOS on its Colibri iMX8X and Apalis iMX8X System on Modules (SOMs). This partnership will enable Toradex’s customers to build upon BlackBerry QNX’s embedded software foundation to develop secure and safety-critical solutions for the domestic and international markets. “We partnered with BlackBerry QNX to give our customers simple access to a highly safe and secure OS, that is ideal for critical applications. QNX is a great match for our latest i.MX 8 based System on Modules with many features focusing on safety and security. The collaboration allows customers to get started with the QNX operating system in just a few minutes,” said Daniel Lang, CMO, Toradex. “We are very pleased to welcome Toradex to the BlackBerry QNX Channel Partner Program,” said Dhiraj Handa, VP, Channel, Partners and APAC, BlackBerry Technology Solutions. “We look forward to helping their customers further accelerate the design, development, integration and testing of safety-critical embedded systems and devices.” Toradex System on Modules (SoMs) are designed for demanding applications in verticals such as healthcare, industrial automation and transportation. The Apalis iMX8 features the NXP® i.MX 8QuadMax applications processor, and the Colibri iMX8X and the Apalis iMX8X are based on the NXP i.MX 8X applications processor. The i.MX 8 and i.MX 8X utilize the 28nm advanced FDSOI silicon process to increase MTBF and decrease soft error rates. All the modules come with Error-Correcting Code (ECC) memory on caches and the Apalis iMX8X also provides ECC RAM. ECC memory improves the reliability and simplifies functional safety certifications. Join experts from BlackBerry and Toradex on Nov 5th for a jointly-led webinar on best practices for UX Design and how to build a safe and secure medical device, from the operating system on up. About TORADEX AG Toradex products and services enable customers to achieve the lowest total cost of ownership. Since 2003, Toradex develops products used by more than 3000 customers, many of which are used in critical applications in harsh environments. All Toradex manufacturing partners are ISO 9001 certified. Media Contact: lakshmi.naidu@toradex.com
BlackBerry Cyber Insurance Study Reveals Businesses Hope for Greater Assistance in Paying Ransomware Demands
BlackBerry Helps Channel Partners Tap Exploding Managed Security Service Market
Toradex joins BlackBerry QNX Channel Partner Program to Deliver Safety-Critical and Secure Software Solutions
To learn about the BlackBerry QNX Channel Partner Program, visit https://blackberry.qnx.com/en/partners/qnx-partner-directory
Toradex is a global company headquartered in Switzerland. It is focused on offerings to make highly-reliable embedded computing easy. Toradex offers Arm®-based System on Modules (SoMs) and customized Single Board Computers (SBCs). These pin-compatible SoMs offer scalability and come with free premium support, long-term product availability and industrial-grade software such as Torizon.
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