Published by Global Banking and Finance Review
Posted on April 2, 2025
(Reuters) - Canada's BlackBerry forecast a revenue decline in fiscal 2026 on Wednesday, as it anticipated weak spending on its cybersecurity products.
U.S.-listed shares of the Waterloo, Ontario-based company fell 4% in premarket trading.
BlackBerry, once a dominant force in the smartphone market, has transitioned into selling software for devices and autonomous vehicles.
But enterprises are now reining their technology spending and optimizing costs, which in turn is affecting firms like BlackBerry.
The company forecast revenue to be between $504 million and $534 million for the financial year ending in February next year, lower than $534.9 million it reported in fiscal 2025.
BlackBerry expects its cybersecurity unit, which provides intelligent security software to enterprises and governments, to report annual revenue between $230 million and $240 million, lower than the $272.6 million in the previous financial year.
The company posted revenue of $141.7 million for the fourth quarter, lower than $152.9 million it reported a year ago.
BlackBerry said it completed the sale of the Cylance business, which uses machine learning to preempt security breaches, to Arctic Wolf for $160 million.
The company sold the Cylance business to redirect its focus to high-growth areas, and as the unit required significant levels of investment and was facing strong competition.
(Reporting by Kritika Lamba in Bengaluru; Editing by Leroy Leo)
