BlackBerry on Tuesday reported a drop in cybersecurity revenue for the second quarter, as customers shifted their spending in an uncertain macroeconomic scenario, sending its stocks down about 3 percent in extended trading.
Microsoft, Citrix Systems, and International Business Machines are all competing in the security software industry, with revenue in the business falling 7.5 percent to $111 million (roughly Rs. 900 crore) than it did last year.
In a news call, the company said the revenue for cybersecurity segment in the third quarter is expected to be unchanged year on year.
The revenue from the company''s Internet of Things (IoT) division, which includes the QNX software for automotive customers, increased by 28 percent to $51 million (roughly Rs. 420 crore) as it signed up more customers.
BlackBerry''s QNX software is now integrated in over 215 million vehicles worldwide, owing to increasing demand for electric vehicles and connected-car technologies. Recently, the company has added international carmakers such as Ford Motor, Honda Motor, Mercedes-Benz, and Toyota Motor.
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According to IBES data, total revenue fell 4% to $168 million for the quarter ended August31.
The company, excluding other items, has experienced a loss of 5 cents per share, which is even greater than analysts'' expectations of a 7 cent loss.
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