BlackBerry reports revenue up after purchase of USA cyber security company

Darnell Taylor
June 27, 2019

The stock fell as much as 10.1% but is down about 9% as of 12:30 p.m. EDT.

The company's first-quarter net loss was $35m, compared to $60m a year earlier, while diluted losses per share were $0.09 against 2018's loss of $0.11.

On an adjusted basis, BlackBerry reported a profit of a penny per diluted share and revenue of $267 million USA, up 23 per cent from a year ago.

Revenue for the former smartphone maker was up 16 per cent from $213 million United States in the same quarter previous year.

The Waterloo, Ont. -based company acquired Cylance, a California-based artificial intelligence and cyber security company, for $1.4 billion US.

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"I'm pleased to report that our integration of BlackBerry Cylance is ahead of schedule", Chen said on the conference call. Cylance will enable BlackBerry to add artificial intelligence capabilities to its existing software products. The company also supplies technology to companies developing driverless cars.

The technology will be used in infotainment systems, digital instrument clusters and telematics systems for internet-connected vehicles - one of the markets that BlackBerry sees as ripe for long-term revenue growth.

According to a statement from both companies, the expanded relationship builds on a long history of collaboration between LG and BlackBerry, and covers multiple next generation programmes from multiple OEMs from around the world.

Once the two product roadmaps are aligned to provide security from end-to-end - mobile to computer - there will be an upturn in revenue, he said. Revenue rose to $247 million from $213 million.

"BlackBerry has been a trusted supplier to LG for almost 15 years, providing flexible QNX-based software solutions th have helped them to deliver millions of high-quality systems to the world's leading automakers", says Kaivan Karimi, SVP and co-head, BlackBerry Technology Solutions.

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