BlackBerry revenue dips 4% as cybersecurity demand drops

BlackBerry informed that its revenue fell 4 percent to $168 million for the quarter ended Aug. 31 as it faced a significant drop in cybersecurity revenue.
BlackBerry IoT businessBlackBerry’s cybersecurity revenue fell 7.5 percent to $111 million from a year ago, as customers reined in spending due to an uncertain macroeconomic environment.

BlackBerry faces competition from Microsoft, Citrix Systems and International Business Machines in the security software segment.

BlackBerry said in an earnings call that cybersecurity segment revenue in the third quarter is expected to be flat year-on-year.

BlackBerry’s Internet of things (IoT) unit revenue, which includes the QNX software for automotive customers, rose about 28 percent to $51 million as it signed up more customers.

BlackBerry’s QNX software is now embedded in over 215 million vehicles worldwide, helped by surging demand for electric vehicles and connected-car technologies.

BlackBerry recently added carmakers such as Ford Motor, General Motors, Hyundai Motor, to its already strong client list of BMW, Honda Motor, Mercedes-Benz and Toyota Motor.

BlackBerry in June said that a deal to sell its patents primarily related to mobile devices, messaging and wireless networking for $600 million to a special purpose vehicle has been delayed.