In a surprising turn of events, BlackBerry reported a profitable first quarter, attributed to increased client expenditure in its cybersecurity division, along with the steady expansion of its enterprise software in the automotive sector. As a result, the company’s shares on the US stock market saw a notable 5.79 percent surge during after-hours trading.
This Canadian technology firm capitalizes on the robust demand for its cybersecurity solutions due to the escalating security risks prevalent in the information technology industry. Notably, BlackBerry’s financial results for the quarter ended May 31 revealed an unexpected profit of 6 cents per share, defying analysts’ projections of a 5 cents per share loss.
Impressively, the company’s total revenue amounted to $373 million surpassing the average estimate of $160.4 million projected by industry analysts, according to IBES data from Refinitiv. Within its revenue breakdown, the cybersecurity business unit experienced a sequential increase of 5.5 percent, reaching $93 million. Additionally, licensing and other services contributed $235 million to the revenue, with a significant portion stemming from patent sales.
BlackBerry, renowned for its widely used business smartphones after its inception in 1997, made the decision to close its flagship business last year. Since then, the company has been actively seeking buyers for its legacy patents associated with its mobile devices. In March, BlackBerry entered into an agreement with Malikie Innovation Limited, entailing the sale of patents primarily linked to its mobile devices, potentially amounting to $900 million.
Headquartered in Waterloo, Canada, BlackBerry previously announced its intentions to conduct a comprehensive review of strategic alternatives, including the potential separation of its core business segments: cybersecurity and software systems.