BlackBerry Ltd reported its second quarter revenues which beat analysts’ estimate on the back of strong demand for its cybersecurity and Internet of Things software products.
BlackBerry’s U.S.-listed shares rose by 9.1% to $10.43 in extended trading. Ahead of the announcement of its results, it had already risen by 8%.
Companies like BlackBerry are benefiting from an uptick in demand from cybersecurity and IoT products following more government organizations and businesses shifting their operations to the cloud in order to support hybrid working.
As a result of this, BlackBerry was able to offset weakness from its sluggish demand from its QNX software from automakers, following the auto industry struggling to maintain production midst a persistent global shortage of chips.
BlackBerry’s stock has so far, surged by more than 40% this year.
The company has warned that a drop in the production volumes of the automobile sector along with COVID-19 closures and chip shortages will continue to adversely impact the company in the next two quarters, this fiscal year.
For the quarter ended August 31,revenues fell to $175 million, down from $259 million a year earlier; it however beat analysts’ estimiate of $163.5 million. Its net loss widened to $144 million, equivalent to 25 cents per share, from $23 million, equivalent to 4 cents per share, from a year earlier.
In a statement BlackBerry said a non-cash accounting adjustment to the fair value of convertible debentures, due to market and trading conditions, accounted for approximately $0.12 loss per share. Excluding items, the company posted a loss of 6 cents per share, from an analysts’ expectations of loss of 7 cents.