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The Blackberry logo is seen on an office tower in Irvine, California, USA, October 20, 2020. REUTERS/Mike Blake/File Photo Acquire license rights
Sep 6 (Reuters) – BlackBerry (BB.TO) forecast its sales to fall 21.4% in the second quarter on weakness in the Canadian tech company’s cybersecurity segment, and its US-listed shares fell nearly 10 in extended trading on Wednesday % fall.
In its announcement of preliminary results for the quarter, the company said it expected revenue of approximately $132 million, compared to $168 million a year ago. Four analysts polled by LSEG expect BlackBerry to generate $156.9 million in revenue.
“Given the product mix, delays in closing certain large deals are expected to impact revenue generated in the quarter,” said John Chen, executive chairman and CEO of BlackBerry.
According to media reports, private equity firm Veritas Capital made an offer to buy BlackBerry in August, months after the Canadian company began a strategic review.
The company expects revenue from its cybersecurity unit to be about $80 million, down from $111 million last year.
Reporting by Jaiveer Singh Shekhawat in Bengaluru; Edited by Devika Syamnath
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