BlackBerry reports surprise gain on its cybersecurity strength

June 28 (Reuters) – BlackBerry (BB.TO) on Wednesday reported surprise first-quarter earnings as its cybersecurity business benefited from higher consumer spending, while its enterprise software continued to gain traction in the automotive sector.

The company’s US-listed shares were up 5.79% in extended trading.

The Canadian technology company is counting on stable demand for its cybersecurity products in the face of increasing security threats in the information technology sector.

BlackBerry reported a surprise earnings of 6 cents per share for the quarter ended May 31, while analysts had expected a loss of 5 cents per share.

Total sales of $373 million beat analysts’ median estimate of $160.4 million, according to Refinitiv’s IBES data.

Revenue in the cybersecurity business increased 5.5% sequentially to $93 million, while revenue from licenses and other services was $235 million and consisted primarily of proceeds from patent sales.

BlackBerry, which went public in 1997 and soon became known for its ubiquitous business smartphones, closed its flagship business last year and has been trying to sell off its legacy patents related to its handsets ever since.

In March, the company signed an agreement to sell patents related primarily to its mobile devices to Malikie Innovation Limited for up to $900 million.

Waterloo, Canada-based BlackBerry previously announced its plans to conduct a review of strategic alternatives, including a possible separation of its core businesses – cybersecurity and software systems.

(This story has been rearchived to correct a typo in the title)

Reporting by Akshita Toshniwal in Bengaluru; Edited by Shweta Agarwal

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