Blackberry (TSX:BB) shares fell almost 16% after the Canadian technology firm said it expects to report a significant drop in second quarter revenue due to challenges in its cybersecurity business.
Announcing its preliminary 2Q fiscal 2024 results on Thursday, Blackberry (TSX:BB) said it expects revenue of $132 million, down 21.4% from $168 million in the year-ago quarter.
Wall Street analysts had projected revenue of $188.1 million and a loss per share of $0.02 for the quarter, according to Zacks Consensus Estimate.
BlackBerry expects cybersecurity revenue of about $80 million, down from $111 million for the same period in fiscal 2023, due to large government deals not closing within the quarter.
“Given the product mix, delays in closing certain large deals are expected to impact revenue recognized in the quarter,” BlackBerry CEO John Chen said in a statement.
“However, we expect to close these deals this fiscal year and are therefore reiterating the full-year outlook for the cybersecurity business unit given previously.”
The company will report its full 2Q results after the closing bell on Thursday, September 28.
BlackBerry’s Toronto-listed shares were down 15.8% at C$6.41 at noon on Thursday.
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