The Waterloo-based tech firm dropped over 20 per cent in late afternoon trading after it reported a decline of about three per cent in revenue from its Internet of Things (IoT) division—which, along with its cybersecurity arm, Cylance, missed analyst estimates. (The Logic)
Talking point: BlackBerry has spent the past few years trying to transform itself from a phone company to one specializing in a variety of software services including IoT and cybersecurity. It acquired Cylance in February for US$1.4 billion, with the goal of offering products that make it difficult to hack self-driving cars. Not only is that division not hitting sales estimates, but Stuart McClure, who co-founded Cylance, is leaving BlackBerry. It’s not all bad news for the company—overall adjusted revenue was up, if also short of analyst expectations—but the slowdown in at least some areas will continue to hit the company. On a Tuesday call with investors, BlackBerry CEO John Chen said the company is “retooling” certain sales processes, which will have a negative impact on IoT sales for the next two quarters.