article-aa

The Waterloo-based firm reported a US$636-million loss—or US$1.14 a share—for the quarter ended May 31, down from a US$41-million loss for the same quarter last year. The company also cut US$594 million from the value of its Spark unit, a device-management platform. (The Globe and Mail)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: The company’s QNX car-operating system has lost revenue due to a slowdown in the auto sector during the pandemic. As of mid-June, BlackBerry had lost nearly 20 per cent in share value, precipitating its removal from the TSX blue-chip index. The company had been shedding value for years, however, falling from its peak of more than $84 billion to less than $4 billion. Its ouster from the blue-chip index could have a compounding effect on its share value. Still, in a call with analysts following the earnings report, CEO John Chen said turning a profit by the end of the fiscal was still in the cards.

article-aa

The Waterloo-based tech company shed 4.95 per cent at close Monday, after Index manager S&P Dow Jones Indices announced plans to remove the company from the Canadian index for failing to meet criteria around market value and trading liquidity. Shares of Bombardier, which was also clipped from the index, fell 11.54 per cent. The changes are effective June 22. (Reuters)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: Bombardier’s share value has dropped over 75 per cent this year, in large part due to the COVID-19 pandemic. BlackBerry’s fall is less intuitive. The firm has lost nearly 20 per cent in share value so far this year, despite reporting a 13 per cent year-over-year rise in software and services revenue in its most recent quarter. Like Bombardier, however, BlackBerry has been losing value for years—plummeting from a market cap of more than $84 billion at its height to less than $4 billion today. Their removals from the blue-chip index could have a compounding effect on the already-struggling stocks, as they will no longer benefit from investors who may invest in the whole index, but wouldn’t otherwise buy their stock.

article-aa

Five hacker groups with ties to the Chinese government have been extracting data from Linux operating systems—used by most of the world’s web and cloud servers—for a decade, often going unnoticed, according to a new report from the firm. (CTV News)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: The hacking campaigns sought to steal intellectual property the U.S. has deemed to be worth “multiple billions of dollars,” according to Eric Cornelius, BlackBerry’s chief product architect. He said the research highlights hacking tactics that the cybersecurity industry has missed in its focus on Windows breaches rather than Linux malware. The report into systemic cyber espionage comes as BlackBerry is increasingly focusing its efforts on cyber security offerings and software, away from producing mobile devices.

article-aa

TCL Communication will stop selling the devices in August 2020 and stop providing support for them in August 2022. BlackBerry did not reply to a request for comment regarding whether it intends to continue selling phones. (The Logic)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: BlackBerry decided to stop making its own phones in 2016, instead licensing out the rights to TCL. At its peak, BlackBerry had about 20 per cent of the global phone market. Today, TCL has about one per cent. The partnership ends as TCL is planning the release of its first 5G phone, which is set to hit the U.S. and Canada in the second quarter of this year. BlackBerry, for its part, is increasingly focused on cybersecurity and autonomous-vehicle software; while it was founded in Canada, the leadership spearheading the company’s effort is now based in California, as my colleague Catherine reported in March 2019.

article-aa

Revenues reached US$280 million in the quarter ended November 30, above the US$276 million that analysts predicted. The better-than-expected results were driven largely by demand in its patent licensing and the company’s cybersecurity businesses. Overall, BlackBerry lost US$32 million, down from a US$59-million profit a year earlier. Its stock was nonetheless up 12.71 per cent by close on Friday. (Reuters)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: The revenue growth is a departure from the company’s middling performance of late. In October, its stock hit a 16-year low after reporting a US$44-million loss in its second quarter. Investors had hoped the company would glean double-digit revenue growth in 2019, after pivoting from smartphones to data management and security, and buying Cylance, a California-based cybersecurity firm. In a conference call on Friday, BlackBerry CEO John Chen said the company hit a milestone the past quarter in integrating technology from the US$1.4-billion acquisition into its operations—the company reported US$40 million in revenue from Cylance in the quarter.

article-aa

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)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

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.

article-aa

The company wants to use rising concern over privacy to increase its sales in Asia from 8.4 per cent to between 10 and 12 per cent. Its latest security product uses artificial intelligence to track mobile devices for deviations in usage habits, including how users hold and swipe. Unusual patterns trigger security actions, like locking down the device. (Nikkei)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: BlackBerry is trying to increase its foothold in the Asian market after years of declining sales—in 2014, the region contributed 16.2 per cent of the company’s revenue. The firm’s footprint on the continent declined in the wake of its 2016 decision to stop making smartphones in favour of software and security services, an area for which it initially saw greater demand in North America. The trend toward digitalization in the Asia-Pacific region now has BlackBerry hoping to grow in countries like Singapore, Japan and South Korea. Political and trade tensions between China and the West could complicate the expansion, however, given BlackBerry’s mobile infrastructure support for the Five Eyes, an intelligence alliance between Australia, Canada, New Zealand, the U.K. and the U.S.

article-aa

On September 5, Judge George Wu made a tentative judgement that two of BlackBerry’s mobile messaging patents, over which the company was suing both U.S. tech giants, weren’t protected under U.S. law. Wu ruled similarly on two other patents over which BlackBerry was pursuing only Snap. (The Recorder)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: BlackBerry’s case isn’t dead yet—the company is still pursuing Snap over two patents, and Wu upheld two user interface patents over which the former company is suing Facebook. But if the judgment remains in place, it will also hurt BlackBerry’s case against Twitter, which includes two of the patents that Wu ruled were not protected. BlackBerry’s revenue from its intellectual property is a significant part of its business as it continues to grow its security offerings. The company brought in US$72 million in licensing revenue in its latest quarter, 29 per cent of its total US$247 million in sales.

article-aa

The workers are seeking severance or termination pay from their former employer. The employees allege that BlackBerry misled them when they accepted a transfer to Ford Motor Company of Canada, as part of a strategic partnership through the former’s QNX automotive software platform. BlackBerry allegedly told workers that refusing Ford’s offer wouldn’t guarantee them continued employment with BlackBerry; Ford, meanwhile, allegedly claimed that if they accepted the Ford offer, they would not be entitled to retain seniority or other such benefits they’d acquired at BlackBerry. The original notice of action, filed in 2017, sought both punitive damages and severance benefits for the terminated employees. (BNN Bloomberg, Globe and Mail)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: It’ll be the trial judge’s decision whether BlackBerry’s transfer was designed to end the plaintiffs’ employment without having to pay them severance. That will be difficult to prove, according to Justice Michel Charbonneau, who allowed the suit to proceed, though he said the theory is “not without merit.” Nelligan O’Brien Payne LLP, the law firm representing the plaintiffs, said it has advised others this week that they can still join the suit; the firm claimed in 2017 that over 100 workers in Ottawa, and at least 200 elsewhere in Canada, were affected.

article-aa

BlackBerry will still offer an enterprise version called BBMe for general customers through Google and Apple’s app stores. The service will be free for a year, and will then cost about $3.33 for a six-month subscription. (MobileSyrup)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: The loss of BBM will be a major headache for users, but—following the company’s shift away from phones and toward security services—doesn’t appear to be bothering the stock market, as the company’s stock was up 0.41 per cent in late-afternoon trading. BBMe has a fraction of the users its consumer version once did, but many security-conscious government workers still use the service. In 2018, the federal government announced BBMe licensing for all its smartphone users. People with the newer BBOS or BlackBerry 10 devices will not be affected by the change. BBM was a pioneer in the instant messaging space when it launched back in 2005. As of 2015, it had 190 million global users; WhatsApp currently has over 1.5 billion globally.