BlackBerry forecasts upbeat quarterly revenue, says turnaround complete

By Kritika Lamba

April 9 (Reuters) - ‌BlackBerry on Thursday ​forecast ​first-quarter revenue above estimates, as the Canadian software company's turnaround gains traction on the back of strong demand across its cybersecurity ‌and embedded software divisions.

U.S.-listed shares of the company jumped more than ⁠10% in premarket trading.

The company, once a dominant force in smartphones, has over recent years ‌pivoted to software for connected ‌devices and autonomous vehicles. It said it has now completed its turnaround plan and emerged with a stronger balance sheet.

Momentum continued in its QNX ​division, which provides secure, real-time operating systems used in mission-critical embedded systems, most notably in automobiles.

Revenue at QNX rose 20% to $78.7 million in ⁠the fourth quarter, while the royalty backlog increased to approximately $950 million.

Chief Executive John Giamatteo said the unit's ​deep integration into safety-critical systems shields it from broader technology disruption.

"Our business is much more immune to 'SaaSmageddon' because these are ​highly regulated, complex, mission‑critical solutions," Giamatteo told ‌Reuters. "That strengthens our position versus any kind of generic AI product that might come to market."

BlackBerry's secure communications business, which ⁠generates about 75% of its revenue from government customers, posted an 8% increase in revenue to $72.5 million during the quarter.

CFO Tim Foote said the company plans to ⁠step up investment in its QNX business in the coming fiscal year, particularly in sales ​and marketing, to expand into adjacent markets such as physical AI, robotics and medical applications.

"I think you'll see us in a position to make some moves, from M&A tuck‑ins ‌to help accelerate growth on the QNX side of the business, and then maybe, opportunistically, looking at buybacks," CEO ‌Giamatteo said.

The company sees first-quarter revenue between $132 million and $140 million, compared with analysts' ⁠estimates of $129.9 million, according to ‌data compiled by LSEG.

For the ​fourth quarter the company posted revenue of $156 million, above analysts' estimates of $144.4 million.

(Reporting by Kritika Lamba in Bengaluru; Editing by ‌Tasim Zahid)

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