(Reuters) – Canadian maker BlackBerry reported a surprise quarterly profit on Wednesday, supported by resilient demand for cybersecurity services amid growing online threats.
While IT spending has declined over the past year, cybersecurity spending has remained stable as businesses and governments work to harden their systems against hackers.
In recent months, casino giants such as MGM Resorts International and Caesars Entertainment have faced major data breaches, forcing companies to prioritize cybersecurity.
Earlier this month, BlackBerry abandoned plans for an IPO for its Internet of Things (IoT) business, but still plans to split the IoT and Cybersecurity businesses into fully standalone divisions.
“Work has begun to completely separate and significantly right-size our business, and we plan to further reduce the use of operating cash flow in the fourth quarter,” CEO John Giamatteo said.
BlackBerry also plans to simplify the company’s corporate structure so that each business unit can operate independently and on a profitable, cash flow-positive basis.
BlackBerry expects fourth-quarter revenue of between $150 million and $159 million.
The Waterloo, Canada-based company reported adjusted net income of 1 cent per share in the quarter ended Nov. 30, compared with a loss of 5 cents per share a year earlier.
Third-quarter revenue increased from $169 million to $175 million. Analysts on average expected revenue of $173.5 million, according to LSEG data.
The company’s U.S.-listed shares fell 4% in extended trading.
(Reporting by Yamini Kalia in Bangalore; Editing by Krishna Chandra Eluri)
