Reuters, September 6 - Due to difficulties in its cybersecurity business, BlackBerry (BB.TO) expects its second-quarter revenue to drop by 21.4%. This news caused its U.S.-listed shares to drop about 10% in extended trading on Wednesday.
The business predicted sales of roughly $132 million for the quarter in its preliminary results presentation, down from $168 million in the prior year. According to four analysts LSEG surveyed, BlackBerry will post revenues of $156.6 million. John Chen, executive chair and CEO of BlackBerry, stated that delays in finalizing some significant sales "are expected to impact revenue recognized in the quarter given the product mix."
Months after the Canadian business started a strategic review, private equity firm Veritas Capital reportedly made an offer to purchase BlackBerry in August, according to media sources. The business anticipates that its cybersecurity division would generate roughly $80 million in sales this year, down from $111 million in 2016.