BlackBerry (NYSE:BB) witnessed a significant intra-day drop of over 15% today following the release of preliminary second-quarter results that fell short of expectations.
Although analysts had projected second-quarter revenue to reach $150.5 million, BlackBerry indicated that it anticipates reporting sales of $132 million.
Within the IoT (Internet of Things) business unit, revenue is predicted to be approximately $49 million, indicating a sequential growth of 9% compared to the prior quarter. In contrast, revenue for the cybersecurity business unit is expected to be around $80 million, which is lower than anticipated, with the company attributing this to certain large government deals not closing during the quarter.
While BlackBerry reaffirmed its full-year revenue outlook for the Cybersecurity and Licensing units, it revised the outlook for the IoT segments, citing factors such as altered production schedules at certain automakers.
As a result, the full-year revenue outlook for the IoT business unit now falls within the range of $225 million to $240 million.