BlackBerry Ltd. (BB.TO) announced on Wednesday that it is exploring strategic options for its Cylance business, a move that has led to a more than 4% increase in the company’s shares. During an investor day presentation, the Canadian firm indicated its intention to redirect funding towards higher-growth sectors, given Cylance’s need for significant investment and its challenges in a competitive landscape.
Cylance, known for utilizing machine learning to prevent security breaches, is projected to report an adjusted core loss of $51 million for the current fiscal year. BlackBerry, once a leading player in the smartphone market, has pivoted towards software solutions for devices and autonomous vehicles, acquiring Cylance in 2019 for $1.4 billion.
The company plans to boost capital allocation to its secure communications and Internet of Things (IoT) sectors, both of which are profitable and identified as key growth drivers. Additionally, BlackBerry is working on separating its IoT and cybersecurity units into fully independent divisions. In July, it appointed Tim Foote as its new chief financial officer.
Looking ahead, BlackBerry forecasts adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for fiscal 2026 to reach approximately $50 million to $60 million, surpassing analysts’ expectations of $47.8 million. The company has also upheld its annual revenue outlook, estimating it will fall between $591 million and $616 million, with an EBITDA forecast of up to $10 million.
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