BlackBerry has reported an 8% decrease year-on-year in its cyber security revenue, although it increased its Internet of Things (IoT) revenue by 28% and attracted new customers to this part of its business.
The Canadian company reported its earnings for the last quarter today and revealed that its cyber security revenue was $111 million, 8% less than the year before. The revenue from this segment in the third quarter is expected to be flat year-on-year, BlackBerry added in an earnings call, as reported by Reuters.
In the security software industry, the company has had to compete with rivals like Microsoft, Citrix, and IBM, with BlackBerry also having to face customers spending less in general due to the uncertain economic conditions facing the global economy.
Despite this, its IoT revenue came to around $51 million, an increase of 28% year-on-year, with a gross margin of 82%. This includes its BlackBerry QNX software which is used in the automotive industry for the design of cars’ operating systems. It has managed to attract more customers here, adding Ford, GM, and Hyundai to its list of customers that already included Honda, BMW, Mercedes-Benz, and Toyota.
“This was a solid second quarter for BlackBerry, where we delivered both revenue in line with, and EPS ahead of, expectations,” said John Chen, executive chairman & CEO of BlackBerry. “Our IoT business continues to gain market share, and design-phase revenue remained at near-record levels.”
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Chen added that a major design win in the quarter was with Volkswagen, who chose QNX for its new VW.OS which will be deployed across all Volkswagen Group brands.
“In our cyber security business we delivered double-digit sequential billings growth, including securing significant business in both government and financial services, as well as in the middle market,” said Chen.
The total revenue for the company for the second quarter was $168 million, a fall of 4%. Its total software and services revenue was $162 million, with $6 million coming from licencing and other revenue.
Although bigger companies are suffering through the downturn in the global economy, it’s not potentially the same for smaller businesses. Recruiting giant Randstad said earlier this month that small businesses are in an unprecedented position to hire talent than would usually be taken by big tech companies. In an assessment of the market landscape, Randstad found that employers in small and medium-sized businesses (SMBs) should use this period to their advantage.
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Zach Marzouk is a former ITPro, CloudPro, and ChannelPro staff writer, covering topics like security, privacy, worker rights, and startups, primarily in the Asia Pacific and the US regions. Zach joined ITPro in 2017 where he was introduced to the world of B2B technology as a junior staff writer, before he returned to Argentina in 2018, working in communications and as a copywriter. In 2021, he made his way back to ITPro as a staff writer during the pandemic, before joining the world of freelance in 2022.