Blackberry (BB) & NXP Team Up to Thwart Quantum Cyberattacks

BlackBerry BB and NXP Semiconductors NXPI recently collaborated to prevent potential quantum computing attacks on in-vehicle software by boosting the adoption of quantum-secure cryptography.

As part of the agreement, BlackBerry will provide support for quantum-resistant secure boot signatures for the latter’s crypto-agile S32G vehicle networking processors. This will allow the software to be digitally signed using the CRYSTALS Dilithium digital signature scheme.

CRYSTALS Dilithium digital signature scheme is quantum-resistant and valuable for extending enhanced security to assets with long lifecycles like aerospace and military electronics systems, connected vehicles, industrial controls, critical infrastructure systems and infrastructure  in telecommunications and transportation verticals. 

BlackBerry’s Certicom Code Signing and Key Management Server will utilize the NXP S32G chip's secure boot flow to gain strong quantum protection, noted BlackBerry. The company further added that leveraging quantum-resistant signature schemes such as Dilithium for low-level device firmware, over-the-air software updates and software bills of material could reduce the scope of quantum computing attacks on critical software updates.

BlackBerry Limited Price and Consensus

BlackBerry Limited price-consensus-chart | BlackBerry Limited Quote

Though it is still in its nascent stage, quantum computing holds a lot of promise in the long term due to its massive processing power. At the same time, quantum computers are also being seen as the next big cybersecurity threat as these can easily bypass most of the existing security solutions. Therefore, tightening the current code signing and software update infrastructure becomes imperative to safeguard against such future security vulnerabilities.

BlackBerry stated that the White House, NATO and the National Institute of Standards and Technology (NIST) also have started working toward thwarting a 'Y2Q' scenario. Y2Q scenario refers to a situation where quantum computers are “weaponized” by bad actors to launch advanced cyberattacks.

Headquartered in Waterloo, Canada, BlackBerry provides intelligent security software and services to enterprises and governments worldwide. The company aligned its software and services business around two key market opportunities — Cyber Security and IoT.

BlackBerry is gaining from momentum in the cybersecurity business, supported by a robust pipeline of design wins and pipeline growth for unified endpoint security products

In the IoT business, BlackBerry is witnessing significant progress in the auto business despite headwinds related to the global chip shortage. BlackBerry QNX software is embedded in more than 195 million vehicles. BlackBerry QNX is the market leader for safety-certified embedded software in automotive.

The company outlined its long-term financial targets, which include achieving revenues of $1.213 billion by fiscal 2027 at a five-year CAGR of 13%. The company had reported revenues of $718 million in fiscal 2022 ended Feb 28, down 19.6% year over year.

For its IoT (excluding IVY) and Cybersecurity segment, BlackBerry expects to achieve $443 million and $770 million in revenues by fiscal 2027 at a five-year CAGR of 20% and 10%, respectively.

At present, BlackBerry carries a Zacks Rank #3 (Hold). Shares of BB have lost 40.8% compared with the industry’s decline of 5.2% in the past year.

Key Picks

A few better-ranked stocks from the broader technology sector worth consideration are InterDigital IDCC and Flex FLEX . InterDigital and Flex sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Flex’s fiscal 2023 earnings is pegged at $2.16 per share, up 6.9% in the past 60 days. The long-term earnings growth rate is pegged at 14.9%.

Flex’s earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 21.1%. Shares of FLEX have declined 12.4% in the past year.

The Zacks Consensus Estimate for InterDigital 2022 earnings is pegged at $3.28 per share, up 5.1% in the past 60 days. IDCC’s long-term earnings growth rate is pegged at 15%.

InterDigital’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 141.1%. Shares of IDCC have lost 23.9% of their value in the past year.

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