US Markets

BlackBerry misses revenue estimates, lowers outlook

Credit: REUTERS/RAFAEL MARCHANTE

Canada's BlackBerry Ltd on Tuesday cut the top end of its 2020 revenue forecast and posted lower-than-expected quarterly revenue, hit by weak demand for its software from companies and government agencies amid increasing competition.

Adds second-quarter estimates, full-year forecast, shares, background

Sept 24 (Reuters) - Canada's BlackBerry Ltd BB.TO, BB.N on Tuesday cut the top end of its 2020 revenue forecast and posted lower-than-expected quarterly revenue, hit by weak demand for its software from companies and government agencies amid increasing competition.

U.S.-listed shares of the company fell nearly 12% before the bell.

Once known for its phones, BlackBerry has pivoted to selling software such as those used in mobiles and by automakers, hoping to find a more stable source of revenue.

The company said it now expects current-year revenue to rise between 23% and 25%, compared to its earlier forecast of 23%-27%.

Waterloo, Ontario-based BlackBerry said net loss was $44 million in the second quarter ended Aug. 31, compared with a profit of $43 million a year earlier.

On a per share adjusted basis, the company broke even, in line with analysts' expectations.

Adjusted revenue rose about 22% to $261 million, missing estimates of $266 million, according to IBES data from Refinitiv.

(Reporting by Debroop Roy and Arunima Kumar in Bengaluru; Editing by Maju Samuel)

((Debroop.Roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1690; Reuters Messaging: debroop.roy.thomsonreuters.com@reuters.net))

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