Blackberry Slips as Supply Issues at Automakers Slow Cybersecurity Demand By Investing.com

Blackberry Slips as Supply Issues at Automakers Slow Cybersecurity Demand By Investing.com
Blackberry Slips as Supply Issues at Automakers Slow Cybersecurity Demand By Investing.com© Reuters.

By Dhirendra Tripathi

Investing.com – BlackBerry stock (NYSE:) slumped 4% Wednesday after the company’s projection of fourth-quarter revenue from its cybersecurity solutions disappointed traders.

The company expects fourth-quarter revenue from the vertical to come in at $135 million at the top end, around 11% higher than Q4 Fiscal 2021. According to Refinitiv data, one analyst the company to peg that forecast at $143 million. On the lower side, the company expects cybersecurity to deliver $125 million in fourth-quarter revenue. That will mean just $3 million more on year-on-year basis and lower on a sequential basis.

The somber outlook comes as shortage of chips have crippled production at automakers, some of whom are Blackberry’s clients. Growth in the cybersecurity vertical, which accounts for more than half of the company’s revenue, has been sluggish, impacting the overall…

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