BlackBerry misses revenue estimates, lowers outlook

Canada's BlackBerry Ltd 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.

US-listed shares of the company fell nearly 12pc 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 23pc and 25pc, compared to its earlier forecast of 23pc-27pc.

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 22pc to $261 million, missing estimates of $266 million, according to IBES data from Refinitive.

Meanwhile, BlackBerry may no longer be the big name in the smartphone industry it once was but it continues to make smartphones. However, a recent comment from a company executive suggests it won't be embracing 5G as quickly as some other companies.

The next-gen internet technology is now included on a variety of top-end phones, but a TCL executive - the company behind current BlackBerry handsets - has said the company has no plans to include 5G on a BlackBerry product, according to PocketLint.

General Manager of Marketing at TCL, Stefan Streit, told an audience "It's not an entertainment device and you can already get your email really fast. We can have a lot of fun with 5G and where to apply it - maybe in an 8K TV or a fridge…just not a BlackBerry."

That may seem like an odd choice considering how BlackBerry users are often business-focused and may benefit from the speed, but TCL is mostly now focusing on mid-range handsets and below, while 5G remains a flagship feature, so this isn't totally surprising.