BlackBerry (BB.TO) of Canada surprised investors by reporting a quarterly profit, driven by strong demand for cybersecurity services in the face of increasing online threats.
Despite a decrease in overall IT spending, cybersecurity-related expenses have remained steady as businesses and governments work to strengthen their systems against hackers.
Recent data breaches at companies like MGM Resorts International (MGM.N) and Caesars Entertainment (CZR.O) have highlighted the urgency for businesses to prioritize cybersecurity.
Before the announcement of the profit, BlackBerry had abandoned its plans for an initial public offering for its Internet of Things (IoT) business but still intends to separate the IoT and Cybersecurity businesses into fully standalone divisions.
CEO John Giamatteo stated, “Work has commenced to fully separate and significantly rightsize our businesses, and we expect to further reduce operating cashflow usage in Q4.”
Additionally, BlackBerry plans to streamline the corporate structure of the company so that each business unit can operate independently and profitably with positive cash flow.
For the fourth quarter, BlackBerry expects revenue in the range of $150 million to $159 million.
The company, based in Waterloo, Canada, reported an adjusted net profit of 1 cent per share in the quarter ending Nov. 30, compared with a loss of 5 cents per share a year earlier.
Revenue in the third quarter increased to $175 million from $169 million, surpassing analyst expectations of $173.5 million, according to LSEG data.