(Reuters) – BlackBerry forecast a 21.4% drop in second-quarter revenue due to weakness in the Canadian tech company’s cybersecurity division, with U.S.-listed shares down 10% in extended trading on Wednesday.
In its first earnings call for the quarter, the company said it expects revenue of $132 million, compared to $168 million last year. Four analysts polled by LSEG expect BlackBerry to report sales of $156.9 million.
“Given the product mix, the delay in closing certain large deals is expected to have an impact on recognized revenue in the quarter,” BlackBerry executive and CEO John Chen said.
In August, media reports said private equity firm Veritas Capital had made an offer to buy BlackBerry, months after the Canadian company began a strategic review.
The company expects revenue in its cybersecurity unit to be about $80 million, down from $111 million last year.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Devika Samanam)
