Published -June 29th, 2023 @ 10:28 AM (GMT+2)

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BlackBerry's Unexpected Q1 Profit and Share Surge

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In a surprising turn of events, BlackBerry Ltd. (NYSE:BB) posted an unexpected profit for the first quarter of its fiscal year, primarily due to the robust performance of its cybersecurity division. This unexpected profit led to a significant 5.79% boost in the company's shares in after-market trading​.
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Defying analysts' expectations of a 5 cent loss per share, BlackBerry announced an impressive profit of 6 cents per share for the quarter that ended on May 31. The company also reported a whopping total revenue of $373 million for the quarter, surpassing the forecasted $160.4 million.
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The key driver behind BlackBerry's successful quarter was its cybersecurity business unit, which saw sequential revenue growth of 5.5%, reaching $122 million. Furthermore, the company raked in $235 million from licensing and other services, primarily attributed to patent sales​.
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Strategic Shift: BlackBerry's Focus on Patent Sales
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In a strategic shift, BlackBerry, which gained popularity for its business smartphones, decided to close down its flagship business last year. Since then, the company has been actively selling its legacy patents related to its mobile devices. A significant development in this area was the deal it signed in March with Malikie Innovation Limited to sell patents mainly related to mobile devices for up to $900 million​.

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The quarter also saw the successful integration of CylanceGUARD with BlackBerry AtHoc. This integration extends the services reach to those with limited IT resources and CylanceGUARD subscribers, previously available only to more significant, well-resourced entities. On top of that, BlackBerry launched an AI-based version of its Cylance cybersecurity solutions portfolio, designed to reduce alert fatigue, expedite an incident response, and expand cloud defense coverage​.

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CEO John Chen expressed satisfaction with the quarter's results, attributing the sequential revenue growth in the cybersecurity business unit to an increase in billings and pipeline over the year. This growth was primarily driven by the company's core verticals, particularly the government sector​.

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BlackBerry's Solid Performance Beyond Patent Sale
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Even excluding the patent sale, BlackBerry displayed solid financial figures. The company reported a non-GAAP operating profit of $35 million for the quarter and held a total of $579 million in cash, cash equivalents, and long-term investments as of the end of May

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