BlackBerry Limited (NYSE:BB) shares are trading higher on Wednesday. The company announced details on the profitability of its IoT and Cybersecurity divisions, including strategic options for the Cylance business.
BlackBerry expects fiscal year 25 cyber revenues between $350 million and $365 million. The company is optimistic about achieving breakeven results, signaling a potential turnaround from previous challenges.
In a Sept. 26 press release, the company said it expects FY25 revenue of $591 million – $616 million.
In addition to the financial forecasts, BlackBerry is exploring strategic options for its Cylance business, which specializes in AI-driven cybersecurity solutions.
This move is part of a broader initiative to streamline investments in Cylance, with the aim of improving operational efficiency while increasing capital allocation to growth areas, particularly in the areas of secure communications and the Internet of Things (IoT) .
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The FY25 adjusted EBITDA forecast in the Cylance Financials unit is $(51) million.
BlackBerry confirmed it has achieved $100 million in cost savings in its Cyber division over the past four quarters.
BlackBerry said it reduced gross debt by $165 million in January 2024 and expects to return to positive cash flow in the fourth quarter of the current fiscal year.
“Creating virtually autonomous divisions, and significantly streamlining costs in the process, has allowed us to deliver on our commitment to greater financial transparency by delivering divisional profitability at today’s Investor Day event,” said Tim Foote, BlackBerry CFO.
“We believe this will help investors better understand the progress BlackBerry is making in its pursuit of profitable growth,” Foote said.
According to Benzinga Pro, BB stock is down 30% in the past year.
Price promotion: BB shares are trading 5.6% higher at $2.63 at last check on Wednesday.
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