BlackBerry Limited (NYSE:BB) shares are trading higher on Wednesday. The company announced details of profitability for its IoT and Cybersecurity divisions, including strategic options for the Cylance business.
BlackBerry projects FY25 cyber revenues between $350 million and $365 million. The company is optimistic about achieving break-even results, signaling a potential turnaround after previous challenges.
In a press release dated September 26, the company said it expects FY25 revenues of $591 million – $616 million.
In addition to its financial forecasts, BlackBerry is exploring strategic options for its Cylance business, which specializes in AI-driven cybersecurity solutions.
This move comes as part of a broader initiative to streamline investments in Cylance, aiming to enhance operational efficiency while increasing capital allocation for growth areas, specifically in secure communications and the Internet of Things (IoT).
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The adjusted EBITDA forecast for FY25 in Cylance Financials unit stands at $(51) million.
BlackBerry confirmed that it has achieved $100 million in cost reductions in the Cyber division over the last four quarters.
BlackBerry said it slashed 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.
“Establishing virtually autonomous divisions, and significantly streamlining costs in the process, has enabled us to deliver on our commitment to greater financial transparency by providing divisional profitability at today’s Investor Day event,” said Tim Foote, CFO, BlackBerry.
“We believe this will help provide investors with greater visibility into the progress that BlackBerry is making in driving towards profitable growth,” Foote added.
According to Benzinga Pro, BB stock has lost 30% in the past year.
Price Action: BB shares are trading higher by 5.6% to $2.63 at last check Wednesday.
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