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BlackBerry Stock Jumps on Narrower-Than-Expected Loss

BlackBerry reported a bottom-line beat and a decline in revenue. The shares are higher.

Shares of BlackBerry (BB) - Get BlackBerry Limited Report jumped after the security software and services company reported fiscal-second-quarter results ahead of analyst expectations amid an uptick in demand and a move to the cloud. 

BlackBerry shares at last check were up 11% to $10.58. 

For the quarter ended Aug. 31 the Waterloo, Ontario, company's net loss widened to $144 million, or 25 cents a share, from $23 million, or 4 cents a share, in the year-earlier quarter. 

BlackBerry reported an adjusted loss of 6 cents a share, stronger than analyst expectations --derived from a FactSet survey -- of a loss of 10 cents a share. 

Revenue fell to $223 million from $357 million a year earlier but topped analyst expectations of $202.6 million, according to FactSet.

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"The cybersecurity business unit delivered robust sequential billings and revenue growth and the [internet-of-things[ business unit performed well in the face of global chip shortage pressures," Chief Executive John Chen said in a statement.

BlackBerry says it has scored design wins with 24 of the world's leading 25 electric-vehicle makers. 

The company warned that a drop in auto production due to Covid-19 pandemic-related closures and chip shortages will hurt the company over the next two quarters. 

Still and all, the company said that it saw the past quarter as "the low point." 

The company maintained its full-year revenue outlook of between $495 million and $515 million. 

The company also named John Giametteo president of cybersecurity. Giametteo was previously president and chief revenue officer at McAfee.  (MCFE) - Get McAfee Inc. Report