"We see [growth] taking time and ultimately believe Fiscal Year 2016, ending February 2016, will be another transition year primarily due to weak hardware device sales. Based on our below-consensus device shipment estimate (<8M units) for FY16, BBRY is not likely to break even on the segment, which may call for strategic alternatives (sale/divestiture)," analysts said.
"We're in-line with management guidance on Service revenues but caution against downside risk for Software revenues due to faster than expected shrinkage in device installed base," analysts added.
Under CEO John Chen, BlackBerry has focused on staying relevant in enterprise software, as security becomes increasingly more important in the workplace. However, the company has had mixed success when it comes to monetizing the security technology.
On December 19, BlackBerry will report Fiscal 2015 third quarter earnings.
On average, analysts expect BlackBerry to incur a loss of five cents a share on revenues of $948.82 million for the third quarter. In the previous year quarter, it suffered a loss of 67 cents a share on revenue of $1.19 billion.
Notably, Ford said it is replacing Microsoft Corp. (MSFT) software used on its first two generations of in-car connectivity with Blackberry's QNX system for Sync 3, Reuters reported.