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BlackBerry Anticipates Decline in Quarterly Revenue; Shares Plummet

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BlackBerry Expects 21.4% Decline in Q2 Revenue

Weakness in Cybersecurity Segment Impacts Sales

(Reuters) – BlackBerry forecast a 21.4% decline in its second-quarter revenue due to weakness in the Canadian technology company’s cybersecurity segment, sending its U.S.-listed shares nearly 10% lower in extended trading on Wednesday.

Preliminary Results and Revenue Expectations

In its preliminary results announcement for the quarter, the company said it expects revenue of about $132 million, compared with $168 million last year. Four analysts polled by LSEG expect BlackBerry to report sales of $156.9 million.

Impact of Delayed Deals

“Given the product mix, delays in closing certain large deals are expected to impact revenue recognized in the quarter,” said BlackBerry’s Executive Chair and CEO, John Chen.

Potential Acquisition Offer

In August, media reports said private equity firm Veritas Capital made an offer to buy BlackBerry, months after the Canadian company began a strategic review.

Cybersecurity Revenue Projection

The company expects revenue in its cybersecurity unit to be about $80 million, lower than $111 million last year.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Devika Syamnath)

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