Tech Stock Under Pressure: BlackBerry Ltd (NYSE: BB)

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BlackBerry Ltd (NYSE:BB) stock fell over 5.4% in the pre-market session of March 31st, 2021 (Source: Google finance) after the company missed the revenue estimates for the fourth quarter of FY 20, hit by poor demand for its cybersecurity products and QNX car software.

The company has reported Software and Services non-GAAP revenue for the fourth quarter of fiscal 2021 of $165 million. Licensing and Other GAAP and non-GAAP revenue for the fourth quarter of fiscal 2021 was $50 million. The company has delivered Non-GAAP gross margin of 73% and Non-GAAP operating earnings of $18 million. Total cash, cash equivalents, short-term and long-term investments were $804 million at the end of the fourth quarter. The company generated net cash from operating activities of $51 million in the quarter.

BlackBerry Ltd, NASDAQ:BBRY

Meanwhile, during the fourth quarter BlackBerry had signed an exclusive negotiation with a North American entity for the potential sale of part of the patent portfolio relating primarily to mobile devices, messaging and wireless networking. The Company has limited its patent monetization activities due to the ongoing negotiations. If the Company had not been in negotiations during the quarter, the company believed that Licensing revenue would have been higher.

BB in the fourth quarter of FY 20 has reported the adjusted earnings per share of 3 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 3 cents, according to financial data firm Refinitiv. The company had reported the adjusted revenue to $210 million in the fourth quarter of FY 20, missing the analysts’ estimates for revenue of $248.14 million.

On the other hand, the company recently announced the establishment of the BlackBerry IVY Innovation Fund to help data-driven automotive ecosystem providers turbocharge their innovation and bring new products and applications to market using BlackBerry’s Intelligent Vehicle Data Platform, BlackBerry IVY. The BlackBerry IVY Innovation Fund’s mission is meant to increase the expansion of the BlackBerry IVY ecosystem with innovative transportation solutions. The Fund is initially planned to allocate up to $50 million to invest in startups focused on developing data-driven solutions that can benefit from BlackBerry IVY’s AI insights and support from BlackBerry and AWS.

Additionally, the company during the quarter expanded its partnership with Baidu to power next generation autonomous driving technology. Scania has chosen BlackBerry QNX as the safety critical operating system and hypervisor in its next generation of heavy goods vehicles.

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