BlackBerry Forecasts Lower Annual Revenue due to Weak Demand for Cybersecurity Services

The Blackberry logo is seen on a smarphone in front of a displayed stock graph in this illustration taken February 5, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
The Blackberry logo is seen on a smarphone in front of a displayed stock graph in this illustration taken February 5, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
TT
20

BlackBerry Forecasts Lower Annual Revenue due to Weak Demand for Cybersecurity Services

The Blackberry logo is seen on a smarphone in front of a displayed stock graph in this illustration taken February 5, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
The Blackberry logo is seen on a smarphone in front of a displayed stock graph in this illustration taken February 5, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

Canada's BlackBerry forecast a revenue decline in fiscal 2026 on Wednesday, as it anticipated weak spending on its cybersecurity products.

US-listed shares of the Waterloo, Ontario-based company fell 4% in premarket trading.

BlackBerry, once a dominant force in the smartphone market, has transitioned into selling software for devices and autonomous vehicles.

But enterprises are now reining their technology spending and optimizing costs, which in turn is affecting firms like BlackBerry.

The company forecast revenue to be between $504 million and $534 million for the financial year ending in February next year, lower than $534.9 million it reported in fiscal 2025, Reuters reported.

BlackBerry expects its cybersecurity unit, which provides intelligent security software to enterprises and governments, to report annual revenue between $230 million and $240 million, lower than the $272.6 million in the previous financial year.

The company posted revenue of $141.7 million for the fourth quarter, lower than $152.9 million it reported a year ago.

BlackBerry said it completed the sale of the Cylance business, which uses machine learning to preempt security breaches, to Arctic Wolf for $160 million.

The company sold the Cylance business to redirect its focus to high-growth areas, and as the unit required significant levels of investment and was facing strong competition.



Huawei Chips Are One Generation Behind US but Firm Finding Workarounds, CEO Says 

A view shows a Huawei logo at Huawei Technologies France headquarters in Boulogne-Billancourt near Paris, France, January 9, 2025. (Reuters)
A view shows a Huawei logo at Huawei Technologies France headquarters in Boulogne-Billancourt near Paris, France, January 9, 2025. (Reuters)
TT
20

Huawei Chips Are One Generation Behind US but Firm Finding Workarounds, CEO Says 

A view shows a Huawei logo at Huawei Technologies France headquarters in Boulogne-Billancourt near Paris, France, January 9, 2025. (Reuters)
A view shows a Huawei logo at Huawei Technologies France headquarters in Boulogne-Billancourt near Paris, France, January 9, 2025. (Reuters)

Huawei Technologies' chips are one generation behind those of US peers but the firm is finding ways to improve performance through methods such as cluster computing, Chinese state media quoted CEO Ren Zhengfei as saying on Tuesday.

The chipmaker invests 180 billion yuan ($25.07 billion) in research annually and sees promise in compound chips - chips made from multiple elements - Ren said in an interview with the People's Daily newspaper of the governing Communist Party.

There is "no need to worry about the chip problem", Ren said, addressing concerns stemming from US export controls.

The article, published on the front page of the newspaper, come as top US and Chinese officials are set to resume trade talks for a second day in London where topics such US tech restrictions on China are expected to be discussed.

Since 2019, a slew of US export curbs, aimed at curbing China's technological and military advancements, have restricted Huawei and other Chinese firms from accessing high-end chips and the equipment needed to produce them from abroad.

Ren's comments are the first ever from him or Huawei about the company's advanced chipmaking efforts, which have become a flashpoint in US-China tensions.

Huawei is just one of many Chinese chipmakers, Ren said in the interview, adding: "The United States has exaggerated Huawei's achievements. Huawei is not that great. We have to work hard to reach their evaluation."

"Our single chip is still behind the US by a generation. We use mathematics to supplement physics, non-Moore's law to supplement Moore's law and cluster computing to supplement single chips and the results can also achieve practical conditions. Software is not a bottleneck for us," he said.

Cluster computing is when multiple computers work together. Moore's law refers to the speed of chip advancement.

HUAWEI'S LAUNCHES

Huawei's Ascend series of AI chips compete in China with offerings from Nvidia, the global leader in AI chips.

The US commerce department last month said the use of Ascend chips would be a violation of export controls.

Nvidia's AI chips are more powerful than Huawei's but the company has been barred by Washington from selling its most sophisticated chips to China, causing it to lose significant market share to Huawei.

In April, Huawei launched "AI CloudMatrix 384", a system that links 384 Ascend 910C chips in a cluster that companies can use to train AI models, which has been described by analysts as able to outperform Nvidia's GB200 NVL72 system on some metrics.

Dylan Patel, founder of semiconductor research group SemiAnalysis, said in an article that month that it meant that Huawei and China now had AI system capabilities that could beat Nvidia.

Nvidia and the US commerce department did not immediately respond to a request for comment on Ren's remarks.

Ren also said about a third of Huawei's annual research spending went to theoretical research while the rest was spent on product research and development.

"Without theory, there will be no breakthroughs, and we will not catch up with the United States."