By Ketki Saxena
Investing.com – BlackBerry (TSX:BB) was the biggest loser on the TSX today, down around 13% at midday.
BlackBerry stock was headed for the worst one-day performance since it plunged 21.1% on Feb. 2, 2021, after the company said it would take a large impairment charge and provided revenue guidance that below Wall Street projections.
BlackBerry announced last yesterday that it expects fourth-quarter revenue of approximately $151 million, below analyst consensus of $163.5 million.
Revenue for BlackBerry’s cybersecurity business is expected at $88 million, well below analyst consensus for $109.7 million. Revenue for its internet of things (IoT) business is expected at $53 million, marginally lower than analyst expectations for $54 million.
The company also announced that fourth-quarter results would include a goodwill impairment charge of up to $440 million for its Spark business.
BlackBerry Chief Executive John Chen commented, “Macro challenges were a key factor for BlackBerry’s Cybersecurity business unit this quarter, with elongated sales cycles in government causing some large deals to slip into later quarter”.
BlackBerry is scheduled to release its full financial results and provide its outlook for the year on March 30.