Kalkine Media - Over the past few years, one thing has been clear: technology is progressively driving advancements in many business-related fields. The Canadian technology company BlackBerry (TSX: TSX:BB) is establishing itself as a major player in the embedded systems and cybersecurity sectors.
The BB stock has witnessed growth this year; as of writing, it was up over 30 per cent year-to-date (YTD). Since the past week, the BB stock has gone up by 16 per cent.
Machine-to-machine connection is the core of BlackBerry's embedded systems business in the "Internet of Things" (IoT) era. This needs connectivity across various industries, including the industrial and medical sectors. However, embedded systems are also required in the auto industry, especially electric vehicles.
BlackBerry's QNX car software division had a great fiscal year, 2023. For instance, the backlog reached a record high of $640 million, while design wins set a new high. This makes sense because major automakers like Volvo and BMW increasingly use BlackBerry as their core software.
As a result, BlackBerry's IoT business seems to have upside potential. The company's management has projected 17 to 21 per cent sales growth for this company's upcoming fiscal year.
Recently, BlackBerry and Adobe (NASDAQ:ADBE) declared their collaboration to provide a secure mobile forms solution. The program satisfies the high-security standards demanded by regulated industries and is built for major mobile device platforms.
Latest earnings of BlackBerry
In Q4 2023, the company's revenue was US$ 151 million and US$ 656 million in the fiscal year 2023. BlackBerry's total GAAP gross margin and non-GAAP margin were 66 per cent and 67 per cent, respectively.
The company also announced its patent sale to Malikie Innovations Limited for up to US$ 900 million. It also announced the first BlackBerry IVY™ design win as Dongfeng Motor chose PATEO digital cockpit for its next model.
Notably, the company's total cash, cash equivalents and investments amounted to US$ 487 million in Q4 2023.
Bottom line
On April 4, the BB stock gained 1.47 per cent and closed at US$ 6.2 per share. The company's market capitalization was US$ 3.6 billion, and its price-to-book (P/B) ratio was 2.1.