BlackBerry expects to report drop in quarterly revenue, shares dive

FILE PHOTO: The Blackberry logo is shown on a office tower in Irvine, California, U.S., October 20, 2020. REUTERS/Mike Blake/File Photo

(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.

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.

"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.

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.

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)