BlackBerry CEO Expects ‘Tough’ Quarter Ending Late May Due to COVID-19 Impact
COVID-19 “unexpectedly impacted” BlackBerry’s technology solutions business, said CEO John Chen on a fiscal Q4 call Tuesday. “We expect this trend to continue over the near future due to the temporary global auto production shutdowns and related slowdowns of auto…
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sales.” Customers “have become more cautious in the decision-making related to capital expenditure and development,” said Chen. “Two large transactions with reliable customers” were delayed, harming results for Q4 ended Feb. 29, he said: It may recoup the lost deals later in calendar 2020 when “the business environment returns to normal.” The company anticipates a “tough” Q1 ending late May “due to the COVID-19 impact on our business,” said Chen. “This may linger into the second quarter, but we do anticipate a stronger second half” than the first, he said. “We do not believe this current global crisis changes BlackBerry’s strategy” toward “long-term profitability growth and value creation,” he said. Wednesday, Fiat Chrysler Automobiles US reported a 10% decline in Q1 sales. BlackBerry shares plunged 18.6% Wednesday to close at $3.36.