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 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.