Mr. John Chen reports

BLACKBERRY REPORTS PRELIMINARY SECOND QUARTER FISCAL YEAR 2024 RESULTS

BlackBerry Ltd. today provided a business update and released selected, unaudited preliminary financial results for the three months ended Aug. 31, 2023 (all figures in U.S. dollars and U.S. GAAP (generally accepted accounting principles), except where otherwise indicated).

"Like many software companies, our cybersecurity business has experienced elongated sales cycles, particularly in BlackBerry's core government vertical, where we have a strong market position. Given the product mix, delays in closing certain large deals are expected to impact revenue recognized in the quarter. However, we expect to close these deals this fiscal year and are therefore reiterating the full-year outlook for the cybersecurity business unit given previously," said John Chen, executive chair and chief executive officer, BlackBerry. "Our IoT business unit continues to capitalize on its large market opportunity and multiyear secular tailwinds by securing new design wins at a strong rate. However, in the short term, we are seeing some automakers shift the start of software development programs as well as production schedules, and therefore we've revised our current-year revenue outlook but not our long-term targets."

Preliminary second quarter fiscal 2024 financial results:

• Total company revenue expected to be approximately $132-million;
• IoT (Internet of things) revenue expected to be approximately $49-million;
• Cybersecurity revenue expected to be approximately $80-million;
• Licensing and other revenue expected to be approximately $3-million.

Outlook

BlackBerry reiterates its full-year revenue guidance for both cybersecurity, and licensing and other.

Given the potential impact of factors that include, rescheduling of software development programs and production schedules at certain large automakers, and uncertainty in the macroeconomic environment, the full-year revenue outlook for the IoT business unit is now expected to be in the range of $225-million to $240-million.

Preliminary financial results

The preliminary financial results for the second quarter ended Aug. 31, 2023, are unaudited estimates, are based on information available to management as of the date of this news release and are subject to potential further material changes upon completion of the company's standard quarter-end closing procedures. In preparing this information, management has made subjective estimates about the appropriateness of certain reported amounts and disclosures. BlackBerry's actual financial results for the three months ended Aug. 31, 2023, have not yet been finalized, and remain subject to the completion of management's final review and the company's other closing procedures. These preliminary estimated results do not represent a comprehensive statement of all financial results for the three months ended Aug. 31, 2023.

Earnings conference call and webcast

A conference call and live webcast will be held on Thursday, Sept. 28, 2023, beginning at 5:30 p.m. ET, which can be accessed through the company's investor website, or by dialling toll-free 1-877-270-2148 and entering elite entry No. 6312676.

A replay of the conference call will be available at approximately 8:30 p.m. ET on Thursday, Sept. 28, 2023, on the company's investor website, or by dialling toll-free 1-855-669-9658 in Canada or toll-free 1-877-344-7529 in the United States and entering replay access code 4522458.

About BlackBerry Ltd.

BlackBerry provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500 million end points, including over 235 million vehicles. Based in Waterloo, Ont., the company leverages artificial intelligence and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy solutions, and is a leader in the areas of end point management, end point security, encryption and embedded systems. BlackBerry's vision is clear -- to secure a connected future you can trust.

We seek Safe Harbor.