BlackBerry Ltd. shares fell in early trading Tuesday after the company said it expects to book a non-cash, goodwill impairment charge at one of its units and it sees lower revenue in the fourth quarter that would miss analyst forecasts.
At 9:45 a.m. ET, Blackberry’s Toronto-listed shares were down more than 10% at $4.88 Canadian dollars ($3.58). The stock has risen 10% since the beginning of the year but is still down over 40% in the last 12 months.
For the period ended Feb. 28, the Canadian digital software and services company said late Monday that it expects to incur a material non-cash and one-time goodwill impairment charge of $440 million for its secure communications platform Spark.
Total revenue is expected by the company to be $151 million, close to the $157.3 million expected from analysts polled by FactSet. Last year in the same quarter, BlackBerry reported revenue of $185 million.
BlackBerry expects its cybersecurity business to see the biggest decline in revenue. Cybersecurity revenue is expected by the company to come in at $88 million, below the year-ago period, when it reported revenue of $122 million, and analyst forecasts of $104.3 million.
BlackBerry blamed the impairment charge primarily on the stock market’s broader decline affecting its market capitalization this past year.