Recently, BlackBerry Limited (BB - Free Report) announced that it has clinched a contract from the NATO Communications and Information (“NCI”) Agency for its SecuSUITE for Government to encrypt the conversations of the latter’s technology and cyber leaders. Financial terms of the deal were not disclosed. The NCI Agency assists NATO’s 29 member-nations to communicate in a secure manner and work together in smarter ways.
Notably, the cybersecurity software company’s technology mobilizes secure voice and text communications from unclassified through classified levels. The solution supports Android and iOS smartphones and tablets, and can be installed on-premise in a data center or in the cloud. It protects against threats to local and national security by enabling secure communications on mobile devices. Calls are encrypted from device to the crypto gateway installed in an organization’s network to combat electronic eavesdropping by cybercriminals.
In addition, the company announced the creation of BlackBerry Government Solutions — a new independent subsidiary — which will accelerate its Federal Risk and Authorization Management Program (FedRAMP) initiatives. Headquartered in Washington, DC., BlackBerry Government Solutions has a separate corporate governance structure to comply with U.S. national security requirements. The move allows the company to deepen its reach within the U.S. government sector by ensuring that its next-generation cybersecurity solutions and Spark platform meet FedRAMP and Authority to Operate certifications while providing customers better service.
Furthermore, as a leading player in the enterprise mobility management, BlackBerry is widely recognized for productivity and security innovations. The company delivers one of the most secure mobile enterprise solutions in the market through a broad portfolio of products and services. It offers an end-to-end software and services platform for the Enterprise of Things, which includes computers, vehicles, sensors, equipment and other connected endpoints within the enterprise that communicate with each other to enable smart business processes. With a holistic growth model, focusing both on organic and inorganic investments, BlackBerry aims to expand its market leadership in the enterprise mobility segment.
Strong software sales are aiding BlackBerry while growth in its cybersecurity business is a huge positive. The company has completed the acquisition of Irvine, CA-based cybersecurity firm Cylance for $1.4 billion in cash. Cylance’s highly skilled cybersecurity workforce and market-leading portfolio of endpoint solutions are a strategic fit for Blackberry and will complement its Unified Endpoint Management and QNX businesses. The company further expects that the addition of Cylance will enhance the cybersecurity capabilities of Blackberry Spark, making it an indispensable proposition for Enterprise of Things. For fiscal 2019, BlackBerry expects total software and services revenue growth to be in the range of 8-10% year over year. It expects total software and services billings growth to be in double-digits.
Driven by diligent execution of operational strategies alongside increasing market traction of coveted solution offerings, the stock has returned 24.1% compared with the industry’s rise of 4.6% over the past three months.
BlackBerry currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the industry include Ceragon Networks Ltd. (CRNT - Free Report) , China Unicom (Hong Kong) Limited (CHU - Free Report) and KT Corporation (KT - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ceragon has a long-term earnings growth expectation of 15%.
China Unicom has a long-term earnings growth expectation of 53.1%.
KT has a long-term earnings growth expectation of 14.2%.
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