By Dhirendra Tripathi

Investing.com – BlackBerry stock (NYSE:) slumped 4% Wednesday after the company’s projection of fourth-quarter revenue from its cybersecurity solutions disappointed traders.

According to the company, fourth quarter revenue from this vertical will be $135million at the top end. This is 11% more than Q4 Fiscal 2021. Refinitiv data suggests that the analyst who forecasted this figure was $143million. The company projects cybersecurity will generate $125 million in fourth quarter revenue. This will be just $3 million less year-over-year and lower sequentially.

The somber outlook comes as shortage of chips have crippled production at automakers, some of whom are Blackberry’s clients. Growth in the cybersecurity vertical, which accounts for more than half of the company’s revenue, has been sluggish, impacting the overall business. Revenue from cybersecurity for the November 30-ended quarter was $128million. It was also lower sequentially than year-on–year.

Blackberry’s revenue in their third quarter fell to $184 million, around 16% lower than the year-prior quarter, but came in ahead of estimates. It was able to return to net profit at $74 million after lower operating costs, as opposed with $130 million loss in the previous quarter.

John Chen, Chief Executive Officer, expects that automotive supply chain problems will ease in this quarter. This should help increase demand for QNX’s car software. It is used by Ford, BMW, and Volkswagen.