BB Stock In Focus: BlackBerry Exec Sees Growth Where ‘Real Robots Are Deployed,’ Bets On ‘Software-Defined Factories’

BlackBerry sees industrial robotics and automation driving QNX growth beyond automotive.

• QNX President John Wall said AI-powered warehouse robots and automated forklifts are the company’s focus areas. 
• Wall said BlackBerry is using profits from its secure communications business to fund QNX’s growth.
• QNX reported a record $1.2 billion royalty backlog, a 26% year-on-year increase.  

BlackBerry (BB) is looking beyond automotive for growth, with industrial automation and robotics emerging as key opportunities for its QNX software business. QNX President John Wall said the company is focused on where “real robots are deployed,” including warehouses and factories, while software-defined factories could offer manufacturers flexibility and control. 

BlackBerry stock inched 0.5% lower overnight, ahead of Wednesday. The stock, up 7% so far, is heading into its second straight week in green. 

BlackBerry Sees Robotics Growth In Warehouses And Factories 

In an interview with Cheddar, Wall said industrial automation and robotics are among the strongest growth areas for BlackBerry, outside automotive. 

“Automotive is obviously our big market right now. I think where we are seeing the most growth outside of automotive is industrial automation and robotics. When I talk about robotics, I know it's cool to see those humanoid robots dance and doing olympics, but really where we are focused today is where the real robots are being deployed and that’s in warehouses and factories,” said Wall. 

“We are talking maybe a little less sexy robots like skateboards and automated forklifts but that’s where we see the first generation of AI-enabled robotics helping with warehouses. We are starting to see software defined factories that give a factory a lot more flexibility and control, driven by software rather than hardware.”

Safety-Critical Software Powers BlackBerry’s QNX

Wall said QNX develops operating systems, virtualization technology and middleware for systems that require high levels of reliability. 

“Think about Windows on PC or Mac OS on your laptop, we do that type of software but mission critical applications. So for things that contral steering, braking, something like interacts with people in physical world if you think about robotics. So our product is built to never fail. Our product is built with highest safety and security standards.” 

He added that the company’s second division, the secure communications business, remains profitable and BlackBerry is using part of that profit to support QNX, which it views as a major growth opportunity.

On Monday, BlackBerry CEO John Giamatteo highlighted 20% growth and an 87% gross margin in the second quarter. Also, QNX reported a record royalty backlog of more than $1.2 billion, up 26% from roughly $950 million a year earlier. On Tuesday, the company appointed David Chaikof, a lawyer and investment executive, to its board of directors. 

BB Stock: Retail Stance

On Stocktwits, retail sentiment around the stock remained ‘neutral’. 

BB stock has gained 151% year-to-date. 

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