John Giamatteo: Thanks, Luke.
Operator: The next question will come from Trip Chowdhry with Global Equities research. Please go ahead.
Trip Chowdhry: Thank you so much, and a very good quarter. I had a couple of questions. First, on Cybersecurity. Traditional machine learning created a new set of challenges in Cybersecurity which Cylance and BlackBerry addressed very well. And now we have — we are having these generative AI, including transformer models, which are coming into the marketplace. I was wondering what kind of a market expansion you see these new technologies pose to BlackBerry, and how does BlackBerry plan to monetize or capitalize on these new threats that are going to come because of these new generative technologies? And then I have a follow-up.
John Giamatteo: Thanks, Trip. Yes, absolutely. We think AI has a big role to play in this industry. It’s actually one of the things that we think is one of our differentiators, is our machine learning, our AI technology that underpins our entire portfolio. Cylance was, I would say, the inventor, the creator of AI/ML cybersecurity. We’re on our seventh generation of machine learning where our efficacy rates are the best that they’ve ever been. So, this is something that we watch closely. We invest close. We incorporate some of the technology not only into our cyber threat intelligence but just how we even in our EDR capabilities. When a notification comes up, how can we help our SOC analysts, our customers, identify these issues much more quickly using AI technology. So, we think it has a very big role to play. We’re going to continue to invest in it and leverage it as a way for us to grow our revenue.
Trip Chowdhry: Perfect. The second question is, like some of the previous people also asked about software in these new generation cars, including EVs, and even as of today, Porsche has not got your software system in place. The software continues to be their weakest link, including these new-generation companies, Lucid, Fisker, you name them, and traditional companies too. So, I was wondering like, what is preventing these established automakers from fully embracing BlackBerry and QNX, and why are they still going in the — on the path of pretty much failure to do it themselves when they can’t even — they don’t even have the software skills? I think they can just buy-versus-make decision should be no brainer. Why are these companies not embracing QNX and have a jumpstart on the software-defined vehicles? Any thoughts, I’ll appreciate it. And thanks again. Good execution this quarter.
John Giamatteo: Thanks, Trip. Trip, I was just wondering if you want to come over and join our sales team, because I love it. Absolutely, we have — we feel the same that there is software-defined vehicles, and bringing that technology in just is good for everybody. It’s good for the OEM, it’s good for their customers, good for us. We’re fortunate, the team has done a great job. We are very entrenched. We’re — with over 235 million vehicles that have QNX today. The design wins with our big customers today, I think positions us really well. I think we’re getting our fair share of the market, and I think there is more to be had. I think there has been some headwinds this year with just everything going on with the economy and strikes and whatever, that’s maybe having them pull back a little bit.
But when the floodgates open and they bring in these next generation EV vehicles and that have more software in them than ever before, I think we couldn’t be better positioned to capture even more of that market share, particularly with things like our most recent release, SDP 8.0. I think that leverages the processor capacity and that next-generation capability. So, some we’re all over, we’re going to continue to be all over, and we’re hopeful to be announcing more and more design wins for you guys in the future.
Trip Chowdhry: Thank you so much. All the best
John Giamatteo: Thanks, Trip.
Operator: The next question will come from Todd Copeland with CIBC. Please go ahead.
Todd Copeland: Yes. Good evening. I just had a couple of cash questions. What’s the expectation for cash or restructuring cost relating to Cyber?
Steve Rai: So we’re working through that, but it’s not going to be astronomical. It’ll be well within our means to handle with the available resources.
Todd Copeland: Okay. And will that — is that expected to be booked in the fourth quarter?
Steve Rai: You’ll have to stay tuned, but we’ll provide an update. We’re working through that.
Todd Copeland: Okay. And at this point, what is the expected timing to get Cyber cash flow positive, with the track you’re getting yourself on?
John Giamatteo: Todd, I think that’s something we’re going to have to come back to you on. We are — made great strides over the course of the last couple of years. We’ve got more plans that we’re working through now, and I think it’s probably best for us to give you a more comprehensive update in next quarter after we’ve done some of that work.
Todd Copeland: I see. Okay. And then, I just wanted to make sure I had this right. It sounded like you said you expected to have the separation complete next fiscal year, so it sounds like it’s going to take a little while to work through the redundancies, the 36 offices, and whatever other optimization plans you want to put in place. Can you just talk us through a rough timeline on that? Thanks a lot.
