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(Reuters) -Canada’s BlackBerry (NYSE:) Ltd on Tuesday reported a fall in cybersecurity revenue for the second quarter, as customers reined in spending due to an uncertain macroeconomic environment, sending its shares down about 3% in extended trading.

The company has also been facing tough competition from Microsoft Corp (NASDAQ:), Citrix Systems (NASDAQ:) and International Business Machines (NYSE:) in the security software segment, with revenue in the unit falling 7.5% to $111 million from a year ago.

The company said in an earnings call that cybersecurity segment revenue in the third quarter is expected to be flat year-on-year.

However, revenue at the company’s Internet of things (IoT) unit, which includes the QNX software for automotive customers, rose about 28% to $51 million as it signed up more customers.

BlackBerry’s QNX software is now embedded in over 215 million vehicles worldwide, helped by surging demand for electric vehicles and connected-car technologies.The company recently added global carmakers such as Ford Motor (NYSE:), General Motors (NYSE:), Hyundai Motor, to its already strong client list of BMW, Honda Motor , Mercedes-Benz and Toyota Motor (NYSE:).

BlackBerry in June said that a deal to sell its patents primarily related to mobile devices, messaging and wireless networking for $600 million to a special purpose vehicle has been delayed.

Total revenue fell 4% to $168 million for the quarter ended Aug. 31, compared with a consensus estimate of $166.7 million, according to IBES data from Refinitiv.

Excluding items, the company posted a loss of 5 cents per share, narrower than analysts’ expectations of loss of 7 cents.

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By Reuters