BlackBerry Limited (NASDAQ:BBRY) will team up with Delphi to provide the operating system for the self-driving car technology
SmallCapPower | September 22, 2017: BlackBerry Limited (NASDAQ: BBRY) (TSX: BB) Wednesday announced that it has partnered with Delphi Automotive to provide the operating system for the low-cost self-driving car technology. Delphi Automotive, the auto-part supplier, has developed a turnkey self-driving system called Centralized Sensing Localization and Planning (CSLP) that it plans to begin selling to smaller automakers in 2019.
BlackBerry’s QNX unit, a supplier of infotainment software to major automakers including Ford Motor Co., will collaborate with Delphi on a system that improves software performance and enhances safety in autonomous cars. BlackBerry QNX would provide an operating system that was already certified to high levels of safety for Delphi’s CSLP system, which uses software developed by Delphi’s Ottomatika unit. The operating system would help guard against cyberattacks, malware and system malfunctions.
Partnerships like this one will benefit BlackBerry, which is under great pressure after it shut its phone-making business in September 2016. BlackBerry now focuses on software development, including security and applications. This deal will position BlackBerry as a key supplier of technology for automotive manufacturers. There is a huge shift in the automotive industry, with automakers making a move towards automated vehicle deployment.
Post the announcement, BlackBerry shares jumped 8.6% to reach $12.15 at Wednesday’s close. This partnership came in as a breather for Company investors, as its share price had dropped more than 25% since June 2017. Currently, BlackBerry trades at TTM price to sales value of 5.64x, price to book of 2.36x, and trailing PE of 50.0x.
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in the company mentioned above.
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