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RBC Capital Markets on Tuesday cut its sales outlook for BlackBerry Ltd.’s Classic and Passport by half, though it said software sales still leave reason to be bullish on the company.

Analysts at RBC said they now expect near-term sales for the two smartphones to fall to 700,000, from a previous estimate of 1.4 million. They now expect only 3.2 million units will be sold in fiscal 2016, compared with their earlier call of 6.5 million units (BlackBerry is currently in its first quarter of fiscal 2016).

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But RBC said BlackBerry software sales will continue to make up for hardware’s weakness.

“We’re slashing our estimates on BlackBerry hardware units, but it’s not the focus anyway,” RBC said in a research note to clients. “We’re seeing encouraging signs with regulated verticals for BlackBerry’s software.”

BlackBerry has been pushing hard in recent months to win back clients in industries it has traditionally been strong in, including government, financials and health care. The company is known for its top-notch software security, something sought after by enterprise clients.