BlackBerry’s third quarter results topped expectations on Wednesday, bolstered by record software and services revenue.
The enterprise mobility and security software provider reported fiscal third quarter non-GAAP earnings of 3 cents a share on revenue of $226 million. On a GAAP basis, BlackBerry reported reported a loss of 52 cents a share.
Wall Street was expecting break even non-GAAP earnings on revenue of $215.4 million.
The Waterloo, Ontario-based company said total software and services revenue was a record $199 million. Enterprise software and services sales increased 11.5 percent to $97 million, helped by the addition of some 3,000 enterprise orders from customers such as NATO and the US Justice Department.
BlackBerry said intellectual property and licensing revenue was $50 million, up 67 percent from a year ago. Revenue from BlackBerry’s Technology Solution group came in flat at $43 million. The company’s gross margin rose to 74.3 percent.
“We had a very strong quarter, and I’m very pleased with our results,” BlackBerry CEO John Chen said. “We made progresses in expanding our channels across our key growth area. We have significant wins in regulated industry. These accomplishments strengthen our foundation for future growth.”
In terms of outlook, BlackBerry expects full year revenue to be in the range of $920 million to $950 million versus the current consensus of $928 million. In its software and services business, the company expects growth between 10 to 15 percent.
“Our strategy is working and our…