BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) released its latest quarterly results before opening bell, and boy were those results a surprise. The company posted adjusted losses of 2 cents per share on sales of $916 million. Analysts had been expecting adjusted losses of 15 cents per share on sales of $951 million.

BlackBerry Ltd Smashes Earnings Estimates

GAAP losses were 39 cents per share In the same quarter a year ago, sales were $1.57 billion, while net losses were $1.84 per share.

Breaking down BlackBerry’s earnings results

BlackBerry said 46% of its revenue was from hardware, while 46% was from services and 8% was from software and other revenue. The company recognized hardware revenue for about 2.1 million smartphones and reported sell-throughs of about 2.4 million. That number includes shipments that were made and recognized before the quarter, which cut BlackBerry’s channel inventory.

The company reported issuing a total of 3.4 million BlackBerry Enterprise Server 10 licenses, which is almost a three-fold increase over the previous quarter. BlackBerry said 25% of the total licenses were traded in on competing Mobile Device Management platforms.

BlackBerry updates other key metrics

BlackBerry had 91 million monthly active BlackBerry Messenger users, an increase from 85 million in the previous quarter. The company also created the BlackBerry Technology Solutions unit during the quarter. That division includes its QNX operating system, Certicom cryptography, Paratek antenna tuning, BlackBerry’s patents and its Internet of Things strategy.

The company also announced that it will acquire Secusmart during the quarter and Movirtu after the end of the quarter.

BlackBerry sees strong cash position

BlackBerry reported a cash and investments balance of $3.1 billion at the end of the fiscal quarter, which ended on Aug. 30. That’s a $11 million increase quarter over quarter. The company reported normalized cash use of $36 million, compared to $255 million in the previous quarter.

Non-GAAP gross margin was 47.5%. Positive non-GAAP hardware gross margin drove that percentage. The company was breakeven on its non-GAAP operating margin.

BlackBerry continues to expect a strong cash position and is still targeting breakeven cash flow by the end of the 2015 fiscal year.