The BlackBerry Q1 F2018 earnings report was released before opening bell this morning. The company reported non-GAAP earnings of 2 cents per share on $235 million in GAAP revenue and $244 million in non-GAAP revenue. Analysts had been expecting BlackBerry to break even on $264 million in sales. In the same quarter a year ago, the Canadian firm broke even on $400 million in sales.

BlackBerry Q1 F2018 Earnings

BlackBerry Q1 F2018 Earnings

BlackBerry reported GAAP earnings of $1.23 per share, compared to losses of $1.28 per share a year ago. The non-GAAP gross margin was 67%, while the GAAP gross margin was 64%.

On a non-GAAP basis, total software and services revenue amounted to $169 million, while on a GAAP basis, it was $160 million. About 79% of the software and services revenue during the first quarter was recurring, excluding revenue from patent licensing and professional services. Non-GAAP enterprise software and services revenue ticked downward to $101 million from $106 million in the year-ago quarter. On a GAAP basis, enterprise software and services revenue rose to $92 million from $82 million a year ago. The company had more than 3,000 orders from enterprise customers during the first quarter.

“We secured key design wins in high growth segments of automotive technology, including advanced driver assist, digital instrument cluster and our hypervisor solution,” Executive Chairman and CEO John Chen said in a statement. “Our ecosystem is growing with Qualcomm and NVIDIA adopting BlackBerry technology for their automotive platforms.”

BlackBerry affirms guidance

BlackBerry’s total cash balance rose to $2.6 billion as of the end of the first fiscal quarter. The company received $940 million from the arbitration win against Qualcomm.

BlackBerry affirmed its previously provided outlook for fiscal 2018 with growth at or above the growth in the overall software and services market. The company also expects to be profitable on a non-GAAP basis and projects positive free cash flow for fiscal 2018, excluding the Qualcomm award.

Following the BlackBerry Q1 F2018 earnings report, the company’s stock tumbled in premarket hours, falling by as much as 5.5% to $10.45 at the NASDAQ.