BlackBerry (BBRY) FQ2 2018 earnings were released before opening bell this morning. The company reported adjusted earnings of 5 cents per share on $238 million in GAAP sales or $249 million in non-GAAP sales. The consensus estimates for BlackBerry Ltd (NASDAQ:BBRY) FQ2 2018 earnings were breakeven on $221.18 million in revenue. In last year’s second fiscal quarter, the company broke even on an adjusted basis on $352 million in non-GAAP revenue and $334 million in GAAP revenue.

BlackBerry (BBRY) FQ2 2018 Earnings

On a GAAP basis, BlackBerry (BBRY) FQ2 2018 earnings were actually a loss of 7 cents per share, although that was still a vast improvement from the year-ago quarter’s 71-cent per-share loss. BlackBerry’s gross margin was also a new record high at 76% on a non-GAAP basis and 74% on a GAAP basis. Adjusted EBITDA amounted to $50 million with a margin of 20%. The company had $2.5 billion in cash at the end of the quarter.

The company said its software and services revenue reached a new record during the quarter, hitting $196 million on a non-GAAP basis or $185 million on a GAAP basis. GAAP Enterprise software and services revenue grew to $91 million from $84 million a year ago. BlackBerry Technology Solutions revenue was flat at $38 million, while Licensing, IP and other revenue rose to $56 million from $16 million a year ago. SAF revenues fell to $37 million from $91 million, while Handheld devices sales fell to $16 million from $105 million a year ago.”

“We made significant progress on our key growth initiatives, BlackBerry Executive Chairman and CEO John Chen said in a statement. “Our enterprise billings grew 19 percent year over year driven by our Unified Endpoint Management platform. We secured important design wins in our automotive business, and we expanded our sales channels for our Radar IOT solution. In our licensing businesses, we have a growing pipeline of opportunities with our BlackBerry Secure software and our IP portfolio.”

BlackBerry (BBRY) management expects earnings to be positive on a non-GAAP basis for fiscal 2018, versus the consensus of 4 cents per share in adjusted earnings. They expect non-GAAP sales to come in between $920 million and $950 million, while the consensus currently stands at $916 million.

After BlackBerry (BBRY) FQ2 2018 earnings were released, the company’s stock surged in premarket trading.