BlackBerry Reports Record GAAP Gross Margin of 67%, Driven by Growth in Software and Services Revenue

BlackBerry (NASDAQ:BBRY)(TSX:BB), a global software leader in securing, connecting and mobilizing enterprises, today reported financial results for the three months ended November 30, 2016 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated). They have raised their full year non-GAAP EPS outlook.
As quoted in the press release:

Q3 Highlights

• Non-GAAP total revenue of $301 million; GAAP revenue of $289 million

• Non-GAAP Company total software and services revenues of $172 million; GAAP Company total software and services revenues of $160 million

• Record non-GAAP gross margin of 70%; Record GAAP gross margin of 67%

• Adjusted EBITDA of $37 million; positive for twelfth consecutive quarter

• Non-GAAP earnings per share of $0.02; GAAP EPS loss of ($0.22)

• Signed agreement with Ford Motor Company for expanded use of BlackBerry’s QNX and security software

• Entered into a long-term, global software licensing agreement with TCL Communication to design, manufacture, sell and support new BlackBerry-branded mobile devices running BlackBerry’s secure Android software and applications

• Launched the DTEK60, the latest Android device running BlackBerry’s industry-leading security software

• Achieved common criteria NIAP certification for BlackBerry 10.3.3, which is targeted for users in government and highly regulated industries

• Announced plans to launch a Federal Cybersecurity Operations Center to support FedRAMP and other government security certification initiatives; the center will be led by former U.S. Coast Guard CIO, Rear Admiral Bob Day Jr. (retired)

• After the quarter close, launched BlackBerry Secure, a comprehensive and fully integrated enterprise mobility platform that allows enterprises to increase security, productivity and collaboration, accelerate key business processes and reduce total cost of ownership

• After the quarter close, announced plans to launch the BlackBerry Innovation Center in Ottawa; the center will focus on developing secure software for connected cars and autonomous driving

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