Canadian enterprise software and IoT provider BlackBerry Ltd BBreported forecast-beating third-quarter results and maintained its guidance for fiscal 2018.

Reacting to the results, the shares were up 6.72 percent to $11.60 at the time of publication in premarket trading.

Revenues, EPS Beat

For the quarter ending Nov. 30, BlackBerry reported non-GAAP earnings of 3 cents per share compared to the break-even results expected by analysts.

GAAP revenue fell about 22 percent year-over-year to $226 million and non-GAAP revenue was at $235 million, The top-line came in above the consensus estimate of $215.42 million.

Strong Segmental Showing

Non-GAAP software and services revenues were at a record $199 million, accounting for about 85 percent of BlackBerry’s total revenue. Gross margin was at a record 77 percent on a non-GAAP basis.

About 75 percent of the software and services revenue, excluding IP licensing and professional services, was recurring, the company said. BlackBerry had about 3,000 enterprise customer orders in the quarter.

Previewing the results, Bank of America Merrill Lynch analyst Daniel Bartus had forecast a miss on software and services growth, although he expected one-time IP licensing and services deals to cushion any weakness outside of it.

Blackberry ended the quarter with a cash balance of $2.5 billion.

The Outlook

“Our momentum continues, with the delivery of a strong third quarter; I am very pleased with our results. Our progress, in both our financial and strategic objectives, is notable,” BlackBerry CEO John Chen said in a statement.

Looking ahead, the company maintained its non-GAAP revenue guidance of $920 million to $950 million for fiscal 2018, with non-GAAP software and services revenue growth in the range of 10-15 percent. The company expects positive non-GAAP earnings per share and free cash flow for the year.

Analysts, on average, estimate earnings of 6 cents per share and revenues of $927.19 million for the year.