BlackBerry Ltd. (NYSE: BB) shares surged on Wednesday after the Canadian software company reported record software revenue and better-than-expected third-quarter earnings.
The Waterloo, Ontario-based company said third-quarter revenue fell 25 percent to $226 million, but it still beat analysts’ estimates of $215.4 million, according to Thomson Reuters I/B/E/S. However, the company posted record enterprise software and services sales of $97 million in the third quarter.
Excluded certain items, the company earned 3 cents a share in the quarter ended Nov. 30, beating analysts’ estimates for break even.
"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," said John Chen, Executive Chairman and CEO, BlackBerry. "We achieved records in software and services revenue and total company gross margin; breaking the records we set last quarter. We expanded our position in key verticals and geographies, with many new partners and highly competitive customer wins."
BlackBerry shares jumped 9.38 percent to $11.89 in the early trading on Wednesday. The stock was up over 70 percent this year.
"Our strategy is working and our execution is yielding results," said Chen. "We are a market leader in secure endpoint management and embedded software. The validation we have received, from partners, customers and industry experts around the world, speaks for itself."