BlackBerry (BBRY 9.79, +0.56) has climbed 6.1% in pre-market after beating quarterly expectations and issuing upbeat guidance for fiscal year 2018. Including today's advance, the stock is up 42.1% for the year, trading below this year's high of $11.74, which was notched in early June.
The Canadian technology company, which has shifted its focus from hardware to software, reported above-consensus second quarter earnings of $0.05 per share on a 29.3% year-over-year decline in revenue to $249 million, which was also better than expected.
In addition to reporting results, BlackBerry announced the signing of its first BlackBerry Secure licensing deal with Yangzhou New Telecom Science and Technology Company. The agreement will allow New Telecom Science and Technology Company to develop devices that will be branded by original equipment manufacturers and will be marketed as BlackBerry Secure devices due the use of BlackBerry's security software. The first product from the partnership is expected to ship in early 2018.
The company noted that roughly 79.0% of its quarterly revenue was recurring. The company had 3,300 enterprise orders during the second quarter.
Enterprise software and services revenue was unchanged year-over-year at $102 million. BlackBerry Technology solutions revenue also remained unchanged from 2016 at $38 million. Licensing, IP, and other revenue grew 250.0% year-over-year to $56 million while Handheld devices revenue fell 85.0% year-over-year to $16 million, reflecting the company's shift in focus.
The North American market was responsible for 55.9% ($133 million) of total revenue, which was consistent with recent trends. Revenue from Europe, Middle East, and Africa ($76 million) made up 31.9% of the total while Asia Pacific revenue ($25 million) and revenue from Latin America ($4 million) accounted for 10.5% and 1.7% of total revenue, respectively.
Looking ahead, BlackBerry expects that revenue for fiscal year 2018 will be between $920 million and $950 million, which is ahead of current market expectations. Non-GAAP software and services revenue is expected to grow between 10.0% and 15.0%.