BlackBerry reports Q3 loss, but still better than expected

BlackBerry's latest financials are out. It's a loss, but the company did better than Wall Street was expecting.

The Canadian phone maker on Friday reported a fiscal third-quarter net loss of $89 million on a loss of 17 cents a share (statement).

On a non-GAAP basis, the company made a loss of of 3 cents, on revenue of $557 million.

Wall Street was expecting a loss of 14 cents per share on revenue on $489 million.

Despite the loss, it's a win on both fronts.

The company, which has struggled to maintain face in the smartphone market, has increasingly turned to software and services to stay afloat. Its software and services division powered the quarter, drumming up $162 million -- up 183 percent year-over-year.

Chief executive John Chen said he was "pleased" with the company's turnaround effort.

"BlackBerry has a solid financial foundation, and we are executing well. To sustain our current direction, we are stepping up investments to drive continued software growth and the additional Priv launches," he said. "I anticipate this will result in sequential revenue growth in our software, hardware and messaging businesses in [the fourth quarter]."

No word yet on the sales of its Priv smartphone, which launched earlier this year,

BlackBerry's cash position remained stable at $2.71 billion, down by 18 percent from $3.32 billion in cash at the start of this year.

As for its outlook, the company said it anticipates further positive free cash flow.