Traders are responding favorably today to the news that the bold transformation of BlackBerry Limited (BB) from a fading smartphone hardware company to a cybersecurity software and services company continues to accelerate.

For the quarter that ended in November, software revenues rose to a record $190 million, while handheld revenues fell to only $6 million. Total revenues came in at $226 million, down from $289 million a year ago but better than the $212 million the Street had been expecting. Adjusted earnings per share totaled $0.03, beating the Street's breakeven estimate again.

Guidance for the fiscal year ending in February was also positive. Management expects to deliver sales in the middle to the high end of a $920 million to $950 million range, with software and service revenue up 10% to 15%, positive adjusted EPS and positive cash flow.

This is the second quarter in a row of positive surprises, giving traders confidence that the fallen star's latest turnaround plan is working and that prospects for the future are improving.


BlackBerry shares gapped higher on the open today, clearing $12.00 for the first time in nearly three years. In doing so, BlackBerry stock has also broken out of a sideways channel and resolved a bullish ascending triangle to the upside, all signaling the start of a new uptrend. The previous high, set in early 2015, was near $12.60. The channel measures toward $13.80, while the triangle measures toward $15.60.

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