John Chen, chief executive officer of BlackBerry Ltd., holds the BlackBerry Priv smartphone.
BlackBerry reported quarterly profit above Wall Street's estimates on Friday, as lower expenses helped offset a drop in its enterprise software and services revenue.
U.S.-listed shares of the company were up 2.7 percent premarket.
BlackBerry, which dominated the smartphone market nearly a decade ago before losing out to Apple's iPhones and Android devices, has been trying to win investor confidence and make money by selling software to manage mobile devices to corporations and government agencies.
The company's expenses fell in the quarter. Selling and marketing costs dropped about 6 percent to $106 million, while research and development costs fell 15 percent.
Enterprise software and services revenue, the company's biggest, fell 3 percent to $88 million in the second quarter ended Aug. 31.
On a per share basis, the company reported a loss of 4 cents, compared with a loss of 8 cents per share in the year-ago quarter.
Excluding items, the company earned 4 cents per share, beating analysts' average estimate of 1 cent, according to Thomson Reuters I/B/E/S.
Total revenue fell 13 percent to $210 million.
