US-listed shares of the company, which rose 9.1% to US$10.43 in extended trading, had already risen 8% ahead of the results.

Firms such as BlackBerry are benefiting from an uptick in demand for cyber security and IoT products as more businesses and government organizations shift their operations to the cloud in order to support hybrid working.

As a result, the company was able to offset weakness from sluggish demand for its QNX software from automakers like Volkswagen, BMW and Ford Motor, as the auto industry struggled to maintain production amid a persistent chip shortage crisis.

BlackBerry was dubbed a “meme stock” after a social media driven retail trading frenzy that began earlier this year sent its shares soaring.

BlackBerry’s stock has surged 40% so far this year.

However, the company warned that a drop in automobile production volumes due to Covid-19 closures and chip shortages will continue to adversely affect the company in the next two quarters this fiscal year.

BlackBerry also appointed John Giamatteo, formerly of cyber security firm McAfee, as the president of its cyber security business.

Revenue fell to US$175 million for the quarter ended Aug 31, from US$259 million a year earlier, but beat analysts’ expectation of US$163.5 million, according to IBES data from Refinitiv.

Net loss widened to US$144 million, or 25 cents per share, from US$23 million, or 4 cents per share, a year earlier.

The company said a non-cash accounting adjustment to the fair value of convertible debentures, due to market and trading conditions, accounted for approximately US$0.12 loss per share.

Excluding items, the company posted a loss of 6 cents per share, nudging past analysts’ expectations of loss of 7 cents.