BlackBerry Ltd. (NASDAQ: BBRY) reported fourth-quarter and fiscal 2015 earnings before markets opened Friday. For the quarter, the smartphone maker reported adjusted diluted earnings per share (EPS) of $0.04 on revenues of $660 million. In the same period a year ago, BlackBerry reported per share loss of $0.08 on revenue of $976 million. Fourth-quarter results also compare to consensus estimates for a per-share loss of $0.05 and $786.42 million in revenue.

For the full year, BlackBerry posted revenues of $3.3 billion and a net loss of $0.09 per share, compared with revenues of $6.81 billion and a net loss of $1.35 a year ago. Analysts were looking for a per-share loss of $0.16 on revenues of $3.47 billion.

On a GAAP basis, the company posted fourth-quarter EPS of $0.05, compared with a loss of $0.80 per share in the fourth quarter of 2013. Adjusted net income totaled $20 million and GAAP net income totaled $28 million. Adjustments included charges of $108 million for changes in the value of debentures and restructuring. The company also recognized $115 million in investment income from the sale of its Rockstar business.

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The company recognized hardware revenue on sales of approximately 1.3 million phones to its distribution channels in the quarter, down from 2.0 million in the prior quarter, and sell through to end-users totaled about 1.6 million units, a sequential decline from 1.9 million. The average selling price for the phones rose from $180 in the third quarter to $211 in the fourth quarter.

BlackBerry posted free cash flow of $76 million in the quarter, far better than its cash outflow of $784 million in the year-ago quarter.

Here’s BlackBerry’s outlook statement:

The Company continues to anticipate positive free cash flow.

The Company is expanding its distribution capability, and expects traction from these efforts to manifest some time in fiscal 2016. The company continues to target sustainable non-GAAP profitability some time in fiscal 2016.

This is nearly identical with the company’s outlook at the end of the prior quarter.

The consensus estimates for the first quarter of BlackBerry’s 2016 fiscal year call for a per-share loss of $0.03 on revenues of $813.76 million. For the full year, analysts expect a per-share loss of $0.09 on revenues of $3.28 billion.

The surprise profit will turn investors’ heads, but as hardware sales continue to slide and software revenues remain modest, the conclusion we might draw is that BlackBerry got to this point by cutting costs.

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The company said that its purchase orders on contract manufacturers totaled about $394 million at the end of the fourth quarter, down from $565 million sequentially. That likely indicates that hardware sales will continue to fade.

A bright spot is adjusted gross margins of 48.8%, the result of a higher average selling price and lower costs.

Shares traded down by about 0.4% in Friday’s premarket session, at $9.26 in a 52-week range of $7.01 to $12.63. The consensus analyst price target was $9.15 before the results were announced. The stock closed at $9.30 on Thursday, down about 1.8% from its closing price the day before BlackBerry reported its third-quarter earnings last December.

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