BlackBerry Limited (NYSE:BB) stock fell over 12% in the last week (Source: Finviz) despite delivering a solid second quarter of 2019 financial performance.

Total revenue came in at $214 million with Total software and services revenue was $197 million. Gross margin was 78% and Operating income was $17 million and operating margin was 8%, an increase of 2 percentage points from last year. EPS was $0.04. Total ending cash and investment came in at $2.4 billion.

Second quarter total Company gross margin was 78%, up 2% from a year ago. The non-GAAP gross margin includes software deferred revenue acquired but not recognized of $4 million and excludes stock compensation expense of $1 million and restructuring expense of $1 million. Operating expenses of $150 million were down 3% sequentially. The non-GAAP operating expenses exclude $22 million in amortization of acquired intangibles, $20 million in stock comp expense, $2 million in restructuring charges, a benefit of $2 million for acquisition and integration costs and a benefit of $70 million related to the fair value adjustment on the debentures. Non-GAAP operating income was $17 million and non-GAAP net income was $21 million. Non-GAAP EPS was $0.04 in the second quarter. Our adjusted EBITDA was $33 million this quarter, excluding non-GAAP adjustments previously mentioned. This equates to adjusted EBITDA margin of 15%.

As per segment revenue, total software and services revenue was $197 million, representing 92% of total revenue and up from 79% compared to a year ago. Total SAF revenue was $12 million and total handset device revenue was $5 million. SAF revenue continues to wind down as expected. Handset revenue resulted from the release of balance sheet credits which had a small benefit to EPS.

The enterprise software accounted for 47%, BlackBerry Technology Solutions accounted for 25%, and licensing, IP and other accounted for 28%. Please refer to the supplemental table in the press release for the GAAP and non-GAAP details.

Moving to balance sheet and working capital performance. Total cash, cash equivalents and investments were $2.4 billion, which increased by $17 million from May 31, 2018. The net cash position was $1.7 billion at the end of the quarter.

Moving to the cash flow statement. Free cash flow before considering the impact of restructuring and legal proceedings was positive $37 million. Cash generating operations was $31 million and capital expenditures were $4 million.