Last but not least I’d like to spend a minute on the BlackBerry Technology Solutions, that’s called BBM. I believe the investment that we made in our technology portfolio, which are devices, BES 12 messaging, BBM software, along with our very extensive carrier relationship, as well as the investment we already made in the security and infrastructure, will serve as probably the most industry most completed, as well as most integrated platform for managing and securing Internet of things platform, or the most completed IOT platform.
We are intending to review the platform roadmap, the IOT platform roadmap and the technology behind it, at our CES in January. Some of you I think already have the invitations from us and please do come and I think you’ll find that pretty exciting. I find it pretty exciting for the future.
You could also see how everything that we do actually integrate together as one and we certainly hope to see you there. And you will also see by the way the BBM road map in addition to the IOT road map.
So I’d now like to turn the call over to James who will provide you the detail and some color on the quarter.
James Yersh, Chief Financial Officer, BlackBerry Limited.
Okay, thanks John. I am going to start with a couple of financial highlights from the quarter. In the quarter we did have positive cash flow of $43 million, adjusting for items not part of normal operations, meaning that we achieved our first financial milestone that John and I started talking about a year ago.
In the quarter we also turned in a non-GAAP net profit of $6 million or $0.01 per share. These results were largely attributable to disciplined management of margins and expenses.
Now turning to the Income Statement.
Revenue for the third quarter was $793 million. Hardware represented 46% of revenue, the same as last quarter. We recognized revenue related to approximately 2 million devices in the third quarter consistent with the previous quarter.
Legacy BB10 and BBOS product inventory is down 93% year-over-year as John mentioned previously. ASP in the quarter was roughly $180 and we expect this to increase on the back of our new product releases.
Service revenue represented 46% of revenue, consistent with last quarter. Service access fees declined 13% compared to last quarter’s SAF revenue and we continue to model a SAF decline of approximately 15% for the next quarter. Software and other revenue represented 8% of revenue.
Both GAAP and non-GAAP gross margins were 51.7%. Hardware gross margins were positive for the second quarter in a row. We continue to model gross margins to be in the high 40% range for the next couple of quarters. Non-GAAP operating expenses were $394 million, down from $433 million last quarter.
GAAP operating expenses were $549 million and included in GAAP OpEx were $5 million of restructuring charges as well as the non-cash charge of $150 million for our convertible debt, which as I have explained in prior quarters, GAAP requires that we record a charge as the value of our debt increases. This is a non-cash charge, has no impact on our face value of the debt, on our liquidity, on our operations or cash flow.
In the quarter, amortization expense was $74 million. The GAAP tax recovery in the quarter was approximately 8%. GAAP net loss, which includes the impact of debt and restructuring was $148 million or $0.28 per share.
Now moving on to our Balance Sheet and Operating Working Capital Performance.
Our cash balance increased by $12 million quarter-over-quarter. Purchase obligations and other commitments amounted to approximately $1.6 billion relatively flat to last quarter.
Purchase orders with contract manufacturers represented approximately $565 million of the total. This is up 64% quarter-over-quarter due to our new product launches that will occur over the next couple of quarters.
