BlackBerry is proving to be just like the peasant in "Monty Python and the Holy Grail." It's not dead yet.

The smartphone company did report a bigger loss than analysts were expecting, and BlackBerry's overall sales missed Wall Street's forecasts.

Shortly after the earnings release Tuesday morning, it looked like investors decided to always look on the bright side of life.

The stock surged nearly 10% before the market opened. But BlackBerry gave up those gains and finished the day down 4%.

BlackBerry has historically been a very volatile stock. For every fan that thinks the company is due for a comeback, there seems to be an equal number of skeptics thinking that the stock will fall.

Many of those investors actively bet on a stock price drop by shorting the stock -- borrowing shares and selling them with the hopes of buying them back at a lower price.

Still, the company once again reported positive cash flow. Its cash balance grew from the previous quarter. And software sales more than doubled and now account for 20% of the company's revenue.

That is great news for BlackBerry (BBRY).

BlackBerry phones have failed to make a significant dent in the smartphone market against Apple (AAPL) and the litany of companies making phones that run on Google's (GOOGL) Android operating system.

That's why the company is attempting to reinvent itself as a firm that focuses more on software licensing.

Along those lines, BlackBerry also announced Tuesday that it had struck a patent sharing deal with tech giant Cisco (CSCO). Terms were not disclosed, but Cisco will pay BlackBerry licensing fees.

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BlackBerry purchased a company that lets people run separate smartphone accounts for personal and business use on the same device. And it works for Apple's iOS and Android phones as well as BlackBerry's own operating system.

Reuters even reported earlier this month that BlackBerry was considering the once unthinkable -- making a device that runs Android.

BlackBerry is also touting software it has that helps connect other devices to the Internet -- the so-called Internet of Things. And it has software that runs entertainment units in cars. BlackBerry replaced Microsoft (MSFT) in Ford (F) vehicles late last year.

Still, the transition has been bumpy. Shares surged more than 40% last year as investors applauded moves made by CEO John Chen, who took over BlackBerry in late 2013.

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But the stock has slid more than 15% so far in 2015 while the rest of the tech sector has rallied.

There has been speculation that BlackBerry could be a takeover candidate. Samsung (SSNLF) was mentioned as a possible suitor earlier this year and there was even a fanciful rumor last month about Apple interest.

But BlackBerry merger rumors have come and gone for years.

They resurfaced when Chen joined BlackBerry because of his track record. He had previously turned around struggling software company Sybase and wound up selling it to SAP (SAP).

Still, Chen has stressed repeatedly that he is not interested in selling BlackBerry.