These purchase commitments are still ramping up and are back-end loaded.
Total cash, cash equivalents and investments amounted to $3.1 billion.
Looking forward we expect to remain cash flow positive and continue to forecast a non-GAAP income statement profitability at some point during FY16.
That concludes my comments and I’ll send it back to John.
John Chen
Very good. Thank you. All right, operator, can help by polling the Q&A please. Hello? Operator?
Operator
Thank you. If you would like to ask a question, please signal by pressing Star 1 on your telephone keypad. If you’re using a speaker phone, please make sure your mute function is turned off to a lighter signal to reach your equipment. Again, press Star 1 to ask a question.
We’ll go first to Tim Long with BMO Capital Markets.
John Chen
Good morning Tim.
James Yersh
Good morning Tim.
Tim Long, Managing Director, BMO Capital Markets
Good morning guys. Two, if I could. Maybe, John for you, I know you said it, talked a little it takes a little while for the new software to run through the system and convert to revenues. Are you still thinking about this doubling of software revenues next year and maybe give us a sense what we should look at to start to see that number start to inflict more positive. Obviously the beta trials are good but what should we look at for conversion there?
And then maybe James on… it seems like the hardware gross margins were up pretty meaningfully in the quarter. Was there anything else in there and then just related to it when we start getting more Passports and particularly Classics, do you think that will wind up being accretive to that hardware gross margin? Thank you.
John Chen
Okay. So, Tim I’ll take the first one and James will take the second one as you pointed out.
So I think, first of all, yes, I am still on the path of doubling our software revenue the next year. So just to make sure we gone through the numbers correctly, today we talked to you about $250 million. That’s inclusive both licensing, license and technical support. We are expecting in our plan to double that numbers for next year.
I expect to see the monetization to start kicking in, in the second quarter, Q2. It’s roughly about a six to nine quarter thing. So you add it, you start it by a November time frame. I think by June of next year I should see some good traction.
James Yersh
Okay Tim and on the margin question, so I’ll acknowledge that yes, hardware margins did improve quarter-over-quarter. You used the word meaningfully, I think it did go up.
In terms of the pattern going forward, just remember as we go through Q4 and even into Q1, we have two things.
We have the new products which as you said should increase the more, make a bigger contribution to margins, but I also have deferred revenue coming off the balance sheet that’s going to have lower margins attached to it given where we were. As you can see from the ASP in the quarter for example that, that will be kind of an offsetting to that.
So I think your trend is right overtime, but it’s going to be a couple of quarters before we see the full impact of that.
Tim Long
Okay. Thank you.
James Yersh
Yes.
Operator
We’ll take Colin Gillis with BGC Financial Next.
John Chen
Hi Colin.
James Yersh
Good morning Colin.
Colin Gillis, Senior Technology Analyst, BGC Partners
Good morning guys! Can you update us John on the trends for handset discounts as the distribution channel evolves?
John Chen
Yeah normally the distribution channel is roughly about 25 to 30 points. And I don’t see a — well, first of all with our Passport and Classic, I don’t see any different trends, not accelerated.
I think the probably, behind your questions is about whether if you see acceleration of the discounting? I don’t really see the acceleration of discounting.
It seems to be moving pretty good that depending on where you buy it $499 – $599 Passport, $499-$599 and in some cases $699 for the red one.
And so we are planning on some modest discount but that’s no different from the normal the trend that we’re always seeing.
