Welcome!

Adobe Flex Authors: Matthew Lobas, PR.com Newswire, Shelly Palmer, Kevin Benedict

News Feed Item

Bsquare Reports First Quarter 2014 Results

BELLEVUE, WA -- (Marketwired) -- 05/15/14 -- BSQUARE Corporation (NASDAQ: BSQR), a leading enabler of smart, connected systems, today announced financial results for the first quarter ended March 31, 2014. Total revenue for the quarter was $22.7 million, down 12% compared to the fourth quarter of 2013 and up 9% year-over-year. The net loss for the quarter was $393,000, or $0.03 per share, compared to a net loss of $23,000, or $0.00 per share, in the fourth quarter of 2013 and a loss of $862,000, or $0.08 per share, in the year-ago quarter. Adjusted EBITDAS for the quarter was $210,000 compared to $345,000 in the fourth quarter of 2013 and negative $485,000 in the year-ago quarter. The Company ended the quarter with $23.2 million in cash and investments, up $2.2 million from December 31, 2013.

Details as follows (unaudited, in 000's except per share amounts):


                                     ---------------------------------------
                                                Three Months Ended
                                     ---------------------------------------
                                        3/31/2014   12/31/2013    3/31/2013
                                     ---------------------------------------
Revenue:
  Third-party Software                $    17,695  $    21,142  $    15,491
  Engineering Services                      4,281        4,243        4,359
  Proprietary Software                        755          444        1,020
                                     ---------------------------------------
Total Revenue                              22,731       25,829       20,870
                                     ---------------------------------------
Total Gross Profit                          3,535        4,516        3,347
Gross Margins:
  Third-party Software                         13%          19%          16%
  Engineering Services                         15%           7%           0%
  Proprietary Software                         78%          56%          83%
                                     ---------------------------------------
Total Gross Margin                             16%          17%          16%
                                     ---------------------------------------
Total Operating Expenses                    3,732        4,491        4,294
                                     ---------------------------------------
Net Loss                              $      (393) $       (23) $      (862)
                                     =======================================
  Per Share-Diluted                   $     (0.03) $     (0.00) $     (0.08)
                                     =======================================
Adjusted EBITDAS                      $       210  $       345  $      (485)
                                     =======================================
Cash and Investments EoQ              $    23,226  $    21,055  $    20,297
                                     ---------------------------------------


Notes:
Adjusted EBITDAS = Operating income (loss) before depreciation, amortization and stock compensation expense. Adjusted EBITDAS is a non-GAAP measurement (reconciliation provided after financial statement tables).
Cash and Investments EoQ includes both short and long-term amounts (long-term at 3/31/14 = $250,000).

CEO Commentary

Jerry Chase, President and Chief Executive Officer of Bsquare, commented, "During Q1 we made solid progress on our commitment to return Bsquare to profitability, as evidenced by the $562,000 reduction in operating expenses and the $695,000 positive swing in Adjusted EBITDAS compared to the year-ago quarter. We continue to engage with potential customers and partners around our Internet of Things initiative, and believe IoT is a promising direction for Bsquare. We currently anticipate revenue from this initiative beginning in 2015. Looking forward, we currently expect to be GAAP profitable in Q2 2014 and believe we have the business structure in place to position Bsquare for success in the coming quarters."

Financial Commentary on First Quarter Results (Comparison to Fourth Quarter Results)

  • The decline in third-party software sales, down $3.4 million or 16%, was primarily due to a significant Adobe Flash sale which benefited the fourth quarter;
  • The decline in third-party software margin, down 32% or six percentage points, was driven by the significant Adobe Flash sale which benefited the fourth quarter;
  • The increase in engineering services margin, up 114% or 8 percentage points, was driven primarily by utilization improvement resulting from the cost reductions enacted in the fourth quarter;
  • The decrease in operating expenses, down $759,000 or 17%, was driven primarily by the cost reductions enacted in the fourth quarter; and
  • The increase in cash, up $2.2 million or 10%, from December 31, 2013 was driven primarily by positive working capital effects.

Outlook

The Company currently has the following expectations for Q2 2014:

  • Total revenue is expected to be in the range of $21 million to $23 million; and
  • Cash and investments are projected to be down approximately $1.5 million from March 31, 2014 due to negative working capital effects.

Conference Call

Management will host a conference call today, May 15, 2014, at 5 p.m. Eastern Daylight Time (2 p.m. Pacific Daylight Time). To access the call dial 1-877-941-2068 or +1-480-629-9712 for international callers, and reference "BSQUARE Corporation First Quarter 2014 Earnings Conference Call." A replay will be available for two weeks following the call by dialing 1-877-870-5176, or +1-858-384-5517 for international callers; reference pin number 4680691. A live and replay Webcast of the call will be available at www.bsquare.com in the investor relations section.

About BSQUARE Corporation

Bsquare, a global leader in embedded solutions, applies experience and expertise on leading platforms to create new connections with customers, new business models and to enable new ways of working and communicating. Bsquare serves customers by forging connections among the partners, people, tools and technology needed to create smart connected devices. For more information, visit www.bsquare.com.

This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, among others, statements we make regarding: our financial results in future periods such as anticipated revenue, profitability, and cash and investments; our strategies for customer retention, growth, and market position, including within the Internet of Things market; our sales opportunities or pipeline; and anticipated effects of our 2013 restructuring. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: whether we are able to maintain our favorable relationship with Microsoft; the extent to which we are successful in retaining existing customers and adding new long-term relationships; our ability to execute our sales and marketing strategies around the Internet of Things and our product and service offerings more generally; our management of risks associated with protection of intellectual property and potential infringement claims; risks associated with recent changes in our senior management team; risks associated with our ability to achieve the anticipated benefits of our 2013 restructuring; and such other risk factors as discussed in our most recent Annual Report on Form 10-K and other filings with the SEC. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. Except as may be required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

BSQUARE is a registered trademark of BSQUARE Corporation. All other product and company names herein may be trademarks of their respective owners.


                            BSQUARE CORPORATION
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                    (In thousands, except share amounts)

                                                    March 31,     December
                                                       2014       31, 2013
                                                   -----------  -----------
                                                   (Unaudited)
                      ASSETS
Current assets:
  Cash and cash equivalents                        $    16,845  $    13,510
  Short-term investments                                 6,131        7,295
  Accounts receivable, net of allowance for
   doubtful accounts of $215 at March 31, 2014 and
   $214 at December 31, 2013                            13,130       15,893
  Deferred income taxes                                     12           12
  Prepaid expenses and other current assets              1,808        2,313
                                                   -----------  -----------

    Total current assets                                37,926       39,023
Equipment, furniture and leasehold improvements,
 net                                                     1,496          411
Restricted cash                                            250          250
Deferred income taxes                                      304          304
Intangible assets, net                                     830          863
Goodwill                                                 3,738        3,738
Other non-current assets                                    57           59
                                                   -----------  -----------

    Total assets                                   $    44,601  $    44,648
                                                   ===========  ===========

       LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Third-party software fees payable                $    11,424  $    12,746
  Accounts payable                                         187          634
  Accrued compensation                                   1,722        2,383
  Other accrued expenses                                 1,711        1,249
  Deferred revenue                                       2,707        2,177
                                                   -----------  -----------

    Total current liabilities                           17,751       19,189
Deferred incomes taxes                                     144          144
Deferred rent                                            1,827          644
Shareholders' equity:
  Preferred stock, no par value: 10,000,000 shares
   authorized; no shares issued and outstanding             --           --
  Common stock, no par value: 37,500,000 shares
   authorized; 11,459,676 shares issued and
   outstanding at March 31, 2014 and 11,294,682
   shares issued and outstanding at December 31,
   2013                                                129,946      129,423
  Accumulated other comprehensive loss                    (682)        (759)
  Accumulated deficit                                 (104,385)    (103,993)
                                                   -----------  -----------

    Total shareholders' equity                          24,879       24,671
                                                   -----------  -----------

    Total liabilities and shareholders' equity     $    44,601  $    44,648
                                                   ===========  ===========




                            BSQUARE CORPORATION
   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
            (In thousands, except per share amounts) (Unaudited)


                                                      Three Months Ended
                                                           March 31,
                                                   ------------------------
                                                       2014         2013
                                                   -----------  -----------
Revenue:
  Software                                         $    18,450  $    16,511
  Service                                                4,281        4,359
                                                   -----------  -----------

    Total revenue                                       22,731       20,870
                                                   -----------  -----------

Cost of revenue:
  Software                                              15,555       13,167
  Service                                                3,641        4,356
                                                   -----------  -----------

    Total cost of revenue                               19,196       17,523
                                                   -----------  -----------

      Gross profit                                       3,535        3,347
Operating expenses:
  Selling, general and administrative                    3,300        3,631
  Research and development                                 432          663
                                                   -----------  -----------

    Total operating expenses                             3,732        4,294
                                                   -----------  -----------

Loss from operations                                      (197)        (947)
Other income (expense), net                                (91)          90
                                                   -----------  -----------

Loss before income taxes                                  (288)        (857)
Income tax expense                                        (105)          (5)
                                                   -----------  -----------

Net loss                                           $      (393) $      (862)
                                                   ===========  ===========

Basic loss per share                               $     (0.03) $     (0.08)
                                                   ===========  ===========

Diluted loss per share                             $     (0.03) $     (0.08)
                                                   ===========  ===========

Shares used in calculation of loss per share:
  Basic                                                 11,390       11,107
                                                   ===========  ===========

  Diluted                                               11,390       11,107
                                                   ===========  ===========

Comprehensive loss:
Net loss                                           $      (393) $      (862)
Other comprehensive income (expense):
  Foreign currency translation, net of tax                  77          (96)
  Change in unrealized losses on investments, net
   of tax                                                    -           (2)
                                                   -----------  -----------

        Total other comprehensive income (expense)          77          (98)
                                                   -----------  -----------

Comprehensive loss                                 $      (316) $      (960)
                                                   ===========  ===========




                            BSQUARE CORPORATION
    NON-GAAP INFORMATION AND RECONCILIATION TO COMPARABLE GAAP FINANCIAL
                                  MEASURES
                         (In thousands, unaudited)

                                                Three Months Ended
                                       ------------------------------------
                                        March 31,     December   March 31,
                                           2014       31, 2013      2013
                                       -----------  ----------- -----------

Adjusted EBITDAS:
 Operating income (loss), as reported  $      (197) $        25 $      (947)
 Depreciation and amortization                 163          148         210
 Stock-based compensation expense              244          172         252
                                       -----------  ----------- -----------

Adjusted EBITDAS (1)                   $       210  $       345 $      (485)
                                       ===========  =========== ===========

(1) Adjusted EBITDAS is a non-GAAP financial measure. Generally, a non-GAAP
 financial measure is a numerical measure of a company's performance,
 financial position or cash flow that either excludes or includes amounts
 that are not normally excluded or included in the most directly comparable
 measure calculated and presented in accordance with GAAP. Adjusted EBITDAS
 is defined as operating income (loss) before depreciation expense on fixed
 assets and amortization expense (including impairment) on intangible
 assets, and stock-based compensation expense. Adjusted EBITDAS should not
 be construed as a substitute for net income (loss) or net cash provided by
 (used in) operating activities (all as determined in accordance with GAAP)
 for the purpose of analyzing our operating performance, financial position
 and cash flows, as Adjusted EBITDAS is not defined by GAAP. However, the
 Company regards Adjusted EBITDAS as a complement to net income and other
 GAAP financial performance measures, including an indirect measure of
 operating cash flow.


Bsquare Contact:
Scott Mahan
BSQUARE Corporation
+1 425.519.5900
Email Contact

Investor Contact:
Brett Maas
Hayden IR
+ 1 646.536.7331
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...