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
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
In this Women in Technology Power Panel at 15th Cloud Expo, moderated by Anne Plese, Senior Consultant, Cloud Product Marketing at Verizon Enterprise, Esmeralda Swartz, CMO at MetraTech; Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems; Seema Jethani, Director of Product Management at Basho Technologies; Victoria Livschitz, CEO of Qubell Inc.; Anne Hungate, Senior Director of Software Quality at DIRECTV, discussed what path they took to find their spot within the technology industry and how do they see opportunities for other women in their area of expertise.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...