Click here to close now.

Welcome!

AJAX & REA Authors: Liz McMillan, Elizabeth White, Pat Romanski, Hovhannes Avoyan, XebiaLabs Blog

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.

@CloudExpo Stories
SYS-CON Events announced today that Secure Infrastructure & Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company...
SYS-CON Events announced today that CenturyLink, Inc., a leader in the network services market, has been named “Platinum Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. CenturyLink is the third largest telecommunications company in the United States and is recognized as a leader in the network services market by technology industry analyst firms. The company is a global leader in cloud infrastructure and ...
Docker is becoming very popular--we are seeing every major private and public cloud vendor racing to adopt it. It promises portability and interoperability, and is quickly becoming the currency of the Cloud. In his session at DevOps Summit, Bart Copeland, CEO of ActiveState, discussed why Docker is so important to the future of the cloud, but will also take a step back and show that Docker is actually only one piece of the puzzle. Copeland will outline the bigger picture of where Docker fits a...
SYS-CON Events announced today the DevOps Foundation Certification Course, being held June ?, 2015, in conjunction with DevOps Summit and 16th Cloud Expo at the Javits Center in New York City, NY. This sixteen (16) hour course provides an introduction to DevOps – the cultural and professional movement that stresses communication, collaboration, integration and automation in order to improve the flow of work between software developers and IT operations professionals. Improved workflows will res...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
A new definition of Big Data & the practical applications of the defined components & associated technical architecture models This presentation introduces a new definition of Big Data, along with the practical applications of the defined components and associated technical architecture models. In his session at Big Data Expo, Tony Shan will start with looking into the concept of Big Data and tracing back the first definition by Doug Laney, and then he will dive deep into the description of 3V...
As cloud gives an opportunity to businesses to buy services externally – how is cloud impacting your customers? In his General Session at 15th Cloud Expo, Fabio Gori, Director of Worldwide Cloud Marketing at Cisco, provided answers to big questions: Do you see hybrid cloud as where the world is going? What benefits does it bring? And how does Cisco connect all of these clouds? He also discussed Intercloud and Cisco’s investment on it.
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
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 immed...
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
There are 182 billion emails sent every day, generating a lot of data about how recipients and ISPs respond. Many marketers take a more-is-better approach to stats, preferring to have the ability to slice and dice their email lists based numerous arbitrary stats. However, fundamentally what really matters is whether or not sending an email to a particular recipient will generate value. Data Scientists can design high-level insights such as engagement prediction models and content clusters that a...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
Database apps on mobile devices shouldn't stop working when there's limited or no network connectivity. In his session at 16th Cloud Expo, Bradley Holt, a Developer Advocate for IBM Cloudant, will discuss how to bring data stored in a cloud database to the edge of the network (and back again), whenever an Internet connection is available. He will demonstrate techniques for replicating cloud databases with mobile devices in order to build offline-enabled mobile apps that can provide a better,...
This talk focuses on the application of DevOps fundamentals to include network infrastructure. It draws from real deployment case studies on the extension of today's paradigms to address the challenges of the network infrastructures' ability to seamlessly and cohesively integrate into agile workflows. In this session at DevOps Summit, Arista Networks will focus on configuration management using automation with a nod to future work necessary to include telemetry and ephemeral state information....
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization's assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In...