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Bsquare Announces First Quarter 2023 Financial Results
Revenue stable; Improving operating results
"I am pleased with the quarter-over-quarter improvement in our loss from operations. Our goal is to run the business as efficiently as possible while we evaluate our strategic options and our first quarter results are consistent with that goal," said
- Revenue for the quarter was
$8.1 million , an increase of$0.2 million or 2%. Partner Solutions revenue increased$0.2 million , due to an additional shipping day in the quarter, while Edge to Cloud revenue was flat.
- First quarter gross profit was
$1.3 million which was a slight increase from the prior quarter. Both segments contributed to the improvement.
- Total operating expenses for the quarter were
$1.7 million , which was a decrease of$1.0 million from the prior quarter. Decreased marketing and labor expense drove the change. Additionally, the fourth quarter included$0.2 million of restructuring charges that did not reoccur in the first quarter.
- Loss from operations for the quarter was
$0.4 million compared to the fourth quarter loss from operations of$1.5 million . Net loss for the quarter was$71,000 , or$0.00 per diluted share, which was less than the fourth quarter net loss of$1.2 million , or$0.06 per diluted share.
- The Company continued to execute a short-term, laddered investment strategy designed to take advantage of rising interest rates. Interest income for the quarter totaled
$0.3 million .
- During the first quarter of 2023, the Company repurchased 303,638 shares for approximately
$0.4 million . In total, we have repurchased 482,495 shares for$0.6 million .
- Net loss for the quarter was
$71,000 , or$0.00 per diluted share, which was less than the fourth quarter net loss of$1.2 million , or$0.06 per diluted share.
- Cash, cash equivalents, restricted cash and short-term investments totaled
$34.0 million onMarch 31, 2023 , a decrease of$1.7 million compared toDecember 31, 2022 . The cash decrease was driven by share repurchases, prepaid costs and changes in working capital.
Details as follows (unaudited, in thousands except percentages and per share amounts):
Three Months Ended |
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|
December |
Quarter- |
|
Year-over- |
||||||||||||||||
Revenue: |
||||||||||||||||||||
Partner Solutions |
$ |
7,267 |
$ |
7,077 |
$ |
190 |
$ |
9,132 |
$ |
(1,865) |
||||||||||
Edge to Cloud |
874 |
878 |
(4) |
600 |
274 |
|||||||||||||||
Total revenue |
8,141 |
7,955 |
186 |
9,732 |
(1,591) |
|||||||||||||||
Total gross profit |
$ |
1,285 |
$ |
1,236 |
$ |
49 |
$ |
1,483 |
$ |
(198) |
||||||||||
Gross margin (1): |
||||||||||||||||||||
Partner Solutions |
15 |
% |
15 |
% |
— |
17 |
% |
(2.0) |
||||||||||||
Edge to Cloud |
24 |
% |
22 |
% |
2.0 |
(16) |
% |
40.0 |
||||||||||||
Total gross margin |
16 |
% |
16 |
% |
— |
15 |
% |
1.0 |
||||||||||||
Total operating expenses |
$ |
1,733 |
$ |
2,748 |
$ |
(1,015) |
$ |
2,404 |
$ |
(671) |
||||||||||
Net loss |
(71) |
(1,220) |
1,149 |
(888) |
817 |
|||||||||||||||
Per basic and diluted share |
(0.00) |
(0.06) |
0.06 |
(0.05) |
0.05 |
|||||||||||||||
Cash, cash equivalents and restricted cash |
$ |
7,741 |
$ |
35,635 |
$ |
(27,894) |
$ |
39,441 |
$ |
(31,700) |
Notes:
(1) Quarter-over-quarter change and year-over-year change represent percentage point change.
- Compared to the first quarter of 2022, total revenue decreased by
$1.6 million . Partner Solutions revenue decreased$1.9 million while Edge to Cloud revenue increased$0.3 million .
- Gross profit decreased
$0.2 million driven by the Partner Solutions segment.
- Total operating expenses for the quarter were
$1.7 million , a decrease of$0.7 million compared to the first quarter of 2022.
- Loss from operations for the quarter was
$0.4 million , an improvement of$0.5 million compared to the first quarter of 2022. Net loss for the quarter was$71,000 , or$0.00 per diluted share, compared to a net loss of$0.9 million , or$0.05 per diluted share, in the first quarter of 2022.
Management will host a conference call
A replay will be available for two weeks following the call by dialing 1-844-512-2921, or 1-412-317-6671 for international callers; reference pin number 13737833. A live and replay webcast of the call will be available at www.bsquare.com in the investor relations section.
Bsquare helps companies build connected products that participate intelligently in their own security, deployment, operation, and management, allowing our customers to realize the full potential of a connected world. We have extensive experience designing with Windows, Linux, Android, and other embedded operating systems and now operate IoT networks ranging in size from 50,000 to more than 1 million devices for our customers. Our technology is powering devices that help people be productive, enhance quality of life, and preserve the resources of our planet. Bsquare serves a global customer base from offices in
This release contains "forward-looking statements" within the meaning of the safe-harbor provisions of the
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: our ability to execute our development initiatives and sales and marketing strategies; the extent to which we are successful in gaining new long-term customers and retaining existing ones; whether we are able to maintain our favorable relationship with Microsoft as a systems integrator and distributor; our success in leveraging strategic partnering initiatives with companies such as Microsoft, AWS and Intel; the ongoing impact of COVID-19 on our business and on our customers and vendors; and such other risk factors as discussed in our most recent Annual Report on Form 10-K and other filings with the
Bsquare and Investor Contact: |
|
Bsquare Corporation, Chief Financial Officer |
+1 425.519.5900 |
Bsquare and the Bsquare Logo are trademarks of
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) (Unaudited) |
||||||||
|
|
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
7,520 |
$ |
35,414 |
||||
Restricted cash |
221 |
221 |
||||||
Short-term investments |
26,211 |
7 |
||||||
Accounts receivable, net of allowance for doubtful accounts of |
4,764 |
3,985 |
||||||
Contract assets |
138 |
51 |
||||||
Prepaid expenses and other current assets |
701 |
410 |
||||||
Total current assets |
39,555 |
40,088 |
||||||
Property and equipment, net of accumulated depreciation |
737 |
813 |
||||||
Right-of-use lease assets, net |
1,234 |
1,297 |
||||||
Other non-current assets |
24 |
24 |
||||||
Total assets |
$ |
41,550 |
$ |
42,222 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Current liabilities: |
||||||||
Third-party software fees payable |
$ |
4,273 |
$ |
4,073 |
||||
Accounts payable |
165 |
414 |
||||||
Accrued compensation |
322 |
430 |
||||||
Other accrued expenses |
258 |
232 |
||||||
Deferred revenue |
179 |
252 |
||||||
Operating lease |
367 |
362 |
||||||
Total current liabilities |
5,564 |
5,763 |
||||||
Deferred revenue, long-term |
7 |
9 |
||||||
Operating lease, long-term |
981 |
1,051 |
||||||
Shareholders' equity: |
||||||||
Preferred stock, no par value: 10,000,000 shares authorized; no shares issued and |
— |
— |
||||||
Common stock, no par value: 37,500,000 shares authorized: 20,075,395 and |
172,232 |
172,558 |
||||||
Accumulated other comprehensive loss |
(1,057) |
(1,053) |
||||||
Accumulated deficit |
(136,177) |
(136,106) |
||||||
Total shareholders' equity |
34,998 |
35,399 |
||||||
Total liabilities and shareholders' equity |
$ |
41,550 |
$ |
42,222 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) |
||||||||
Three Months Ended |
||||||||
2023 |
2022 |
|||||||
Revenue: |
||||||||
Partner Solutions |
$ |
7,267 |
$ |
9,132 |
||||
Edge to Cloud |
874 |
600 |
||||||
Total revenue |
8,141 |
9,732 |
||||||
Cost of revenue: |
||||||||
Partner Solutions |
6,187 |
7,552 |
||||||
Edge to Cloud |
669 |
697 |
||||||
Total cost of revenue |
6,856 |
8,249 |
||||||
Gross profit |
1,285 |
1,483 |
||||||
Operating expenses: |
||||||||
Selling, general and administrative |
1,449 |
2,143 |
||||||
Research and development |
284 |
261 |
||||||
Total operating expenses |
1,733 |
2,404 |
||||||
Loss from operations |
(448) |
(921) |
||||||
Other income (expense), net |
377 |
33 |
||||||
Loss before income taxes |
(71) |
(888) |
||||||
Income taxes |
— |
— |
||||||
Net loss |
$ |
(71) |
$ |
(888) |
||||
Basic and diluted loss per share |
$ |
(0.00) |
$ |
(0.05) |
||||
Shares used in per share calculations: |
||||||||
Basic and diluted |
20,197 |
16,665 |
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SOURCE Bsquare