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Bsquare Announces Second Quarter 2023 Financial Results
Stable operating results; Exploring strategic options
On a year-to-date basis, loss from operations was
"
Second Quarter 2023 Results Compared to First Quarter 2023
- Revenue for the quarter was
$6.5 million , a decrease of$1.6 million or 20%. Partner Solutions revenue decreased by$1.5 million , while Edge to Cloud revenue decreased by$0.1 million . - Second quarter gross profit was
$1.4 million , a slight increase from the prior quarter. The improvement was primarily due to the favorable impact of changes to Microsoft's incentive earnings program. - Total operating expenses for the quarter were
$2.0 million , an increase of$0.3 million from the prior quarter. The increase was due to a decrease in Microsoft co-op marketing funds (which offset marketing expense) and an increase in professional fees. - Loss from operations for the quarter was
$0.7 million compared to the first quarter loss from operations of$0.4 million . - The Company continues to execute a short-term, laddered investment strategy designed to employ available cash while maintaining liquidity as strategic options are explored. Interest income for the quarter totaled
$0.4 million . - During the second quarter of 2023, the Company repurchased 248,509 shares for approximately
$0.3 million . In total, we have repurchased 731,004 shares for$0.9 million . - Net loss for the quarter was
$0.3 million , or$0.01 per diluted share, compared to the first quarter net loss of$0.1 million , or$0.00 per diluted share. - Cash, cash equivalents, restricted cash and short-term investments totaled
$33.4 million onJune 30, 2023 , a decrease of$2.3 million compared toDecember 31, 2022 . The liquidity decrease was driven by changes in working capital and share repurchases.
Details as follows (unaudited, in thousands except percentages and per share amounts):
Three Months Ended |
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|
Quarter- |
|
Year-over- |
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Revenue: |
||||||||||||||||||||
Partner Solutions |
$ |
5,751 |
$ |
7,267 |
$ |
(1,516) |
$ |
9,353 |
$ |
(3,602) |
||||||||||
Edge to Cloud |
774 |
874 |
(100) |
1,041 |
(267) |
|||||||||||||||
Total revenue |
6,525 |
8,141 |
(1,616) |
10,394 |
(3,869) |
|||||||||||||||
Total gross profit |
$ |
1,372 |
$ |
1,285 |
$ |
87 |
$ |
1,599 |
$ |
(227) |
||||||||||
Gross margin (1): |
||||||||||||||||||||
Partner Solutions |
22 |
% |
15 |
% |
7.0 |
13 |
% |
9.0 |
||||||||||||
Edge to Cloud |
17 |
% |
24 |
% |
(7.0) |
34 |
% |
(17.0) |
||||||||||||
Total gross margin |
21 |
% |
16 |
% |
5.0 |
15 |
% |
6.0 |
||||||||||||
Total operating expenses |
$ |
2,024 |
$ |
1,733 |
$ |
291 |
$ |
2,278 |
$ |
(254) |
||||||||||
Net loss |
(260) |
(71) |
(189) |
(625) |
365 |
|||||||||||||||
Per basic and diluted share |
(0.01) |
0.00 |
(0.01) |
(0.03) |
0.02 |
|||||||||||||||
Cash, cash equivalents and restricted cash |
$ |
13,534 |
$ |
7,741 |
$ |
5,793 |
$ |
37,846 |
$ |
(24,312) |
Notes: |
|
(1) |
Quarter-over-quarter change and year-over-year change represent percentage point change. |
Second Quarter 2023 Results Compared to Second Quarter 2022
- Compared to the second quarter of 2022, total revenue decreased by
$3.9 million . Partner Solutions revenue decreased$3.6 million while Edge to Cloud revenue decreased$0.3 million . - Gross profit decreased
$0.2 million driven by the Partner Solutions segment. - Total operating expenses for the quarter were
$2.0 million , a decrease of$0.3 million compared to the second quarter of 2022. - Loss from operations for the quarter was
$0.7 million , which was flat compared to the second quarter of 2022. Net loss for the quarter was$0.3 million , or$0.01 per diluted share, compared to a net loss of$0.6 million , or$0.03 per diluted share, in the second quarter of 2022.
Conference Call
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 10180813. A live and replay webcast of the call will be available at www.bsquare.com in the investor relations section.
About Bsquare Corporation
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
About
Cautionary Note Regarding Forward-Looking Statements
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
BSQUARE CORPORATION |
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|
|
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ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
13,313 |
$ |
35,414 |
||||
Restricted cash |
221 |
221 |
||||||
Short-term investments |
19,831 |
7 |
||||||
Accounts receivable, net of allowance for doubtful accounts of |
4,338 |
3,985 |
||||||
Contract assets |
262 |
— |
||||||
Prepaid expenses and other current assets |
544 |
410 |
||||||
Total current assets |
38,509 |
40,037 |
||||||
Property and equipment, net of accumulated depreciation |
659 |
813 |
||||||
Right-of-use lease assets, net |
1,170 |
1,297 |
||||||
Other non-current assets |
24 |
24 |
||||||
Total assets |
$ |
40,362 |
$ |
42,171 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Current liabilities: |
||||||||
Third-party software fees payable |
$ |
3,616 |
$ |
4,073 |
||||
Accounts payable |
247 |
414 |
||||||
Accrued compensation |
406 |
430 |
||||||
Other accrued expenses |
183 |
232 |
||||||
Deferred revenue |
126 |
201 |
||||||
Operating lease |
373 |
362 |
||||||
Total current liabilities |
4,951 |
5,712 |
||||||
Deferred revenue, long-term |
— |
9 |
||||||
Operating lease, long-term |
908 |
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: 19,843,845 and |
172,002 |
172,558 |
||||||
Accumulated other comprehensive loss |
(1,062) |
(1,053) |
||||||
Accumulated deficit |
(136,437) |
(136,106) |
||||||
Total shareholders' equity |
34,503 |
35,399 |
||||||
Total liabilities and shareholders' equity |
$ |
40,362 |
$ |
42,171 |
BSQUARE CORPORATION |
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Revenue: |
||||||||||||||||
Partner Solutions |
$ |
5,751 |
$ |
9,353 |
$ |
13,018 |
$ |
18,485 |
||||||||
Edge to Cloud |
774 |
1,041 |
1,648 |
1,641 |
||||||||||||
Total revenue |
6,525 |
10,394 |
14,666 |
20,126 |
||||||||||||
Cost of revenue: |
||||||||||||||||
Partner Solutions |
4,507 |
8,106 |
10,694 |
15,658 |
||||||||||||
Edge to Cloud |
646 |
689 |
1,315 |
1,386 |
||||||||||||
Total cost of revenue |
5,153 |
8,795 |
12,009 |
17,044 |
||||||||||||
Gross profit |
1,372 |
1,599 |
2,657 |
3,082 |
||||||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative |
1,741 |
2,022 |
3,190 |
4,165 |
||||||||||||
Research and development |
283 |
256 |
567 |
517 |
||||||||||||
Total operating expenses |
2,024 |
2,278 |
3,757 |
4,682 |
||||||||||||
Loss from operations |
(652) |
(679) |
(1,100) |
(1,600) |
||||||||||||
Other income (expense), net |
392 |
54 |
769 |
87 |
||||||||||||
Loss before income taxes |
(260) |
(625) |
(331) |
(1,513) |
||||||||||||
Income taxes |
— |
— |
— |
— |
||||||||||||
Net loss |
$ |
(260) |
$ |
(625) |
$ |
(331) |
$ |
(1,513) |
||||||||
Basic and diluted loss per share |
$ |
(0.01) |
$ |
(0.03) |
$ |
(0.02) |
$ |
(0.07) |
||||||||
Shares used in per share calculations: |
||||||||||||||||
Basic and diluted |
19,946 |
20,406 |
20,070 |
20,426 |
||||||||||||
Net loss |
$ |
(260) |
$ |
(625) |
$ |
(331) |
$ |
(1,513) |
||||||||
Other comprehensive loss |
||||||||||||||||
Foreign currency translation, net of tax |
(5) |
(51) |
(10) |
(48) |
||||||||||||
Total other comprehensive (loss) income |
(5) |
(51) |
(10) |
(48) |
||||||||||||
Comprehensive loss |
$ |
(265) |
$ |
(676) |
$ |
(341) |
$ |
(1,561) |
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SOURCE Bsquare