Revenue increases quarter over
quarter; Company initiates device maker marketing
SEATTLE, May 12, 2022
/PRNewswire/ -- Bsquare Corporation (NASDAQ: BSQR) today announced
financial results for the first quarter of 2022. Total revenue was
$9.7 million, an improvement of
$0.7 million or 7% compared to the
fourth quarter of 2021. Gross profit increased $0.2 million quarter-over-quarter. Loss from
operations was $0.9 million, in-line
with the fourth quarter operating loss. Cash decreased $0.6 million from December
31, 2021.
"We're pleased with the financial results of the quarter. We saw
an improvement in revenue and continued to carefully manage our
expenses, and cash," said Ralph C.
Derrickson, President and CEO of Bsquare.
Adds Derrickson: "We initiated marketing efforts in the first
quarter that seek to position Bsquare as an emerging thought-leader
and solutions expert for connected device makers. Our plans assume
that these investments will begin to bear fruit in the second half
of 2022."
First Quarter 2022 Results Compared to
Fourth Quarter 2021
- Revenue for the quarter was $9.7
million, an increase of $0.7
million or 7%. Partner Solutions revenue increased
$1.0 million while Edge to Cloud
revenue decreased $0.3 million.
- Partner Solutions gross profit increased $0.4 million driven by both the increase in
revenue and a large, high-margin sale. Edge to Cloud gross profit
decreased, primarily driven by lower revenue, partially offset by a
slight improvement in cost of revenue.
- Total operating expenses for the quarter were $2.4 million, an increase of $0.2 million, driven by an increase in marketing
expense.
- Loss from operations for the quarter was $0.9 million, in-line with the fourth quarter of
2021. Net loss for the quarter was $0.9
million, or $0.05 per diluted
share, compared to a net loss of $0.8
million, or $0.04 per diluted
share, in the fourth quarter of 2021.
- Cash, cash equivalents and restricted cash totaled $39.4 million on March 31,
2022, a decrease of $0.6
million compared to December 31,
2021. Cash use was driven by operations.
Details as follows (unaudited, in thousands except percentages
and per share amounts):
|
|
Three Months
Ended
|
|
|
|
March 31,
2022
|
|
|
December
31, 2021
|
|
|
Quarter-
over-
Quarter
Change
|
|
|
March 31,
2021
|
|
|
Year-over-
Year
Change
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partner Solutions
|
|
$
|
9,132
|
|
|
$
|
8,123
|
|
|
$
|
1,009
|
|
|
$
|
8,795
|
|
|
$
|
337
|
|
Edge to Cloud
|
|
|
600
|
|
|
|
955
|
|
|
|
(355)
|
|
|
|
1,177
|
|
|
|
(577)
|
|
Total
revenue
|
|
|
9,732
|
|
|
|
9,078
|
|
|
|
654
|
|
|
|
9,972
|
|
|
|
(240)
|
|
Total gross
profit
|
|
$
|
1,484
|
|
|
$
|
1,302
|
|
|
$
|
182
|
|
|
$
|
1,593
|
|
|
$
|
(109)
|
|
Gross margin
(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partner Solutions
|
|
|
17
|
%
|
|
|
14
|
%
|
|
|
3.0
|
|
|
|
15
|
%
|
|
|
2.0
|
|
Edge to Cloud
|
|
|
-16
|
%
|
|
|
14
|
%
|
|
|
(30.0)
|
|
|
|
22
|
%
|
|
|
(38.0)
|
|
Total gross
margin
|
|
|
15
|
%
|
|
|
14
|
%
|
|
|
1.0
|
|
|
|
16
|
%
|
|
|
(1.0)
|
|
Total operating
expenses
|
|
$
|
2,404
|
|
|
$
|
2,157
|
|
|
$
|
247
|
|
|
$
|
2,444
|
|
|
$
|
(40)
|
|
Net loss
|
|
|
(888)
|
|
|
|
(778)
|
|
|
|
(110)
|
|
|
|
(860)
|
|
|
|
(28)
|
|
Per basic and diluted
share
|
|
|
(0.05)
|
|
|
|
(0.04)
|
|
|
|
(0.01)
|
|
|
|
(0.07)
|
|
|
|
0.02
|
|
Cash, cash equivalents
and restricted cash
|
|
$
|
39,441
|
|
|
$
|
40,086
|
|
|
$
|
(645)
|
|
|
$
|
10,365
|
|
|
$
|
29,076
|
|
Notes:
(1) Quarter-over-quarter
change and year-over-year change represent percentage point
change.
First Quarter 2022 Results Compared to
First Quarter 2021
- Partner Solutions revenue increased $0.3
million or 4% for the comparative period.
- Edge to Cloud revenue decreased compared to the first quarter
of 2021, driven by continued purchasing delays from one of our
large customers.
- Total operating expenses for the quarter were $2.4 million, flat compared to the first quarter
of 2021.
- Loss from operations for the quarter was $0.9 million, in-line with the first quarter of
2021. Net loss for the quarter was $0.9
million, or $0.05 per diluted
share, compared to a net loss of $0.9
million, or $0.07 per diluted
share, in the first quarter of 2021.
Conference Call
Management will host a conference call today, May 12, 2022 at 5 p.m.
Eastern Time (2 p.m. Pacific
Time). To access the call dial 1-888-256-1007 or
1-856-344-9299 for international callers, and reference "Bsquare
Corporation First Quarter 2022 Earnings 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 8747761. 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 Seattle, WA, and the United Kingdom. For more information, visit
www.bsquare.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking statements" within the
meaning of the safe-harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as: "expect,"
"continue," "believe," "plan," "strategy," "future," "may,"
"should," "will," and similar references to future periods.
Examples of forward-looking statements include, among others,
express or implied statements we make regarding the stability of
our business, expected improvements to our IoT and software
offerings, expected operating results in future periods, such as
anticipated revenue, gross margins, profitability, cash and
investments, and regarding strategies for customer retention,
growth, new product and service developments, and market position.
Forward-looking statements are neither historical facts nor
assurances about future performance. Instead, they are based on
current beliefs, expectations and assumptions about the future of
our business and other future conditions. 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: 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 Securities and Exchange Commission. 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 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 and Investor Contact:
Christopher Wheaton
Bsquare Corporation, Chief Financial and Operating Officer
+1 425.519.5900
investorrelations@bsquare.com
Bsquare and the Bsquare Logo are trademarks of Bsquare
Corporation in the U.S. and other countries. Other names and brands
herein may be trademarks of others.
BSQUARE
CORPORATION CONDENSED CONSOLIDATED BALANCE
SHEETS (In thousands, except share
amounts) (Unaudited)
|
|
|
|
March 31,
2022
|
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
39,221
|
|
|
$
|
39,529
|
|
Restricted cash
|
|
|
220
|
|
|
|
557
|
|
Accounts receivable, net of allowance for doubtful accounts
of $50 at March 31,
2022 and December 31, 2021
|
|
|
4,790
|
|
|
|
4,914
|
|
Contract assets
|
|
|
17
|
|
|
|
46
|
|
Prepaid expenses and other current assets
|
|
|
818
|
|
|
|
364
|
|
Total current assets
|
|
|
45,066
|
|
|
|
45,410
|
|
Property and equipment,
net of accumulated depreciation
|
|
|
776
|
|
|
|
726
|
|
Right-of-use lease
assets, net
|
|
|
1,522
|
|
|
|
1,598
|
|
Other non-current
assets
|
|
|
24
|
|
|
|
24
|
|
Total assets
|
|
$
|
47,388
|
|
|
$
|
47,758
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Third-party software fees payable
|
|
$
|
4,976
|
|
|
$
|
4,628
|
|
Accounts payable
|
|
|
608
|
|
|
|
426
|
|
Accrued compensation
|
|
|
574
|
|
|
|
502
|
|
Other accrued expenses
|
|
|
179
|
|
|
|
219
|
|
Deferred revenue
|
|
|
1,017
|
|
|
|
944
|
|
Operating lease
|
|
|
358
|
|
|
|
357
|
|
Total current
liabilities
|
|
|
7,712
|
|
|
|
7,076
|
|
Deferred revenue,
long-term
|
|
|
147
|
|
|
|
194
|
|
Operating lease,
long-term
|
|
|
1,286
|
|
|
|
1,363
|
|
|
|
|
|
|
|
|
|
|
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:
20,445,880 and
20,374,406 shares issued and outstanding at
March 31, 2022 and December 31,
2021, respectively
|
|
|
172,400
|
|
|
|
172,397
|
|
Accumulated other comprehensive loss
|
|
|
(1,021)
|
|
|
|
(1,024)
|
|
Accumulated deficit
|
|
|
(133,136)
|
|
|
|
(132,248)
|
|
Total shareholders'
equity
|
|
|
38,243
|
|
|
|
39,125
|
|
Total liabilities and
shareholders' equity
|
|
$
|
47,388
|
|
|
$
|
47,758
|
|
BSQUARE
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share
amounts) (Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2022
|
|
|
2021
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Partner Solutions
|
|
$
|
9,132
|
|
|
$
|
8,795
|
|
Edge to Cloud
|
|
|
600
|
|
|
|
1,177
|
|
Total revenue
|
|
|
9,732
|
|
|
|
9,972
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Partner Solutions
|
|
|
7,552
|
|
|
|
7,459
|
|
Edge to Cloud
|
|
|
696
|
|
|
|
920
|
|
Total cost of
revenue
|
|
|
8,248
|
|
|
|
8,379
|
|
Gross profit
|
|
|
1,484
|
|
|
|
1,593
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
2,143
|
|
|
|
2,276
|
|
Research and development
|
|
|
261
|
|
|
|
168
|
|
Total operating
expenses
|
|
|
2,404
|
|
|
|
2,444
|
|
Loss from
operations
|
|
|
(920)
|
|
|
|
(851)
|
|
Other income (loss),
net
|
|
|
32
|
|
|
|
(9)
|
|
Loss before income
taxes
|
|
|
(888)
|
|
|
|
(860)
|
|
Income taxes
|
|
|
—
|
|
|
|
—
|
|
Net loss
|
|
$
|
(888)
|
|
|
$
|
(860)
|
|
Basic and diluted loss
per share
|
|
$
|
(0.05)
|
|
|
$
|
(0.07)
|
|
Shares used in per
share calculations:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
16,665
|
|
|
|
13,186
|
|
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SOURCE Bsquare