Bsquare (BSQR) Reports Q1 Loss of $0.22

Bsquare (NASDAQ: BSQR) reported Q1 EPS of ($0.22), versus ($0.19) reported last year. Revenue for the quarter came in at $15.1 million, versus $20.68 million reported last year.

First Quarter 2019 Financial Highlights

• Revenue was $15.1 million, down 27% compared to the first quarter of 2018 and down 10% compared to the fourth quarter of 2018.
• Net loss was $2.8 million, or $(0.22) per diluted share, compared to a net loss of $2.4 million, or $(0.19) per diluted share, in the first quarter of 2018, and a net loss of $5.5 million, or $(0.43) per diluted share, in the fourth quarter of 2018.
• Adjusted EBITDAS (1) was negative $2.5 million, compared to negative $2.0 million in the first quarter of 2018 and negative $1.6 million in the fourth quarter of 2018.
• Cash, cash equivalents, restricted cash, and short-term investments at March 31, 2019 totaled $15.3 million, a decrease of approximately $6.2 million from March 31, 2018 and a decrease of $1.7 million from December 31, 2018.

"Q1 was a difficult quarter for us," said newly-appointed Bsquare President and CEO Ralph C. Derrickson. "The DataV product initiative has not met expectations, and the third-party software business has continued to decline. To improve the business, we must lower expenses and rekindle revenue growth."

"In the second half of 2019 we are implementing a series of initiatives as part of a program I call One Bsquare that aligns our sales and marketing, strategic partnerships, and product development efforts. One Bsquare balances our third-party and IoT businesses, meeting our customers where they are, much earlier in their IoT/cloud journey. We intend to go to market with a pragmatic edge-to-cloud message and offering that builds on our legacy embedded OS business with a complimentary suite of software and services that allows our customers to build and operate the next generation of intelligent devices and systems."

"While I expect these initiatives, when fully implemented over the next several quarters, will have a positive impact on revenue growth, we cannot wait and see. We must implement expense reductions now and to that end we have flattened the organization, eliminating positions and redundancy at all levels. Last week we took the difficult step of downsizing our product development team and reducing annualized expense by approximately $4.5 million. Having these changes behind us in the second quarter will help set us up for reduced cash burn in the second half of 2019," concluded Mr. Derrickson.

For earnings history and earnings-related data on Bsquare (BSQR) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Newton Golf Company (NWTG) Reports Q2 Loss of $0.49
• Vivos Therapeutics posts 35% revenue gain but widens net loss