BSQUARE(BSQR) - 2023 Q1 - Quarterly Report

Revenue Performance - Total revenue for the first quarter of 2023 was $8,141,000, a decrease of 16.4$9,732,000 in the same period of 2022[69] - Partner Solutions revenue was $7,267,000, down from$9,132,000 year-over-year, while Edge to Cloud revenue increased to $874,000 from$600,000[69] - Total revenue for the three months ended March 31, 2023, was $8,141,000, a decrease of$1,591,000 or 16% compared to $9,732,000 in the same period of 2022[103] - Partner Solutions revenue decreased by$1,865,000 or 20% for the three months ended March 31, 2023, compared to $9,132,000 in the same period of 2022[107] - Edge to Cloud revenue increased by$274,000 or 46% for the three months ended March 31, 2023, compared to $600,000 in the same period of 2022[109] - Revenue recognized at a point-in-time for the three months ended March 31, 2023, was$7.4 million, compared to $9.3 million for the same period in 2022, indicating a decrease of about 20$1,285,000, compared to $1,483,000 in the first quarter of 2022, reflecting a decrease of 13.3$1,285,000, a decrease of $198,000 or 13$1,483,000 in the same period of 2022[103] - The net loss for the first quarter of 2023 was $71,000, significantly improved from a net loss of$888,000 in the same quarter of 2022[69] - Net loss for the three months ended March 31, 2023, was $71,000, a significant improvement compared to a net loss of$888,000 in the same period of 2022[103] Operating Expenses - Operating expenses decreased by $1 million compared to the fourth quarter of 2022 and by$0.7 million compared to the first quarter of 2022, totaling $1,733,000[77] - Operating expenses for the three months ended March 31, 2023, were$1,733,000, a decrease of $671,000 or 28$2,404,000 in the same period of 2022[103] - Selling, general and administrative (SG&A) expenses decreased by 32% to $1.449 million for the three months ended March 31, 2023, down from$2.143 million in the same period in 2022[123] - Research and development (R&D) expenses increased by 9% to $284,000 for the three months ended March 31, 2023, compared to$261,000 in the same period in 2022[125] Cash Flow and Investments - Cash, cash equivalents, restricted cash, and short-term investments totaled $34.0 million as of March 31, 2023, a decrease of$1.7 million since December 31, 2022[81] - Cash used in operating activities for the three months ended March 31, 2023, was $1,470,000, compared to$438,000 in the same period of 2022[103] - Cash from investing activities for the three months ended March 31, 2023, was a net outflow of $26,079,000, compared to$138,000 in the same period of 2022[103] - Cash used in investing activities totaled approximately $26.1 million for the three months ended March 31, 2023, primarily due to investments in treasuries[140] - Financing activities used cash of$0.3 million during the quarter ended March 31, 2023, mainly for the repurchase of common stock[142] Customer and Market Strategy - The company continues to focus on a small number of key customers in its Edge to Cloud segment to enhance its credibility as a technology partner[76] - Bsquare aims to retain and attract customers by offering superior service, technical support, and competitive pricing in response to market trends[74] Stock and Shareholder Information - Bsquare repurchased 303,638 shares for approximately $0.4 million under its Share Repurchase Plan during the first quarter of 2023[80] - The company reported restricted stock units of 25,555 for the three months ended March 31, 2023, compared to 22,898 in the same period of 2022, indicating an increase of approximately 12$138,000, up from $17,000 at the end of March 31, 2022, reflecting a significant increase[161] - Deferred revenue at the end of the period for March 31, 2023, was$186,000, down from $1.2 million at the end of March 31, 2022, showing a decrease of approximately 84$1.1 million at the beginning of the period to $186,000 at the end of the period for March 31, 2023[161] - The company recognized$132,000 in revenue from contract assets during the three months ended March 31, 2023, compared to $16,000 in the same period of 2022[161] - The company invoiced$45,000 in contract assets during the three months ended March 31, 2023, consistent with the previous year[161] - The average customer payment terms range from 30 to 60 days, with no asset impairment charges related to contract assets for the three months ended March 31, 2023, and 2022[160]