Financial Data and Key Metrics Changes - Total revenue for Q3 2022 decreased by 500,000, with a gross margin rate for Partner Solutions segment at 13% [11] - Net loss for the quarter was 0.05 per diluted share, compared to a net loss of 0.03 per diluted share in the previous quarter [12] Business Line Data and Key Metrics Changes - Revenue in the Partner Solutions segment decreased by 19% quarter-over-quarter, attributed to fewer large orders [8] - Edge to Cloud segment revenue was 200,000 or 20% [9] Market Data and Key Metrics Changes - OS licensing customers are facing supply chain struggles, impacting product launches and purchasing decisions [9] - Economic conditions, including recession fears and rising interest rates, have led to cautious ordering patterns among customers [9] Company Strategy and Development Direction - The company plans to shift its focus from revenue growth to achieving breakeven business operations in 2023 [23] - Investments in customer account management are aimed at deepening relationships and improving visibility into customer needs [17] - The company is exploring strategic alternatives, including potential mergers and acquisitions, while also considering capital allocation options like stock repurchase or special dividends [26][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledges Q3 as a difficult quarter, with expectations of continued supply chain issues and economic challenges into Q4 and 2023 [16] - The company aims to operate successfully with potentially lower revenue growth than previously planned, emphasizing the importance of cash preservation [25] Other Important Information - The company has a healthy liquidity position with total cash, cash equivalents, and short-term investments totaling $37.1 million as of September 30, 2022 [15] - A cooperation agreement was entered into with a large shareholder to declassify the Board of Directors, aligning with governance best practices [29][30] Q&A Session Summary Question: What is the competitive advantage of the Square One product? - Management noted that OS licensing customers are interested in selling Square One as a partnership to their customers, leveraging existing relationships for trust and stickiness [33][34] Question: Are there plans for increased market awareness and investor relations? - Management expressed a desire to wait until there are more customer wins before increasing marketing efforts, emphasizing a focus on tangible results over future promises [38][39]
BSQUARE(BSQR) - 2022 Q3 - Earnings Call Transcript