BSQUARE Corp. (NASDAQ:BSQR) Q4 2018 Earnings Conference Call Transcript

Feb 25, 2019 • 05:00 pm ET


BSQUARE Corp. (NASDAQ:BSQR) Q4 2018 Earnings Conference Call Transcript


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Good day, and welcome to the BSQUARE Corporation Fourth Quarter and Full 2018 Financial Results Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Leslie Phillips, Investor Relations for BSQUARE. Please go ahead.

Leslie Phillips

Thank you and good afternoon everyone. Before we begin, we'd like to remind you that this call is being webcast and that a recording of the call and the text of our prepared remarks will be available on BSQUARE's website. During this call, we will be making forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially.

Please refer to the cautionary text regarding forward-looking statements contained in BSQUARE's earnings release issued today and in the posted version of these prepared remarks on our website at under Investors, both of which apply to the content of this call. All per share amounts discussed today are fully diluted numbers where applicable.

Now, I'd like to turn the call over to Andrew Harries, BSQUARE Executive Chairman. Andrew?

Andrew Harries

Thanks, Leslie and good afternoon everyone. Last week we announced the appointment of a permanent CEO, Ralph Derrickson, who will be joining the Company on March 11th. I look forward to Ralph joining the management team and the Board and believe he'll make a significant contribution to renew profitability and growth for BSQUARE.

Upon Ralph's arrival, I'll revert to my prior role of Board Chairman and Kevin Walsh will be stepping down as acting CEO. I'd like to thank, Kevin for stepping in on an interim basis. I'll now ask Kevin and CFO, Peter Biere, to take us through fourth quarter results. Kevin?

Kevin Walsh

Thank you, Andrew. During our last earnings call, we outlined a go-forward plan that included four key components. And I'm pleased to report that during the fourth quarter we progressed on each of these.

First, we stated we would narrow the focus of our database software services business to meet clear customer demand. Toward that end during the fourth quarter, we launched an IoT Services practice that leverages the valuable IoT experience and capabilities we have accumulated in data science, consulting, cloud IoT integration Embedded Device engineering and managed hosting. We are now actively selling these services.

Second, we stated that we would make carefully targeted investments in the development of our database software. During the fourth quarter, we reached software code complete for the Fortune 100 DataV customer we announced in May, 2018. Third, we stated we would apply renewed focus to ensure our traditional third-party software distribution business remains a key cash contributor. This remains an ongoing priority. In support of this goal, we've put in place programs intended to broaden the channels through which we can distribute Microsoft Windows Embedded.

And fourth, that we would seek to expand, important partnerships already in place with Amazon Web Services and Microsoft. During the fourth quarter, we signed a three-year strategic collaboration agreement with AWS