BSQUARE Corp. (NASDAQ:BSQR) Q1 2019 Earnings Conference Call Transcript

May 13, 2019 • 05:00 pm ET

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BSQUARE Corp. (NASDAQ:BSQR) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day and welcome to the BSQUARE Corporation First Quarter 2019 Financial Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the call over to Ms. Leslie Phillips, Investor Relations. Please go ahead, ma'am.

Executive
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 www.bsquare.com 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 Ralph Derrickson, Bsquare President and CEO.

Executive
Ralph C. Derrickson

Thank you, Leslie. It's a pleasure to speak with you today and participate in this, my first earnings call at Bsquare. I would like to thank the Board of Directors and the team at Bsquare for the warm welcome they have given me.

Since arriving on March 11th, I have focused on assessing our business, meeting our largest customers, engaging our strategic business partners, and getting to know the team here in Bellevue, in the UK and Taiwan. While there are reasons to be optimistic, the reality is the DataV product initiative has not delivered the revenue we projected and our third-party software business has continued to decline.

Acknowledging the reality of the situation, we are implementing a series of initiatives, as part of a program that I call One Bsquare. One Bsquare aligns our sales and marketing, strategic partnerships, and product development efforts allowing us to go to market with one solution that balances our embedded OS and our IoT business. Let me explain these -- each of these initiatives.

We will revise our go-to-market strategy. In the second half of 2019, we will go to market with a pragmatic edge-to-cloud message and product strategy that builds on our legacy embedded OS business with a complimentary suite of software and services that allow our customers to build and operate the next generation of intelligent devices and systems. We believe the next generation of intelligent devices, and the systems that they operate within, will be cloud-aware or cloud-enabled. They will contribute data and distributed intelligence to the system, they will provide new opportunities for lowering operating costs, and they will create the possibility for new revenue streams.

Our offering acknowledges that our customers are much earlier in their IoT cloud journey than previously contemplated, and they are looking for guidance on how to get started. Helping customers transition from a non-cloud business to a cloud-based business gives us the