BSQUARE Reports Record Revenue and Gross Profit for FY 2000; Cash Based Earnings Per Share of $.23 for 2000.Business Editors, High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers BELLEVUE Bellevue (bĕl`vy  ).1 City (1990 pop. 30,982), Sarpy co., E Nebr., a suburb of Omaha, on the Missouri River; inc. 1855. , Wash.--(BUSINESS WIRE)--Jan. 25, 2001 BSQUARE Corporation (Nasdaq:BSQR), a leading provider of software, tools and technology to power intelligent computing computing - computer devices, today reported record revenue and gross profit for both the fourth quarter and year ended December December: see month. 31, 2000. Strong demand for BSQUARE's software and services that enable the creation of intelligent computing devices continued to drive results. Cash-based earnings increased four-fold Adj. 1. four-fold - having four units or components; "quadruple rhythm has four beats per measure"; "quadruplex wire" quadruple, quadruplex, quadruplicate, fourfold in the quarter to $2.4 million, or $.07 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $541,000, or $.02 per diluted share, in the fourth quarter of 1999. Fourth quarter net income rose 116% to $962,000, or $.03 per diluted share, from $446,000, or $.01 per diluted share, in the like quarter a year ago. For the year ended December 31, 2000, cash-based earnings reached $8.3 million, or $.23 per diluted share, compared to $2.1 million, or $.07 per diluted share, in 1999. Net income for 2000, affected by charges related to BSQUARE's four acquisitions, was $734,000, or $.02 per diluted share, compared to $1.7 million, or $.06 per diluted share, in 1999. Non-cash amortization of intangibles totaled $2.9 million for the year and $1.5 million for the fourth quarter. During the year, the company recorded a $4.1 million charge for acquired in-process R&D. "2000 was a successful year for BSQUARE. We attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. record level revenue and exceeded our profit expectations by focusing our growth," said William Baxter William Baxter may refer to:
tr.v. pro·pelled, pro·pel·ling, pro·pels To cause to move forward or onward. See Synonyms at push. [Middle English propellen, from Latin us to continued success." For the fourth quarter 2000, BSQUARE's revenue rose 53% to $17.9 million compared to $11.7 million in the like quarter a year ago, which included a 167% increase in product revenue. Product revenue reached $2.1 million, or 12% of total revenue, in the fourth quarter of 2000 compared to $789,000, or 7% of total revenue, in the like quarter of the prior year. BSQUARE's product offerings increased dramatically over the last 12 months, with 19 new products brought to market. The overall increase in revenue was due to the growing demand for products and services used to develop web pads See Webpad. , set-top boxes The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. , and handheld handheld: see personal digital assistant. devices as well as the greater number of products now offered by the company. Gross profit for the quarter increased 59% to $9.6 million compared to $6.1 million in the fourth quarter of 1999. For 2000, gross profit increased 54% to $33.7 million from $21.9 million in 1999. Revenue for 2000 increased 53% to $63.5 million compared to $41.4 million in 1999. For the same period, product revenue reached $6.3 million, or 10% of total revenue compared to $2.6 million or 6% of total revenue in 1999. Fourth quarter gross margin increased in the fourth quarter to 54% from 52% in the fourth quarter a year ago. Selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. decreased to 25% of revenue compared to 29% of revenue in the fourth quarter of 1999. "We continue to improve our expense ratios as we leverage our infrastructure costs over a greater top line. As we look at our overall financial situation, we continue to prudently manage our cash flows and balance sheet while growing top line revenue," said Brian Turner The name Brian Turner can apply to:
Design wins in the quarter totaled 125 compared to 49 in the fourth quarter last year. Highlights for the year 2000 included: New Business -- Signing of the exclusive Porting Partner agreement with Microsoft, which provides BSQUARE with revenue generated directly from silicon vendors rather than through Microsoft. -- Achievement of 563 design wins in the year. BSQUARE reported 155 design wins in 1999. -- Greater penetration of BSQUARE solutions in consumer Internet appliances, enterprise thin client computing, automotive computing and consumer smart phones. New Customers -- Expansion of BSQUARE's customer base from 59 new customers in 1999 to 385 new customers in 2000. -- New design wins for 178 repeat customers. -- Expansion of BSQUARE's customer base from OEMs and semiconductors to additional players in the ICD ICD International Classification of Diseases (of the World Health Organization); intrauterine contraceptive device. ICD abbr. market, including Internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. and corporate IT departments. -- Signing of three major semiconductor service contracts in the year with Matsushita, Mitsubishi Mitsubishi: see zaibatsu. , and Infineon. Products -- Introduction of 19 new products that expand BSQUARE's market reach. -- Extension of the breadth of BSQUARE's product line to provide an end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. infrastructure solution for intelligent computing device systems which includes products for device development, communications layer development, and remote management capability from a central server. -- Reaching new market segments -- including ISPs, corporate IT departments -- with the introduction of new products. Investments -- Current headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. of 514 employees with 397 engineers, 50 sales and marketing and 67 general and administrative employees. -- Acquisition and integration of BlueWater Coordinates:
Bluewater is a super-regional shopping centre, opened on 16 March 1999. Systems, Mainbrace mainbrace Noun Naut 1. the rope that controls the movement of the spar of a ship's mainsail 2. splice the mainbrace See splice Corporation, Embedded Inserted into. See embedded system. Technologies Inc. and Toolcraft KK. Conference Call Management will host a conference call at 2:00 p.m. Pacific Time on January January: see month. 25, 2001 to discuss the Q4 and year-end results. You may listen to our live webcast at www.bsquare.com. About BSQUARE BSQUARE (Nasdaq: BSQR) is innovating tomorrow's devices through software solutions for the development of intelligent computing devices. Specializing in the Microsoft Windows See Windows. (operating system) Microsoft Windows - Microsoft's proprietary window system and user interface software released in 1985 to run on top of MS-DOS. Widely criticised for being too slow (hence "Windoze", "Microsloth Windows") on the machines available then. family of operating systems, BSQUARE supplies software products and services for the development and use of handheld computers A computing device that can be easily held in one hand while the other hand is used to operate it. The Palm devices are a popular example. See Palm, smartphone and palmtop. , set-top boxes, web pads, Internet appliances Also called "information appliance," "smart appliance," and "Web appliance," it is a device specialized for accessing the Web and/or e-mail. Designed for ease of use, it plugs into a telephone jack or LAN connection for Internet hookup. , industrial automation devices, Windows-based terminals A specialized terminal or slimmed-down PC used as a client to Windows Terminal Server. See Windows terminal. , and other mobile and wireless intelligent computing devices. From development tools to software infrastructures to end-user applications, the BSQUARE touch is on many intelligent Windows-based devices available in the market today. For more information, visit BSQUARE at http://www.bsquare.com or call 888/820-4500. BSQUARE is a registered trademark of BSQUARE Corporation. All names, product names, and tradenames are trademarks or registered trademarks of their respective holders. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our sales that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect BSQUARE's actual results include a decline in the market for Windows-based intelligent computing devices or the failure of such market to develop as anticipated, adverse changes in BSQUARE's relationship with Microsoft, delays or announcements of delays by Microsoft of Windows CE (Windows Consumer Electronics) Microsoft's version of Windows for handheld devices and embedded systems that use x86, ARM, MIPS and SHx CPUs. Windows CE .NET superseded Windows CE 3.0. product releases, the failure of BSQUARE to attract microprocessor microprocessor, integrated circuit containing the arithmetic, logic, and control circuitry required to interpret and execute instructions from a computer program. vendors and to secure contracts on sufficiently profitable terms, BSQUARE's ability to complete work under contract, competition and intellectual property risks. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in BSQUARE's Quarterly Report on Form 10-Q Form 10-Q See 10-Q. , in the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Risk Factors." Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. BSQUARE undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this release or to reflect the occurrence of unanticipated events.
BSQUARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec. 31, Dec. 31,
2000 1999
---- ----
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 39,566 $ 55,604
Short-term investments 32,785 27,368
Accounts receivable, net 12,617 4,302
Income tax receivable 1,814 274
Deferred income tax asset 1,945 1,035
Prepaid expenses and
other current assets 1,395 609
--------- ---------
Total current assets 90,122 89,192
Furniture, equipment and
leasehold improvements, net 5,640 7,238
Intangible assets, net 20,956 --
Investments 4,628 --
Deposits and other assets 916 212
--------- ---------
Total assets $ 122,262 $ 96,642
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 725 $ 654
Accrued expenses 8,107 5,733
Deferred income taxes 1,078 --
Deferred revenue 3,652 1,130
--------- ---------
Total current liabilities 13,562 7,517
--------- ---------
Long-term debt 353 --
--------- ---------
Shareholders' equity:
Blue Water Systems, Inc.
Series A Preferred stock -- 250
Common stock 109,268 90,845
Deferred stock option compensation (314) (868)
Cumulative foreign currency
translation adjustment (254) (15)
Accumulated deficit (353) (1,087)
--------- ---------
Total shareholders' equity 108,347 89,125
--------- ---------
Total liabilities and
shareholders' equity $ 122,262 $ 96,642
========= =========
BSQUARE CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)
Three Months Year
Ended December 31, Ended December 31,
----------------------------------------
2000 1999 2000 1999
---- ---- ---- ----
(unaudited)
Revenue:
Service $ 15,766 $ 10,907 $ 57,196 $ 38,823
Product 2,103 789 6,306 2,583
-------- -------- -------- --------
Total revenue 17,869 11,696 63,502 41,406
-------- -------- -------- --------
Cost of revenue:
Service 7,681 5,372 28,195 18,980
Product 544 270 1,591 529
-------- -------- -------- --------
Total cost of
revenue 8,225 5,642 29,786 19,509
-------- -------- -------- --------
Gross profit 9,644 6,054 33,716 21,897
-------- -------- -------- --------
Operating expenses:
Research and
development 2,595 2,516 9,258 7,506
Selling, general
and administrative 4,431 3,429 16,675 11,935
Acquired in-process
research and
development -- -- 4,100 --
Amortization of
intangible assets 1,459 -- 2,920 --
Amortization of
deferred stock option
compensation 108 146 555 583
-------- -------- -------- --------
Total operating
expenses 8,593 6,091 33,508 20,024
-------- -------- -------- --------
Income (loss) from
operations 1,051 (37) 208 1,873
Other income (expense), net:
Investment income, net 621 710 3,282 926
Acquisition related
expenses -- -- (620) --
-------- -------- -------- --------
Income before
income taxes 1,672 673 2,870 2,799
Provision for
income taxes 710 227 2,136 1,104
-------- -------- -------- --------
Net income $ 962 446 $ 734 $ 1,695
======== ======== ======== ========
Basic earnings
per share $ 0.03 $ 0.01 $ 0.02 $ 0.08
======== ======== ======== ========
Weighted average
shares outstanding
used to compute basic
earnings per share 33,847 31,655 33,275 21,430
======== ======== ======== ========
Diluted earnings
per share $ 0.03 $ 0.01 $ 0.02 $ 0.06
======== ======== ======== ========
Weighted average
shares outstanding
used to compute
diluted earnings
per share 35,946 32,800 35,932 30,800
======== ======== ======== ========
Reconciliation of net
income per share to
pro forma cash-based
earnings per share:
Net income per
diluted share: $ 0.03 $ 0.01 $ 0.02 $ 0.06
Acquired in-process
research and
development -- -- 0.11 --
Acquisition related
expenses, net of tax
effect -- -- 0.01 --
Amortization of
intangible assets,
net of tax effect
0.04 -- 0.08 --
Amortization of
deferred stock option
compensation, net of
tax effect -- 0.01 0.01 0.01
-------- -------- -------- --------
Cash-based
earnings per share $ 0.07 $ 0.02 $ 0.23 $ 0.07
======== ======== ======== ========
Net income: $ 962 $ 446 $ 734 $ 1,695
Acquired in-process
research and
development -- -- 4,100 --
Acquisition related
expenses, net of
tax effect -- -- 515 --
Amortization of
intangible assets,
net of tax effect 1,334 -- 2,628 --
Amortization of
deferred stock
option compensation,
net of tax effect 70 95 361 379
-------- -------- -------- --------
Cash-based net income $ 2,366 $ 541 $ 8,338 $ 2,074
======== ======== ======== ========
Weighted average
shares outstanding
to compute pro forma
cash-based diluted
earnings per share
35,946 32,800 35,932 30,800
======== ======== ======== ========
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