Financial Data and Key Metrics Changes - Total revenue for Q2 2023 was approximately $6.5 million, a decrease of $1.6 million or 20% from Q1 2023, primarily driven by a $1.5 million decline in the Partner Solutions segment [12][4] - Net loss for the quarter was $300,000 or $0.01 per diluted share, compared to a net loss of $100,000 in Q1 2023 [15][12] - Year-to-date net loss improved by $1.2 million, a 78% improvement compared to the same period in 2022 [33] Business Line Data and Key Metrics Changes - Partner Solutions revenue decreased by $1.5 million or 21% quarter-over-quarter, continuing a general trend [4] - Edge to Cloud segment revenue was $774,000, a decrease of $100,000 compared to Q1 2023, driven by reduced professional services [5] - Partner Solutions gross profit increased to $164,000, with a gross margin rate improvement of 6.8 percentage points [28] Market Data and Key Metrics Changes - The company noted a trend of embedded product developers increasingly turning to Linux and Android operating systems, impacting Microsoft OS licensing revenue [17][32] - The expectation is to keep licensing revenue erosion under 15% as customers switch to alternatives [9] Company Strategy and Development Direction - The company is exploring strategic options for generating shareholder value and has engaged Telegraph Hill Advisors for this process [34] - There is a focus on operational efficiency and the potential for SquareOne to become a high-margin SaaS business [20][36] - Significant architectural improvements have been made to SquareOne, allowing for the integration of AI and ML capabilities [21] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the decline in Partner Solutions revenue but acknowledged it aligns with the broader trend in Microsoft OS licensing [17] - The company aims to achieve breakeven operations and has made progress in reducing operational losses [33] - Management emphasized the importance of maximizing operational assets while pursuing strategic options to return value to shareholders [36] Other Important Information - The company repurchased approximately 730,000 shares for just over $860,000 under a program that expired on June 30, 2023, which was not renewed [16][34] - Cash, cash equivalents, and short-term investments totaled $33.4 million as of June 30, 2023, a decrease of $2.3 million compared to December 31, 2022 [31] Q&A Session Summary Question: What is the outlook for the company's revenue and strategic initiatives? - There were no questions during the Q&A session, indicating a lack of immediate investor inquiries [23]
BSQUARE(BSQR) - 2023 Q2 - Earnings Call Transcript