The company reported a net loss for the quarter of $545,000 on revenue of $9.8 million, compared to a loss of $2.2 million on revenue of $10.6 million in the first quarter of 2004, and a net income of $79,000 on $8.9 million revenue in the fourth quarter of 2004. Results for Q1 of 2004 included a $2.0 million loss from the company's now discontinued
hardware business unit.
Bsquare's latest quarterly results follow a pair of
back-to-back profitable quarters. The company has struggled to achieved profitability over the past several years, and the third quarter of 2004 marked its
first profitable quarter since the first quarter of 2001.
CEO Brian Crowley noted several key achievements during the latest quarter, including:
- A new SDIO Now! product roadmap.
- Continued progress on the company's reference design product initiative, a combination of pre-packaged hardware and software expected to be introduced in the second half of the year.
- The company ended the quarter with more than 20 ongoing Windows CE, PocketPC, and Smartphone projects, and successfully completed five customer service engagements during the quarter.
"This most recent quarter was a disappointment, especially considering the progress we have made over the last eighteen months," commented Crowley. "The good news is that the loss of Cardinal -- our only 10 percent customer -- was not nearly as significant at the gross profit line and we had already embarked on sales initiatives to broaden our customer base. We also made progress during the quarter addressing sales management and execution in engineering service sales and entered the second quarter with the strongest backlog in the last four quarters."
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