BSQUARE CORP /WA - FORM 8-K - EX-99.1 - BSQUARE CORPORATION INVESTOR PRESENTATION, DECEMBER 2010

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EX-99.2 - PRESS RELEASE, DATED DECEMBER 2, 2010 - BSQUARE CORP /WA	dex992.htm
8-K - FORM 8-K - BSQUARE CORP /WA	d8k.htm

All

other

names,

product

names

and

trade

names

are

trademarks

registered

trademarks

their

respective

holders.

BSQUARE CORPORATION

NASDAQ: BSQR

December 2010

Exhibit 99.1

Forward Looking Statements

These

slides

and

the

corresponding

oral

presentation

contain

“forward-looking

statements”

within

the

meaning

the

Private Securities Litigation Reform Act of 1995, including, without limitation, statements relating to: our projected

financial results for 2010 or any other future period, expectations related to any of our initiatives, future and potential

sales or projects, expansion of our products, services, and third party software that we distribute as well as the

geographies where we sell them, our agreements and proposed agreements with Ford, Coca-Cola Company and

other partners and customers and the opportunities that may arise from such agreements, the opportunities in the

operating system, handset certification, and automotive markets, the overall demand for connected devices and

opportunities that may arise from that demand, geographic expansion and growth potential in Asia and other regions.

All statements contained in this presentation that do not relate to matters of historical fact should be

considered forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause

actual results to differ materially from such statements. There can be no assurances that forward-looking statements

will be achieved. Important factors that could cause actual results to differ materially from those indicated in forward-

looking statements include, but are not limited to: whether we are able to maintain our existing favorable relationships

with Microsoft and Ford; risks, uncertainties and changes in financial condition; our ability to execute our product

strategies for TestQuest

and other products; intellectual property risks; market risks related to the demand for

connected devices; risks related to our growth and expansion plans in new geographies and with new products and

services; and overall risks associated with our international operations.

All forward-looking statements should be considered in light of various important factors, including but not

limited

the

risks

and

uncertainties

listed

above.

The

Company

makes

commitment

revise

update

any

forward-looking statements in order to reflect events or circumstances after the date any such statement is made.

Please also refer to the Company’s most recent quarterly report on Form 10-Q, annual report on Form 10-K, and

other filings with the SEC, along with the Company’s earnings press release and the printed transcript of the

Company’s earnings related conference call, for other important risk factors that could cause actual results to differ

materially from those indicated.

Mission

BSQUARE will be the leading enabler of smart, connected

devices worldwide; delighting our customers, employees and

shareholders with superior products and services that deliver

best-of-class solutions into targeted industries.

We will build deep competency in our markets and

technologies with the best people, partners and processes.

BSQUARE Fast Facts

Market leader in smart, connected device and software

solutions

Worldwide sales and service footprint

Impressive customer list

270 headcount worldwide

Experienced management team

2010 YTD revenue = $69.2M (up 41% Y/Y)

Q310 revenue = $25.3M (second-best Q ever)

Cash at 9/30/10 = $21.5M (no debt)

12/14/2010

Worldwide Customers and Partners

All other names, product names and trade names are trademarks or registered trademarks of their respective holders.

Booming Demand for Smart, Connected Devices

Drivers:

•

Cloud-based computing models

•

Increased availability of applications

•

Tech savvy consumers

Key markets:

•

Smartphone

•

Automotive Telematics

•

Medical

•

Industrial

•

Consumer Electronics

Retail/POS

Technology advancements (CPU/OS)

Smart, Connected Devices:

The Next 15 Billion End-Points

Increasing complexity means device makers will require

more software:

•

Network connectivity

•

3G, 4G WAN

•

Wi-Fi, Bluetooth

•

Sophisticated user interfaces

•

HD Video

•

Highly graphical

•

Touch-based

•

High performance

•

Intelligent power management

•

Hundreds of thousands of

sophisticated and connected

applications

•

Testing, certification

BSQUARE’s

Integrated Product and Service

Portfolio

BSQUARE = Smart, Connected Devices

Training and Technical Support

MyFord

Touch is a trademark of the Ford Motor Company

Adobe and Flash are trademarks of Adobe

MyFord

Touch

Solution

•

Hardware architecture and design

•

System and UI architecture design

•

Adobe

Flash

platform porting

•

System software (board support package)

•

Third-party project management

•

Third-party application integration

•

Quality assurance testing

•

Adobe

Flash

platform licensing

•

TestQuest

licensing

Result

•

Ford

currently

shipping

MyFord

Touch®

the

2011

Ford

Edge, Ford Explorer and Lincoln MKX and will be available

on the Ford Focus

MyFordTouch

Overview:

BSQUARE is the lead systems integrator for MyFord

Touch®, an

innovative and advanced automotive telematics

and infotainment system

Freestyle is a trademark of the Coca-Cola Company

Coca-Cola Freestyle

Solution

•

User interface (UI) and application consulting

•

UI architecture design

•

Data and device management software integration

•

Quality assurance testing

•

BSQUARE IP: FlexUI

skinning engine

•

BSQUARE IP: Schema BSP solution

•

Windows CE licensing

Result

•

An intuitive user-interface makes the machine easy to use by

consumers, restaurant managers and service technicians

•

Currently being deployed in several North American markets

Coca-Cola Freestyle™

Overview:

BSQUARE served as lead systems integrator for The Coca-Cola

Freestyle™

which brings innovative technology to consumers by offering 100+

sparkling and still branded beverage selections from one machine.

Growth Strategies

Expand our product and service

portfolio to meet the growing demand

for smart, connected devices

Expand sales footprint in Asia

•

Today: Taiwan and Japan

•

Add: Korea, China in 2011

Expand Asia development capacity to serve Asia and cost-

sensitive North America customers

Vertical market focus

•

Mobile

•

Automotive

Expand Customer Base

Expand Services Portfolio

Expand Asia engineering capacity

•

Expand Taiwan, build out China

•

Grow Asia customer base

Expand Android practice

Expand Applications practice

Focus on gross

margin improvement

Development

Centers

Sales Offices

Sales + Development

Expand Product Portfolio

TestQuest

handset certification platform

•

Product offering to accelerate technical acceptance (TA) and market

entry of handsets for Mobile Network Operators (MNOs) and

original equipment manufacturers (OEMs) while improving the

overall consumer experience

3rd Party Products

•

Expand our current distribution

franchises to new regions

•

Add additional products to

our portfolio

•

Become the largest distributor

of embedded software,

worldwide

Growth Opportunities Summary

Opportunity

Potential

Incremental 2011

Revenue

Potential 2011

Margin %

BSQUARE IP

$2M-$4M

85%+

BSQUARE Services

$4M-$6M

~25-30%

Third Party IP

$15M-

$30M

~12-15%

Total

$21M-$40M

~22% blended

Driving growth through new products and services

*Amounts incremental to anticipated full-year FY10 run rate

Revenue Trends

$65.8

$25.3

$42.9

$49.8

$59.4

16%

19%

11%

$64.4

-2%

$69.2

$49.2

41%

Through 9 Months

25.7

30.3

34.2

35.5

32.4

22.9

45.4

18.0

11.7

16.9

21.0

27.2

27.8

23.2

20.8

6.2

2.6

4.2

3.1

4.2

3.1

3.0

1.1

FY05

FY06

FY07

FY08

FY09

YTD09

YTD10

Q310

Proprietary software

Engineering

services

Third party software

FY05

FY06

FY07

FY08

FY09

YTD09

YTD10

Q310

Proprietary Software

Service

3rd Party Software

$12.0

24%

15%

31%

88%

$12.2

25%

87%

25%

$5.0

20%

83%

24%

15%

$9.9

23%

95%

29%

14%

Gross Profit and Margin Trends

$15.5

26%

13%

32%

16%

$17.2

26%

95%

29%

16%

$13.4

21%

86%

17%

16%

24%

14%

$14.0

20%

85%

16%

Through

Months

2.0

2.8

2.4

3.3

4.3

3.2

2.5

0.8

4.9

5.4

6.0

7.1

7.9

5.9

2.0

4.6

5.3

5.0

4.1

3.0

3.5

1.2

FY05

FY06

FY07

FY08

FY09

YTD09

YTD10

Q310

G&A

S&M

R&D

$12.9

26%

$12.0

24%

$4.0

16%

$11.5

27%

Operating

Expense Trends

$13.6

23%

$15.4

23%

$16.3

25%

$11.9

17%

Through 9 Months

Bottom Line History

Q310 EBITDAS = $1.5 million

YTD10 EBITDAS = $3.4 million

FY09 EBITDAS = $(1.1) million

FY08 EBITDAS = $4.1 million

FY07 EBITDAS = $3.4 million

$0.05/share

negative impact of

auction rate security

write-down

$0.05/share

benefit from

reversal of

legal liability

2006

2007

2008

2009

Q310

Cash, Investments &

Restricted (ST & LT)

$11.1

$15.0

$13.3

$18.0

$21.5

Net Working Capital

$10.3

$14.2

$10.6

$10.3

$16.4

Debt

$ --

Outstanding

Basic

9.6

9.8

10.0

10.1

10.2

Options/RSUs Outstanding

2.0

2.1

2.3

2.2

Other Information

All other names, product names and trade names are trademarks or registered trademarks of their respective holders.

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