One aspect I applaud and appreciate regarding BSquare is they put prepared conference call remarks in a transcript on the company website. This is far more efficient for current and prospective investors studying the company.
It also, in my opinion, reflects a spirit of openness and honesty from management.

http://phx.corporate-ir.net/External.Fil...

The bad news in Q3 is both the Ford contract and TestQuest, two key components in BSQR's turnaround strategy, were somewhat off track. That was disappointing.

The best case scenario with Ford is they appreciate BSquare's project acceleration and the problem is simply getting paperwork caught up to help pay for it. The worst case scenario is Ford has no intention of paying one dime above the current project cap.

Good news in the Q3 release included BSquare posting yet another profitable quarter and generating positive cash flow. Revenues are holding steady near $16 million. With $16 million in cash BSquare's Enterprise Value is still only $9 million at $2.50 per share.

The new Texas Instruments initiatives appear to be solidly on track. The reseller partnership with MicroSoft appears to be gaining momentum and the newly announced agreement a very positive step.

BSquare took over TestQuest last year with the product line in need of updating and with its electronic industry customer base moving into a deep recession. The electronics industry appears to be rebounding strongly and that should create an solid market opportunity for TestQuest if they get the right product line and marketing program in place.

The same is true for BSquare's general electronics consulting and development opportunities. For the past 12+ months the electronics industry has been in a hunker-down-and-survive mode. That downswing is reversing. If BSquare is good at what they do, and as shareholders we hope they are, the company's stream of RFP's and eventually signed contracts should ramp up.

A strong upswing in revenues and profits will likely require more patience. As with all microcap tech stocks, there is no guarantee that upside potential will ever happen.

A factor that helps limit BSQR's downside risk, however, is the $100 million net-operating-loss. That should shelter the company from income tax for a long, long time if/when revenues and profits eventually ramp up.

Based on today's trading there was no shareholder panic for the exits after yesterday's Q3 earnings release.

Those are those from an apple grower. I always appreciate hearing other perspective on BSquare via the chatboard or e-mail.

Good luck to everyone.

Fujigrower@gmail.com