Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | BSQR | |
Entity Registrant Name | BSQUARE CORP /WA | |
Entity Central Index Key | 1,054,721 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 12,690,868 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 10,692 | $ 12,859 |
Short-term investments | 10,743 | 11,895 |
Accounts receivable, net of allowance for doubtful accounts of $50 at March 31, 2018 and $50 at December 31, 2017 | 16,712 | 18,014 |
Prepaid expenses and other current assets | 832 | 548 |
Contract assets | 934 | 937 |
Total current assets | 39,913 | 44,253 |
Equipment, furniture and leasehold improvements, net | 954 | 989 |
Intangible assets, net | 341 | 365 |
Goodwill | 3,738 | 3,738 |
Other non-current assets including contract assets | 164 | 89 |
Total assets | 45,110 | 49,434 |
Current liabilities: | ||
Third-party software fees payable | 10,689 | 10,547 |
Accounts payable | 279 | 375 |
Accrued compensation | 1,902 | 2,266 |
Other accrued expenses | 1,114 | 681 |
Deferred rent, current portion | 343 | 339 |
Deferred revenue | 962 | 3,219 |
Total current liabilities | 15,289 | 17,427 |
Deferred rent | 429 | 516 |
Deferred revenue | 52 | 61 |
Shareholders' equity: | ||
Preferred stock, no par: 10,000,000 shares authorized; no shares issued and outstanding | ||
Common stock, no par: 37,500,000 shares authorized; 12,688,791 issued and outstanding at March 31, 2018 and 12,664,489 issued and outstanding at December 31, 2017 | 137,965 | 137,622 |
Accumulated other comprehensive loss | (915) | (916) |
Accumulated deficit | (107,710) | (105,276) |
Total shareholders' equity | 29,340 | 31,430 |
Total liabilities and shareholders' equity | $ 45,110 | $ 49,434 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 50 | $ 50 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 37,500,000 | 37,500,000 |
Common stock, shares issued | 12,688,791 | 12,664,489 |
Common stock, shares outstanding | 12,688,791 | 12,664,489 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Professional engineering service | $ 2,819 | $ 3,390 |
Total revenue | 20,678 | 22,841 |
Cost of revenue: | ||
Professional engineering service | 2,083 | 2,474 |
Total cost of revenue | 15,478 | 16,588 |
Gross profit | 5,200 | 6,253 |
Operating expenses: | ||
Selling, general and administrative | 5,448 | 4,865 |
Research and development | 2,230 | 1,347 |
Total operating expenses | 7,678 | 6,212 |
Income (loss) from operations | (2,478) | 41 |
Other income, net | 44 | 55 |
Income (loss) before income taxes | (2,434) | 96 |
Income tax benefit | 106 | |
Net income (loss) | $ (2,434) | $ 202 |
Basic income (loss) per share | $ (0.19) | $ 0.02 |
Diluted income (loss) per share | $ (0.19) | $ 0.02 |
Shares used in per share calculations: | ||
Basic | 12,673 | 12,550 |
Diluted | 12,673 | 12,848 |
Net income (loss) | $ (2,434) | $ 202 |
Other comprehensive loss | ||
Foreign currency translation, net of tax | (11) | (7) |
Unrealized gain on investments, net of tax | 10 | 5 |
Total other comprehensive loss | (1) | (2) |
Comprehensive income (loss) | (2,435) | 200 |
Third Party Software [Member] | ||
Revenue: | ||
Software | 16,064 | 16,797 |
Cost of revenue: | ||
Software | 13,354 | 14,082 |
Proprietary Software [Member] | ||
Revenue: | ||
Software | 1,795 | 2,654 |
Cost of revenue: | ||
Software | $ 41 | $ 32 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (2,434) | $ 202 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 141 | 153 |
Stock-based compensation | 331 | 399 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 1,302 | 5,078 |
Contract assets, current | 3 | 203 |
Prepaid expenses and other assets | (359) | (617) |
Third-party software fees payable | 142 | (5,720) |
Accounts payable and accrued expenses | (27) | (41) |
Deferred revenue | (2,266) | (1,804) |
Deferred rent | (83) | (76) |
Net cash used in operating activities | (3,250) | (2,223) |
Cash flows from investing activities: | ||
Purchases of equipment and furniture | (82) | (83) |
Proceeds from maturities of short-term investments | 6,125 | 9,750 |
Purchases of short-term investments | (4,983) | (12,146) |
Net cash provided by (used in) investing activities | 1,060 | (2,479) |
Cash flows provided by financing activities: | ||
Proceeds from exercise of stock options | 12 | 91 |
Effect of exchange rates on cash | 11 | 3 |
Net decrease in cash and cash equivalents | (2,167) | (4,608) |
Cash and cash equivalents, beginning of period | 12,859 | 14,312 |
Cash and cash equivalents, end of period | $ 10,692 | $ 9,704 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of BSQUARE Corporation (“BSQUARE”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting and include the accounts of BSQUARE and our wholly owned subsidiaries. In the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), prior period software revenue has been separately presented as third-party software and proprietary software to conform to current period presentation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the unaudited condensed consolidated financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly our financial position as of March 31, 2018, and our operating results and cash flows for the three months ended March 31, 2018 and 2017. The accompanying financial information as of December 31, 2017 is derived from audited financial statements. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements and bonus accruals. Actual results may differ from these estimates. Interim results are not necessarily indicative of results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017. All intercompany balances have been eliminated. Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases” (“ASU 2016-02”), to make leasing activities more transparent and comparable, requiring most leases to be recognized by lessees on their balance sheets as right-of-use assets, along with corresponding lease liabilities. ASU 2016-02 is effective for annual periods beginning after December 31, 2018 and interim periods within that year, with early adoption permitted. We are currently evaluating the impact this ASU may have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), Income (Loss) Per Share We compute basic income (loss) per share using the weighted average number of common shares outstanding during the period, and exclude any dilutive effects of common stock equivalent shares, such as options and restricted stock units (“RSUs”). We consider RSUs as outstanding and include them in the computation of basic income (loss) per share only when vested. We compute diluted income (loss) per share using the weighted average number of common shares outstanding and common stock equivalent shares outstanding during the period using the treasury stock method. We exclude common stock equivalent shares from the computation if their effect is anti-dilutive. The following potentially dilutive shares were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended March 31, 2018 2017 Stock options 1,528,907 1,160,015 Restricted stock units 64,192 - |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition On January 1, 2017, we adopted ASU 2014-09, “Revenue from Contracts with Customers” (“Topic 606”), applying the modified retrospective method to all contracts that were not completed as of that date. Results for reporting periods beginning after January 1, 2017 are presented under Topic 606, while prior period results are not adjusted and continue to be reported under the accounting standards in effect for the prior period. We recorded an increase to opening equity of $404,000 as of January 1, 2017 due to the cumulative impact of adopting Topic 606. Disaggregation of revenue The following table provides information about disaggregated revenue by primary geographical market and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands): Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Third-Party Software Proprietary Software Professional Engineering Service Total Third-Party Software Proprietary Software Professional Engineering Service Total Primary geographical markets: North America $ 15,119 $ 1,683 $ 2,487 $ 19,289 $ 16,296 $ 2,645 $ 2,829 $ 21,770 Europe 593 100 246 939 424 — 398 822 Asia 352 12 86 450 77 9 163 249 Total $ 16,064 $ 1,795 $ 2,819 $ 20,678 $ 16,797 $ 2,654 $ 3,390 $ 22,841 Contract balances We receive payments from customers based upon contractual billing schedules; accounts receivable is recorded when the right to consideration becomes unconditional. Contract assets include amounts related to our contractual right to consideration for completed performance objectives not yet invoiced and deferred contract acquisition costs, which are amortized along with the associated revenue. Contract liabilities include payments received in advance of performance under the contract and are realized with the associated revenue recognized under the contract. We had no asset impairment charges related to contract assets in the period. Significant changes in the contract assets and the contract liabilities balances during the periods are as follows (in thousands): Three Months Ended March 31, 2018 Contract Assets Contract Liabilities (1) Revenue recognized that was included in the contract liability (deferred revenue) at December 31, 2017 $ — $ 2,214 Transferred to receivables from contract assets recognized at December 31, 2017 238 — (1) Contract acquisition costs We capitalize contract acquisition costs for contracts with life exceeding one year, as is more common with our DataV software bookings. A mortization of contract acquisition costs was $80,000 and $141,000 for the three months ended March 31, 2018 and 2017, respectively, and there was no impairment loss in relation to costs capitalized for either period. For contracts that have a duration of less than one year, we apply a practical expedient and expense these costs when incurred. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The estimated revenues do not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that are unexercised as of March 31, 2018 (in thousands): Remainder of 2018 2019 2020 2021 Third-party software $ 89 $ 50 $ 14 $ — Proprietary software 1,138 1,133 820 114 Professional engineering services 230 — — — Practical expedients and exemptions We generally expense sales commissions when incurred because the amortization period would have been less than one year. We record these costs within selling, general and administrative expenses. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 3 Months Ended |
Mar. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Investments | 3. Cash, Cash Equivalents and Investments Cash, cash equivalents and short-term investments consisted of the following (in thousands): March 31, 2018 December 31, 2017 Cash $ 7,901 $ 6,340 Cash equivalents (see detail in Note 4) 2,791 6,519 Total cash and cash equivalents 10,692 12,859 Short-term investments (see detail in Note 4) 10,743 11,895 Total cash, cash equivalents and short-term investments $ 21,435 $ 24,754 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements We measure our cash equivalents and short-term investments at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Directly or indirectly observable market-based inputs or unobservable inputs used in models or other valuation methodologies. Level 3: Unobservable inputs that are not corroborated by market data. The inputs require significant management judgment or estimation. We classify our cash equivalents and short-term investments within Level 1 or Level 2 because our cash equivalents and short-term investments are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Assets measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 are summarized below (in thousands): March 31, 2018 December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 297 $ — $ 297 $ 2,274 $ — $ 2,274 Corporate commercial paper — 2,494 2,494 — 3,245 3,245 Corporate debt — — — — 1,000 1,000 Total cash equivalents 297 2,494 2,791 2,274 4,245 6,519 Short-term investments: Corporate commercial paper — 4,970 4,970 — 5,480 5,480 Corporate debt — 5,773 5,773 — 6,415 6,415 Total short-term investments — 10,743 10,743 — 11,895 11,895 Total assets measured at fair value $ 297 $ 13,237 $ 13,534 $ 2,274 $ 16,140 $ 18,414 As of March 31, 2018 and December 31, 2017, contractual maturities of our short-term investments were less than one year, and gross unrealized gains and losses on those investments were not material. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Goodwill was originally recorded in connection with the September 2011 acquisition of MPC Data, Ltd. (renamed BSQUARE EMEA, Ltd. in 2015), a United Kingdom based provider of software engineering services. The excess of the acquisition consideration over the fair value of net assets acquired was recorded as goodwill and is included within the professional engineering services reporting unit. There were no changes in the carrying amount of goodwill during the three months ended March 31, 2018. Intangible assets relate to customer relationships that we acquired from TestQuest, Inc. in November 2008 and from the acquisition of BSQUARE EMEA, Ltd. in September 2011. Information regarding our intangible assets is as follows (in thousands): March 31, 2018 December 31, 2017 Gross Carrying Gross Carrying Amount Amortization Value Amount Amortization Value Customer relationships: $ 1,275 $ (934 ) $ 341 $ 1,275 $ (910 ) $ 365 Amortization expense was $25,000 for each of the three months ended March 31, 2018 and 2017. Amortization in future periods is expected to be as follows (in thousands): Remainder of 2018 $ 74 2019 98 2020 98 2021 71 Total $ 341 |
Credit Agreement
Credit Agreement | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Credit Agreement | 6. Credit Agreement Line of Credit On September 22, 2015, we entered into a two-year unsecured line of credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. (the “Bank”) in the principal amount of up to $12.0 million. On September 29, 2016, the Credit Agreement was modified to extend the final due date an additional year to September 22, 2018. At our election, advances under the Credit Agreement shall bear interest at either (1) a rate per annum equal to 1.5% below the bank’s applicable prime rate or (2) 1.5% above the Bank’s applicable LIBOR rate, in each case as defined in the Credit Agreement. The Credit Agreement contains customary affirmative and negative covenants, including compliance with financial ratios and metrics, as well as limitations on our ability to pay distributions or dividends while there is an ongoing event of default or to the extent such distribution causes an event of default. We are required to maintain certain minimum interest coverage ratios, liquidity levels and asset coverage ratios as defined in the Credit Agreement. While we were in compliance with all covenants under the Credit Agreement as of March 31, 2018, the required interest coverage ratio would not permit us to borrow under the Credit Agreement. There were no amounts outstanding under the Credit Agreement as of March 31, 2018 or December 31, 2017. In September 2016, we entered into a letter of credit agreement for $250,000 secured by the Credit Agreement in connection with the lease of our corporate headquarters. Accordingly, the maximum principal amount available if we were eligible to borrow under the Credit Agreement has been reduced to $11.75 million. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity Equity Compensation Plans We have a stock plan (the “Stock Plan”) and an inducement stock plan for newly hired employees (together with the Stock Plan, the “Plans”). Under the Plans, stock options to purchase shares of our common stock may be granted with a fixed exercise price that is equal to the fair market value of our common stock on the date of grant. These options have a term of up to 10 years and vest over a predetermined period, generally four years. Incentive stock options granted under the Stock Plan may only be granted to our employees. The Plans also allow for awards of non-qualified stock options, stock appreciation rights, restricted and unrestricted stock awards, and RSUs. Stock-Based Compensation The estimated fair value of stock-based awards is recognized as compensation expense over the vesting period of the award, net of estimated forfeitures. We estimate forfeitures based on historical experience and expected future activity. The fair value of RSUs is determined based on the number of shares granted and the quoted price of our common stock on the date of grant. The fair value of stock option awards is estimated at the grant date based on the fair value of each vesting tranche as calculated by the Black-Scholes-Merton (“BSM”) option-pricing model. The BSM model requires various highly judgmental assumptions including expected volatility and option life. If any of the assumptions used in the BSM model change significantly, stock-based compensation expense may differ materially in the future from that recorded in the current period. The fair values of our stock option grants were estimated with the following weighted average assumptions: Three Months Ended March 31, 2018 2017 Dividend yield 0 % 0 % Expected life 5.4 years 3.3 years Expected volatility 54 % 53 % Risk-free interest rate 2.4 % 1.7 % The impact on our results of operations from stock-based compensation expense was as follows (in thousands, except per share amounts): Three Months Ended March 31, 2018 2017 Cost of revenue — professional engineering service $ 11 $ 65 Selling, general and administrative 264 284 Research and development 56 50 Total stock-based compensation expense $ 331 $ 399 Per diluted share $ 0.03 $ 0.03 Stock Option Activity The following table summarizes stock option activity under the Plans: Weighted Average Remaining Weighted Average Contractual Life Aggregate Number of Shares Exercise Price (in years) Intrinsic Value Balance at December 31, 2017 1,912,161 $ 4.88 7.61 $ 781,735 Granted 170,643 4.16 Exercised (680 ) 3.62 Forfeited (11,100 ) 5.28 Expired (13,556 ) 5.78 Balance at March 31, 2018 2,057,468 $ 4.81 7.59 $ 559,221 Vested and expected to vest at March 31, 2018 1,924,493 $ 4.80 7.49 $ 554,722 Exercisable at March 31, 2018 1,127,389 $ 4.55 6.54 $ 534,925 At March 31, 2018, total compensation cost related to stock options granted but not yet recognized was $1,086,466, net of estimated forfeitures. This cost will be amortized on the straight-line method over a weighted-average period of approximately 1.5 years. The following table summarizes certain information about stock options: Three Months Ended March 31, 2018 2017 Weighted average grant-date fair value for options granted during the period $ 2.09 $ 3.01 Options in-the-money 737,632 1,224,182 Aggregate intrinsic value of options exercised during the period $ 275 $ 40,421 The aggregate intrinsic value represents the difference between the exercise price of the underlying options and the quoted price of our common stock for the number of options that were exercised during the period. We issue new shares of common stock upon exercise of stock options. Restricted Stock Unit Activity The following table summarizes RSU activity under the Plans: Number of Weighted Average Shares Award Price Unvested at December 31, 2017 116,968 $ 5.33 Granted 10,000 4.24 Vested (24,856 ) 5.20 Forfeited — — Unvested at March 31, 2018 102,112 $ 5.25 Expected to vest after March 31, 2018 90,343 $ 5.26 At March 31, 2018, total compensation cost related to RSUs granted but not yet recognized was $192,522, net of estimated forfeitures. This cost will be amortized on the straight-line method over a weighted-average period of approximately 1.2 years. Common Stock Reserved for Future Issuance The following table summarizes our shares of common stock reserved for future issuance under the Plans as of March 31, 2018: March 31, 2018 Stock options outstanding 2,057,468 Restricted stock units outstanding 102,112 Stock options available for future grant 1,033,269 Common stock reserved for future issuance 3,192,849 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Lease and rent obligations Our commitments include obligations outstanding under operating leases, which expire through 2021. We have lease commitments for office space in Bellevue, Washington; Boston, Massachusetts; Taipei, Taiwan; Tokyo, Japan; and Trowbridge, UK. We also lease office space on a month-to-month basis in Akron, Ohio. In August 2013, we amended the lease agreement for our Bellevue, Washington headquarters, and extended the term of the original lease that was scheduled to expire in August 2014 to May 2020. Rent expense was $264,000 and $260,000 for the three months ended March 31, 2018 and 2017, respectively. Future operating lease commitments are as follows by calendar year (in thousands): March 31, 2018 Remainder of 2018 $ 891 2019 1,132 2020 531 2021 16 Total commitments $ 2,570 Loss Contingencies From time to time, we are subject to legal proceedings, claims, and litigation arising in the ordinary course of business including tax assessments. We defend ourselves vigorously against any such claims. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, we record the estimated loss. We provide disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both of these conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. We base accruals made on the best information available at the time, which can be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements. |
Information about Geographic Ar
Information about Geographic Areas and Operating Segments | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Information about Geographic Areas and Operating Segments | 9. Information about Geographic Areas and Operating Segments Our chief operating decision-makers (i.e. our Chief Executive Officer and certain direct reports) review financial information presented on a consolidated basis, accompanied by disaggregated information for purposes of allocating resources and evaluating financial performance. There are no segment managers who are held accountable by our chief operating decision-makers, or anyone else, for operations, operating results, or planning for levels or components below the consolidated unit level. We operate within a single industry segment of computer software and services. We have three major product lines – third-party software, proprietary software and professional engineering service – each of which we consider to be operating and reportable segments. We do not allocate costs other than direct cost of goods sold to the segments or produce segment income statements. We do not produce asset information by reportable segment and it is not presented here. The following table sets forth profit and loss information about our segments (in thousands): Three Months Ended March 31, 2018 2017 Third-party software: Revenue $ 16,064 $ 16,797 Cost of revenue 13,354 14,082 Gross profit 2,710 2,715 Proprietary software: Revenue 1,795 2,654 Cost of revenue 41 32 Gross profit 1,754 2,622 Professional Engineering Service: Revenue 2,819 3,390 Cost of revenue 2,083 2,474 Gross profit 736 916 Total gross profit 5,200 6,253 Operating expenses 7,678 6,212 Other income, net 44 55 Income tax benefit — 106 Net income (loss) $ (2,434 ) $ 202 Revenue by geography is based on the sales region of the customer. The following tables set forth revenue and long-lived assets by geographic area (in thousands): Three Months Ended March 31, 2018 2017 Total revenue: North America $ 19,289 $ 21,770 Asia 450 249 Europe 939 822 Total revenue $ 20,678 $ 22,841 March 31, 2018 December 31, 2017 Long-lived assets: North America $ 986 $ 991 Asia 94 76 Europe 4,110 4,114 Total long-lived assets $ 5,190 $ 5,181 |
Significant Risk Concentrations
Significant Risk Concentrations | 3 Months Ended |
Mar. 31, 2018 | |
Risks And Uncertainties [Abstract] | |
Significant Risk Concentrations | 10. Significant Risk Concentrations Significant Customer Honeywell International, Inc. and affiliated entities (“Honeywell”) accounted for $2.6 million, or 13% of total revenue, for the three months ended March 31, 2018, and $3.3 million, or 15% of total revenue, for the three months ended March 31, 2017. PACCAR Inc. and affiliated entities accounted for $3.0 million, or 13% of total revenue for the three months ended March 31, 2017. Honeywell had accounts receivable balances of $9.1 million, or approximately 54% of total accounts receivable, at March 31, 2018, and $8.7 million, or approximately 48% of total accounts receivable, at December 31, 2017. No other customer accounted for 10% or more of the total accounts receivable at March 31, 2018 or December 31, 2017. Significant Supplier We have OEM Distribution Agreements (“ODAs”) with Microsoft Corporation (“Microsoft”) which enable us to sell Microsoft Windows Embedded operating systems on a non-exclusive basis to our customers in the United States, Canada, Argentina, Brazil, Chile, Columbia, Mexico, Peru, Puerto Rico, the Caribbean (excluding Cuba), the European Union, the European Free Trade Association, Turkey and Africa, which expire on June 30, 2018. We also have ODAs with Microsoft which allow us to sell Microsoft Windows Mobile operating systems in the Americas (excluding Cuba), Japan, Taiwan, Europe, the Middle East, and Africa, which also expire on June 30, 2018. Software sales under these agreements constitute a significant portion of our software revenue and total revenue. These agreements are typically renewed bi-annually, annually or semi-annually; however, there is no automatic renewal provision in any of these agreements. Further, these agreements can be terminated unilaterally by Microsoft at any time. Microsoft currently offers a rebate program to sell Microsoft Windows Embedded operating systems pursuant to which we earn money for achieving certain predefined objectives. In accordance with Microsoft rebate program rules, we allocate 30% of rebate values to reduce cost of sales, with the remaining 70% to offset qualified marketing expenses in the period the expenditures are incurred. Under this rebate program, we recorded rebate credits as follows (in thousands): Three Months Ended March 31, 2018 2017 Reductions to cost of revenue $ 260 $ 110 Reductions to marketing expense $ 266 $ 155 There was a balance of approximately $607,000 in outstanding rebate credits for which we qualified at March 31, 2018, which will be accounted for as a reduction in marketing expense in the period in which qualified program expenditures are made. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of BSQUARE Corporation (“BSQUARE”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting and include the accounts of BSQUARE and our wholly owned subsidiaries. In the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), prior period software revenue has been separately presented as third-party software and proprietary software to conform to current period presentation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the unaudited condensed consolidated financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly our financial position as of March 31, 2018, and our operating results and cash flows for the three months ended March 31, 2018 and 2017. The accompanying financial information as of December 31, 2017 is derived from audited financial statements. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements and bonus accruals. Actual results may differ from these estimates. Interim results are not necessarily indicative of results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017. All intercompany balances have been eliminated. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases” (“ASU 2016-02”), to make leasing activities more transparent and comparable, requiring most leases to be recognized by lessees on their balance sheets as right-of-use assets, along with corresponding lease liabilities. ASU 2016-02 is effective for annual periods beginning after December 31, 2018 and interim periods within that year, with early adoption permitted. We are currently evaluating the impact this ASU may have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), |
Income (Loss) Per Share | Income (Loss) Per Share We compute basic income (loss) per share using the weighted average number of common shares outstanding during the period, and exclude any dilutive effects of common stock equivalent shares, such as options and restricted stock units (“RSUs”). We consider RSUs as outstanding and include them in the computation of basic income (loss) per share only when vested. We compute diluted income (loss) per share using the weighted average number of common shares outstanding and common stock equivalent shares outstanding during the period using the treasury stock method. We exclude common stock equivalent shares from the computation if their effect is anti-dilutive. The following potentially dilutive shares were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended March 31, 2018 2017 Stock options 1,528,907 1,160,015 Restricted stock units 64,192 - |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Potentially Dilutive Shares Excluded From Calculation of Diluted Net Income (Loss) Per Share | The following potentially dilutive shares were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended March 31, 2018 2017 Stock options 1,528,907 1,160,015 Restricted stock units 64,192 - |
Revenue Recognition(Tables)
Revenue Recognition(Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenue | The following table provides information about disaggregated revenue by primary geographical market and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands): Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Third-Party Software Proprietary Software Professional Engineering Service Total Third-Party Software Proprietary Software Professional Engineering Service Total Primary geographical markets: North America $ 15,119 $ 1,683 $ 2,487 $ 19,289 $ 16,296 $ 2,645 $ 2,829 $ 21,770 Europe 593 100 246 939 424 — 398 822 Asia 352 12 86 450 77 9 163 249 Total $ 16,064 $ 1,795 $ 2,819 $ 20,678 $ 16,797 $ 2,654 $ 3,390 $ 22,841 |
Schedule of Significant Changes in Contract Assets and Liabilities | Significant changes in the contract assets and the contract liabilities balances during the periods are as follows (in thousands): Three Months Ended March 31, 2018 Contract Assets Contract Liabilities (1) Revenue recognized that was included in the contract liability (deferred revenue) at December 31, 2017 $ — $ 2,214 Transferred to receivables from contract assets recognized at December 31, 2017 238 — (1) |
Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The estimated revenues do not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that are unexercised as of March 31, 2018 (in thousands): Remainder of 2018 2019 2020 2021 Third-party software $ 89 $ 50 $ 14 $ — Proprietary software 1,138 1,133 820 114 Professional engineering services 230 — — — |
Cash, Cash Equivalents and In19
Cash, Cash Equivalents and Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Short-Term Investments | Cash, cash equivalents and short-term investments consisted of the following (in thousands): March 31, 2018 December 31, 2017 Cash $ 7,901 $ 6,340 Cash equivalents (see detail in Note 4) 2,791 6,519 Total cash and cash equivalents 10,692 12,859 Short-term investments (see detail in Note 4) 10,743 11,895 Total cash, cash equivalents and short-term investments $ 21,435 $ 24,754 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 are summarized below (in thousands): March 31, 2018 December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 297 $ — $ 297 $ 2,274 $ — $ 2,274 Corporate commercial paper — 2,494 2,494 — 3,245 3,245 Corporate debt — — — — 1,000 1,000 Total cash equivalents 297 2,494 2,791 2,274 4,245 6,519 Short-term investments: Corporate commercial paper — 4,970 4,970 — 5,480 5,480 Corporate debt — 5,773 5,773 — 6,415 6,415 Total short-term investments — 10,743 10,743 — 11,895 11,895 Total assets measured at fair value $ 297 $ 13,237 $ 13,534 $ 2,274 $ 16,140 $ 18,414 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets Relate to Customer Relationships | Information regarding our intangible assets is as follows (in thousands): March 31, 2018 December 31, 2017 Gross Carrying Gross Carrying Amount Amortization Value Amount Amortization Value Customer relationships: $ 1,275 $ (934 ) $ 341 $ 1,275 $ (910 ) $ 365 |
Expected Amortization Expense for Future Period | Amortization in future periods is expected to be as follows (in thousands): Remainder of 2018 $ 74 2019 98 2020 98 2021 71 Total $ 341 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Fair Values of Stock Option Grants Estimated with Weighted Average Assumptions | The fair values of our stock option grants were estimated with the following weighted average assumptions: Three Months Ended March 31, 2018 2017 Dividend yield 0 % 0 % Expected life 5.4 years 3.3 years Expected volatility 54 % 53 % Risk-free interest rate 2.4 % 1.7 % |
Stock-Based Compensation Expense | The impact on our results of operations from stock-based compensation expense was as follows (in thousands, except per share amounts): Three Months Ended March 31, 2018 2017 Cost of revenue — professional engineering service $ 11 $ 65 Selling, general and administrative 264 284 Research and development 56 50 Total stock-based compensation expense $ 331 $ 399 Per diluted share $ 0.03 $ 0.03 |
Summary of Stock Option Activity | The following table summarizes stock option activity under the Plans: Weighted Average Remaining Weighted Average Contractual Life Aggregate Number of Shares Exercise Price (in years) Intrinsic Value Balance at December 31, 2017 1,912,161 $ 4.88 7.61 $ 781,735 Granted 170,643 4.16 Exercised (680 ) 3.62 Forfeited (11,100 ) 5.28 Expired (13,556 ) 5.78 Balance at March 31, 2018 2,057,468 $ 4.81 7.59 $ 559,221 Vested and expected to vest at March 31, 2018 1,924,493 $ 4.80 7.49 $ 554,722 Exercisable at March 31, 2018 1,127,389 $ 4.55 6.54 $ 534,925 |
Summary of Certain Additional Information about Stock Options | The following table summarizes certain information about stock options: Three Months Ended March 31, 2018 2017 Weighted average grant-date fair value for options granted during the period $ 2.09 $ 3.01 Options in-the-money 737,632 1,224,182 Aggregate intrinsic value of options exercised during the period $ 275 $ 40,421 |
Summary of Restricted Stock Unit Activity | The following table summarizes RSU activity under the Plans: Number of Weighted Average Shares Award Price Unvested at December 31, 2017 116,968 $ 5.33 Granted 10,000 4.24 Vested (24,856 ) 5.20 Forfeited — — Unvested at March 31, 2018 102,112 $ 5.25 Expected to vest after March 31, 2018 90,343 $ 5.26 |
Summary of Shares of Common Stock Reserved for Future Issuance under Plans | The following table summarizes our shares of common stock reserved for future issuance under the Plans as of March 31, 2018: March 31, 2018 Stock options outstanding 2,057,468 Restricted stock units outstanding 102,112 Stock options available for future grant 1,033,269 Common stock reserved for future issuance 3,192,849 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Operating Lease Commitments | Future operating lease commitments are as follows by calendar year (in thousands): March 31, 2018 Remainder of 2018 $ 891 2019 1,132 2020 531 2021 16 Total commitments $ 2,570 |
Information about Geographic 24
Information about Geographic Areas and Operating Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Profit and Loss Information of Segments | The following table sets forth profit and loss information about our segments (in thousands): Three Months Ended March 31, 2018 2017 Third-party software: Revenue $ 16,064 $ 16,797 Cost of revenue 13,354 14,082 Gross profit 2,710 2,715 Proprietary software: Revenue 1,795 2,654 Cost of revenue 41 32 Gross profit 1,754 2,622 Professional Engineering Service: Revenue 2,819 3,390 Cost of revenue 2,083 2,474 Gross profit 736 916 Total gross profit 5,200 6,253 Operating expenses 7,678 6,212 Other income, net 44 55 Income tax benefit — 106 Net income (loss) $ (2,434 ) $ 202 |
Revenue and Long-Lived Assets by Geographic Area | Revenue by geography is based on the sales region of the customer. The following tables set forth revenue and long-lived assets by geographic area (in thousands): Three Months Ended March 31, 2018 2017 Total revenue: North America $ 19,289 $ 21,770 Asia 450 249 Europe 939 822 Total revenue $ 20,678 $ 22,841 March 31, 2018 December 31, 2017 Long-lived assets: North America $ 986 $ 991 Asia 94 76 Europe 4,110 4,114 Total long-lived assets $ 5,190 $ 5,181 |
Significant Risk Concentratio25
Significant Risk Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Risks And Uncertainties [Abstract] | |
Summary of Rebate Program Recorded Under Rebate Credits | Under this rebate program, we recorded rebate credits as follows (in thousands): Three Months Ended March 31, 2018 2017 Reductions to cost of revenue $ 260 $ 110 Reductions to marketing expense $ 266 $ 155 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - Potentially Dilutive Shares Excluded From Calculation of Diluted Net Income (Loss) Per Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive shares excluded from calculation of diluted net income (loss) per share | 1,528,907 | 1,160,015 |
Restricted stock units [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive shares excluded from calculation of diluted net income (loss) per share | 64,192 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - Topic 606 [Member] - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2017 | |
Summary Of Accounting Policies [Line Items] | |||
Cumulative-effect adjustment to retained earnings | $ 404,000 | ||
Asset impairment charges related to contract assets | $ 0 | ||
Amortization of contract acquisition costs | 80,000 | $ 141,000 | |
Impairment loss in relation to costs capitalized | $ 0 | $ 0 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | $ 20,678 | $ 22,841 |
Software [Member] | Third Party Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 16,064 | 16,797 |
Software [Member] | Proprietary Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 1,795 | 2,654 |
Professional Engineering Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 2,819 | 3,390 |
North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 19,289 | 21,770 |
North America [Member] | Software [Member] | Third Party Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 15,119 | 16,296 |
North America [Member] | Software [Member] | Proprietary Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 1,683 | 2,645 |
North America [Member] | Professional Engineering Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 2,487 | 2,829 |
Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 939 | 822 |
Europe [Member] | Software [Member] | Third Party Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 593 | 424 |
Europe [Member] | Software [Member] | Proprietary Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 100 | |
Europe [Member] | Professional Engineering Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 246 | 398 |
Asia [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 450 | 249 |
Asia [Member] | Software [Member] | Third Party Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 352 | 77 |
Asia [Member] | Software [Member] | Proprietary Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 12 | 9 |
Asia [Member] | Professional Engineering Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | $ 86 | $ 163 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Significant Changes in Contract Assets and Liabilities (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Changes in the Contract Assets | |
Transferred to receivables from contract assets recognized at December 31, 2017 | $ 238 |
Changes in the Contract Liabilities | |
Revenue recognized that was included in the contract liability (deferred revenue) at December 31, 2017 | $ 2,214 |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
Software [Member] | Third Party Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | $ 89 |
Software [Member] | Third Party Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 50 |
Software [Member] | Third Party Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 14 |
Software [Member] | Proprietary Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 1,138 |
Software [Member] | Proprietary Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 1,133 |
Software [Member] | Proprietary Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 820 |
Software [Member] | Proprietary Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 114 |
Professional Engineering Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | $ 230 |
Cash, Cash Equivalents and In31
Cash, Cash Equivalents and Investments - Cash, Cash Equivalents and Short-Term Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalents [Abstract] | ||||
Cash | $ 7,901 | $ 6,340 | ||
Cash equivalents | 2,791 | 6,519 | ||
Total cash and cash equivalents | 10,692 | 12,859 | $ 9,704 | $ 14,312 |
Short-term investments | 10,743 | 11,895 | ||
Total cash, cash equivalents and short-term investments | $ 21,435 | $ 24,754 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Short-term investments: | ||
Total short-term investments | $ 10,743 | $ 11,895 |
Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 2,791 | 6,519 |
Short-term investments: | ||
Total short-term investments | 10,743 | 11,895 |
Total assets measured at fair value | 13,534 | 18,414 |
Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 2,494 | 3,245 |
Short-term investments: | ||
Total short-term investments | 4,970 | 5,480 |
Corporate debt [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,000 | |
Short-term investments: | ||
Total short-term investments | 5,773 | 6,415 |
Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 297 | 2,274 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 297 | 2,274 |
Short-term investments: | ||
Total assets measured at fair value | 297 | 2,274 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 297 | 2,274 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 2,494 | 4,245 |
Short-term investments: | ||
Total short-term investments | 10,743 | 11,895 |
Total assets measured at fair value | 13,237 | 16,140 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 2,494 | 3,245 |
Short-term investments: | ||
Total short-term investments | 4,970 | 5,480 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Corporate debt [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,000 | |
Short-term investments: | ||
Total short-term investments | $ 5,773 | $ 6,415 |
Goodwill and Intangible Asset33
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Change in carrying amount of goodwill | $ 0 | |
Amortization expense | $ 25,000 | $ 25,000 |
Goodwill and Intangible Asset34
Goodwill and Intangible Assets - Intangible Assets Relate to Customer Relationships (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Net Carrying Value | $ 341 | $ 365 |
TestQuest, Inc and BSQUARE EMEA, Ltd [Member] | Customer relationships [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,275 | 1,275 |
Accumulated Amortization | (934) | (910) |
Net Carrying Value | $ 341 | $ 365 |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets - Expected Amortization Expense for Future Period (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2018 | $ 74 | |
2,019 | 98 | |
2,020 | 98 | |
2,021 | 71 | |
Net Carrying Value | $ 341 | $ 365 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Detail) - Credit Agreement [Member] - USD ($) | Sep. 29, 2016 | Sep. 22, 2015 | Sep. 30, 2016 | Mar. 31, 2018 | Dec. 31, 2017 |
Line Of Credit Facility [Line Items] | |||||
Letter of credit, agreement amount | $ 250,000 | ||||
Unsecured Line of Credit Agreement [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Line of credit, interest rate description | The Credit Agreement shall bear interest at either (1) a rate per annum equal to 1.5% below the bank’s applicable prime rate or (2) 1.5% above the Bank’s applicable LIBOR rate, in each case as defined in the Credit Agreement. | ||||
Line of credit, final due date | Sep. 22, 2018 | ||||
Line of credit, amount outstanding | $ 0 | $ 0 | |||
Unsecured Line of Credit Agreement [Member] | Prime Rate [Member] | Minimum [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Line of credit, interest rate, basis spread on variable rate | 1.50% | ||||
Unsecured Line of Credit Agreement [Member] | LIBOR Rate [Member] | Maximum [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Line of credit, interest rate, basis spread on variable rate | 1.50% | ||||
Unsecured Line of Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Line of credit, term | 2 years | ||||
Line of credit, maximum borrowing capacity | $ 12,000,000 | $ 11,750,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Term of stock options granted | 10 years |
Vesting of options granted | 4 years |
Compensation cost related to stock options granted but not yet recognized, net of estimated forfeitures | $ 1,086,466 |
Amortization cost, weighted-average period | 1 year 6 months |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amortization cost, weighted-average period | 1 year 2 months 12 days |
Compensation cost related to restricted stock units granted but not yet recognized, net of estimated forfeitures | $ 192,522 |
Shareholders' Equity - Fair Val
Shareholders' Equity - Fair Values of Stock Option Grants Estimated with Weighted Average Assumptions (Detail) - Employee Stock Option [Member] | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected life | 5 years 4 months 24 days | 3 years 3 months 18 days |
Expected volatility | 54.00% | 53.00% |
Risk-free interest rate | 2.40% | 1.70% |
Shareholders' Equity - Stock-Ba
Shareholders' Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 331 | $ 399 |
Per diluted share | $ 0.03 | $ 0.03 |
Cost of revenue - professional engineering service [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 11 | $ 65 |
Selling, general and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 264 | 284 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 56 | $ 50 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||
Number of Shares, Beginning Balance | 1,912,161 | |
Granted, Number of Shares | 170,643 | |
Exercised, Number of Shares | (680) | |
Forfeited, Number of Shares | (11,100) | |
Expired, Number of Shares | (13,556) | |
Number of Shares, Ending Balance | 2,057,468 | 1,912,161 |
Vested and expected to vest, Number of Shares, Ending Balance | 1,924,493 | |
Exercisable, Number of Shares, Ending Balance | 1,127,389 | |
Weighted Average Exercise Price, Beginning Balance | $ 4.88 | |
Granted, Weighted Average Exercise Price | 4.16 | |
Exercised, Weighted Average Exercise Price | 3.62 | |
Forfeited, Weighted Average Exercise Price | 5.28 | |
Expired, Weighted Average Exercise Price | 5.78 | |
Weighted Average Exercise Price, Ending Balance | 4.81 | $ 4.88 |
Vested and expected to vest, Weighted Average Exercise Price, Ending Balance | 4.80 | |
Exercisable, Weighted Average Exercise Price, Ending Balance | $ 4.55 | |
Weighted Average Remaining Contractual Life (in years) | 7 years 7 months 2 days | 7 years 7 months 9 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 7 years 5 months 26 days | |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 6 years 6 months 14 days | |
Balance outstanding, Aggregate Intrinsic Value | $ 559,221 | $ 781,735 |
Vested and expected to vest, Aggregate Intrinsic Value | 554,722 | |
Exercisable, Aggregate Intrinsic Value | $ 534,925 |
Shareholders' Equity - Summar41
Shareholders' Equity - Summary of Certain Additional Information about Stock Options (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Weighted average grant-date fair value for options granted during the period | $ 2.09 | $ 3.01 |
Options in-the-money | 737,632 | 1,224,182 |
Aggregate intrinsic value of options exercised during the period | $ 275 | $ 40,421 |
Shareholders' Equity - Summar42
Shareholders' Equity - Summary of Restricted Stock Unit Activity (Detail) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Ending Balance | 102,112 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Beginning Balance | 116,968 |
Granted, Number of Shares | 10,000 |
Vested, Number of Shares | (24,856) |
Unvested, Number of Shares, Ending Balance | 102,112 |
Expected to vest, Number of Shares, Ending Balance | 90,343 |
Unvested, Weighted Average Award Price, Beginning Balance | $ / shares | $ 5.33 |
Granted, Weighted Average Award Price | $ / shares | 4.24 |
Vested, Weighted Average Award Price | $ / shares | 5.20 |
Unvested, Weighted Average Award Price, Ending Balance | $ / shares | 5.25 |
Expected to vest, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 5.26 |
Shareholders' Equity - Summar43
Shareholders' Equity - Summary of Shares of Common Stock Reserved for Future Issuance under Plans (Detail) - shares | Mar. 31, 2018 | Dec. 31, 2017 |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | ||
Stock options outstanding | 2,057,468 | 1,912,161 |
Restricted stock units outstanding | 102,112 | |
Stock options available for future grant | 1,033,269 | |
Common stock reserved for future issuance | 3,192,849 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | |
Aug. 31, 2013 | Mar. 31, 2018 | Mar. 31, 2017 | |
Other Commitments [Line Items] | |||
Operating leases, expiration year | 2,021 | ||
Rent expense | $ 264,000 | $ 260,000 | |
Bellevue [Member] | Washington [Member] | |||
Other Commitments [Line Items] | |||
Expiration date of operating lease | 2014-08 | ||
Extended expiration date of operating lease | 2020-05 |
Commitments and Contingencies45
Commitments and Contingencies - Future Operating Lease Commitments (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
Remainder of 2018 | $ 891 |
2,019 | 1,132 |
2,020 | 531 |
2,021 | 16 |
Total commitments | $ 2,570 |
Information about Geographic 46
Information about Geographic Areas and Operating Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 3 |
Number of operating segment | 3 |
Information about Geographic 47
Information about Geographic Areas and Operating Segments - Profit and Loss Information of Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 20,678 | $ 22,841 |
Cost of revenue | 15,478 | 16,588 |
Gross profit | 5,200 | 6,253 |
Operating expenses | 7,678 | 6,212 |
Other income, net | 44 | 55 |
Income tax benefit | 106 | |
Net income (loss) | (2,434) | 202 |
Third Party Software [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 16,064 | 16,797 |
Cost of revenue | 13,354 | 14,082 |
Gross profit | 2,710 | 2,715 |
Proprietary Software [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,795 | 2,654 |
Cost of revenue | 41 | 32 |
Gross profit | 1,754 | 2,622 |
Professional Engineering Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,819 | 3,390 |
Cost of revenue | 2,083 | 2,474 |
Gross profit | $ 736 | $ 916 |
Information about Geographic 48
Information about Geographic Areas and Operating Segments - Revenue and Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Total revenue: | |||
Total revenue | $ 20,678 | $ 22,841 | |
Long-lived assets: | |||
Total long-lived assets | 5,190 | $ 5,181 | |
North America [Member] | |||
Total revenue: | |||
Total revenue | 19,289 | 21,770 | |
Long-lived assets: | |||
Total long-lived assets | 986 | 991 | |
Asia [Member] | |||
Total revenue: | |||
Total revenue | 450 | 249 | |
Long-lived assets: | |||
Total long-lived assets | 94 | 76 | |
Europe [Member] | |||
Total revenue: | |||
Total revenue | 939 | $ 822 | |
Long-lived assets: | |||
Total long-lived assets | $ 4,110 | $ 4,114 |
Significant Risk Concentratio49
Significant Risk Concentrations - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||
Total revenue | $ 20,678,000 | $ 22,841,000 | |
Accounts receivable | $ 16,712,000 | $ 18,014,000 | |
Expiration date one of OEM Distribution agreements for embedded operating systems | Jun. 30, 2018 | ||
Expiration date of OEM Distribution agreements for mobile operating systems, non-EMEA | Jun. 30, 2018 | ||
Rebate credits outstanding | $ 607,000 | ||
Cost of revenue [Member] | |||
Concentration Risk [Line Items] | |||
Allocation of rebate values, percentage | 30.00% | ||
Reduction to marketing expense [Member] | |||
Concentration Risk [Line Items] | |||
Allocation of rebate values, percentage | 70.00% | ||
Honeywell International Inc and affiliated entities [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Total revenue | $ 2,600,000 | 3,300,000 | |
Honeywell International Inc and affiliated entities [Member] | Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | $ 9,100,000 | $ 8,700,000 | |
PACCAR Inc. and affiliated entities [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Total revenue | $ 3,000,000 | ||
Revenue [Member] | Honeywell International Inc and affiliated entities [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13.00% | 15.00% | |
Revenue [Member] | PACCAR Inc. and affiliated entities [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13.00% | ||
Accounts receivable [Member] | Honeywell International Inc and affiliated entities [Member] | Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 54.00% | 48.00% |
Significant Risk Concentratio50
Significant Risk Concentrations - Summary of Rebate Program Recorded Under Rebate Credits (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cost of revenue [Member] | ||
Concentration Risk [Line Items] | ||
Earnings under the rebate program | $ 260 | $ 110 |
Reduction to marketing expense [Member] | ||
Concentration Risk [Line Items] | ||
Earnings under the rebate program | $ 266 | $ 155 |