Brian T. Crowley, President and Chief Executive Officer of BSQUARE Corporation (BSQR) Interviews with the Wall Street Transcript

Wall Street Transcript

67 WALL STREET, New York - January 24, 2013 - The Wall Street Transcript has just published its Wireless Communications & Telecom Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Global Wireless Spectrum Allocation - Telco Dividend Yields - Smartphone Operating Systems - Mobile Trends in Emerging Markets

Companies include: BSQUARE Corp. (BSQR)

In the following excerpt from the Wireless Communications & Telecom Report, the CEO of BSQUARE discusses the outlook for his company for investors:

TWST: Do you anticipate that Microsoft will remain your primary focus in the market?

Mr. Crowley: Yes, I think that Microsoft will remain our primary footprint. We have made a big investment around their Windows 8 and Windows Phone 8 launches. We think that there is quite a bit of opportunity there. There's a lot of press out there today saying that Windows 8 is not doing very well, but you have to remember that for us, we are not into the desktop consumer market. We sell to companies that are making devices. The markets that we typically sell to are companies that need industrial devices. These are things like that handheld device the Federal Express driver carries when he comes to your door and he scans your package. That device is something that we probably have software in and we may have delivered some services to that company, because those devices are all based upon Microsoft operating system.

We do a lot of work in the automotive space. We work with Ford, we work with Chrysler, we work with a lot of their tier-I suppliers. We do a lot of work in the display, kiosk, vending retail space as well. A lot of those devices run Microsoft software, and their back ends are based upon a Microsoft back end, so it is a really nice step for those OEMs and their customers to have an integrated back end, and we try to play up and down that value chain.

While there is a big market for Android, and Android certainly is exploding, there are also a lot of companies out there, including a lot of low-price competition from India and China and other places that cater to that market, and that makes it difficult for us, given our Microsoft heritage to really get in and expand into those ecosystems. We do in certain verticals. We've done plenty of Android devices, for example, but our real expertise and the real feature for what we're trying to drive is, is in the Microsoft ecosystem.

TWST: What makes you decide to introduce a new product? What drives that product development?

Mr. Crowley: A lot of it just comes from the flow of our business. In a typical calendar quarter, we would normally do service projects for somewhere around 60 to 70 different customers, 60 to 70 different projects. When you are doing that much work, you are seeing a wide range of devices and applications, you are talking to a lot of customers about what their needs are. That gives you a pretty good feel for where the holes are out there in the technology space. When we start having our customers come back and ask us over and over again about, "Hey, do you have support for this?" we start to look at introducing a product to fit that.

For example, our HTML5 rendering engine came about because we had many customers who wanted to build a user interface using HTML5 technologies, because it has become a new standard out there, but Microsoft didn't have an offering. After getting asked the fourth or fifth time, we start to think, maybe I can fill that hole, which is what we did with our product.

TWST: Are you seeing new opportunities with Windows 8?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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