BSQUARE has announced that it has ended the manufacturing of its Power Handheld hardware device, eight months after announcing Vodafone would be selling this in Europe (read more). The company will continue to sell the enabling software included in the device to smart device makers as a complement to the consulting services and software that the company offers today.
"BSQUARE is exiting the business of manufacturing and marketing our own device," noted Brian Crowley, president and CEO of BSQUARE. "We will leave that business to Original Equipment Manufacturers and we will focus on what we do best. This decision also removes the friction that has existed wherein we were competing with some of our own OEM customers."
"There is clearly a market opportunity for converged devices, however, we sold a relatively small number of units and the ongoing investment didn't make sense at the expense of our core business," said Crowley. "Before reaching this decision, we performed a thorough exploration of strategic options and ultimately could not find a viable sale or spinout alternative." BSQUARE had previously announced that it was exploring strategic alternatives for the Power Handheld business unit.
BSQUARE will retain the intellectual property incorporated in the Power Handheld device as part of its increasing investment in proprietary software products. "In our development efforts on behalf of smart device makers and ourselves, BSQUARE has created valuable radio interface layer, user interface, power management and information management software that smart device makers have licensed or expressed an interest in licensing for integration into Microsoft Windows CE and Windows Mobile-based handheld devices. We are making focused investments in productizing these technologies," commented Crowley. "We are retaining all the capabilities necessary to help bring smart devices to market; we just won't be bringing the devices to market ourselves."
As a result of this action, the majority of the Power Handheld personnel were terminated with the remainder reassigned into product development initiatives or retained to provide ongoing support for the Power Handheld device. BSQUARE will continue to provide warranty support for devices previously sold.