Exhibit 99.1

BSQUARE Announces Prelim Results for Fourth Quarter and Full Year 2010

Quarterly Revenue Up 82% to a record $27.6 Million

Full-Year Revenue Up 50% to a record $96.8 Million

BELLEVUE, Wash, March 3, 2011 – BSQUARE Corporation (Nasdaq: BSQR) today announced preliminary financial results for the fourth quarter and full year ended December 31, 2010. Total revenue for the quarter was a record $27.6 million, up 82% year-over-year, while total revenue for the 12 months was a record $96.8 million, up 50%. Net income for the quarter was $2.1 million, or $0.19 per diluted share, up 168% year-over-year, while net income for the full year was $3.5 million, or $0.32 per diluted share, up 231%. The current quarter benefited from a large TestQuest sale in the amount of $723,000, or $0.07 per share. Details on the Company’s preliminary financial results are as follows (in 000’s except per share amounts):

Notes:

Cash and Investments EoQ includes both short and long-term amounts (long-term at 12/31/10 = $1.0 million).

EBITDAS = Earnings before interest, taxes, depreciation, amortization and stock compensation expense and is a non-GAAP measurement (reconciliation provided after financial statement tables).

CEO Commentary on Business and Financial Results

Brian Crowley, chief executive officer of BSQUARE, commented on the current quarter results and business activity, “This was a terrific quarter and a great way to end the year. We produced a record top line, with strong contributions from each of our revenue streams, and made good progress in a number of areas in our business. We also demonstrated leverage in our business model, growing total revenue 82% for the quarter and 50% for the year while only growing operating expenses 2% for the quarter and holding costs flat for the full-year, leading to a substantial increase in overall profitability.”

Commentary on Preliminary Quarterly Financial Results

Outlook

The Company currently has the following expectations for Q1 compared to the current quarter:

Mr. Crowley continued, “I want to thank all our employees for their dedication and hard work that enabled us to produce these results. In 2011, we are keenly focused on continuing our momentum and executing on our vision of becoming the leading software supplier to makers of smart, connected devices.”

Preliminary Results

All financial results contained in this press release are preliminary. Typically, the Company would file its Form 10-K immediately following this earnings release. The 2010 Form 10-K filing is expected to be delayed, but not beyond the filing deadline, as a result of dialog with the Securities and Exchange Commission stemming from the Commission’s normal, periodic review of the Company’s 2009 Form 10-K filing. While the Company does not currently expect the Commission’s review to impact the financial results contained in this release, subsequent events could arise between the date of this earnings release and the date of our filing which may impact the financial results contained herein and those discussed on our conference call. Further, the Company is examining its accounting for income taxes, particularly the 100 percent valuation allowance currently provided for relative to its deferred tax assets in light of the Company’s profitability. Any modifications to income taxes would impact net income and earnings per share contained in this earnings release and discussed on our conference call but not impact the EBITDAS and EBITDAS per share amounts.

Conference Call

Management will host a conference call today, March 3, 2011, at 5 p.m. Eastern Time (2 p.m. Pacific Time). To access the call, dial 877-941-4774, or 480-629-9760 for international callers, and reference “BSQUARE Corporation Fourth Quarter 2010 Earnings Conference Call.” A replay will be available for one week following the call by dialing 877-870-5176 or 858-384-5517 for international callers; reference pin number 4403324. A live and replay webcast of the call will be available at www.bsquare.com in the investor relations section.

About BSQUARE

BSQUARE is an industry leader with a proven track record in providing production-ready software products and engineering services that enable embedded solutions and smart devices. For more information, visit www.bsquare.com.

BSQUARE is a registered trademark of BSQUARE Corporation. All other product and company names herein may be trademarks of their respective owners.

This release and the content of the above referenced conference call, contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements relating to: our projected financial results; revenue, profit, cash and investment forecasts; future and potential sales or projects; our expectations related to initiatives with Texas Instruments and Qualcomm and our plans for general expansion of our proprietary products; expectations for our Handset Certification Platform and other TestQuest products; expanding our sales channel in Europe and Asia and adding additional engineering services in Taiwan and China; growth in our Application and User Interface development practices and work on Android, Windows 7, and other platforms; expectations with regard to expanding territories for our third-party license sales and adding additional third-party products to our offerings; and, our expectations with regard to future sales and opportunities of Microsoft and other third-party products. All of the statements contained herein 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: whether we are able to maintain our existing favorable relationships with Microsoft Corporation and other strategic partners and customers; whether our customers choose to use products from Microsoft, Texas Instruments, Qualcomm, Adobe and other manufacturers or suppliers that we sell or have partnered with; risks, uncertainties and changes in our or our customers’ financial condition; our ability to execute our product strategies for the Handset Certification Platform, other TestQuest products, and our overall proprietary products strategy; our sales executives’ ability to execute our initiatives; changes in our approach to pricing and selling services engagements; our initiatives related to the Application and User Interface development and Android operating system and mobile device markets; intellectual property risks; risks associated with our investment in and rapid expansion of our international operations; and, risks associated with our ability to expand our systems and overall capacities as required to sustain the growth in our business. Therefore, all forward-looking statements should be considered in light of various important factors including, but not limited to the risks and uncertainties listed above. The Company makes no commitment to revise or 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 for other important risk factors that could cause actual results to differ materially from those indicated in any forward-looking statements.

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BSQUARE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts) (2010 amounts are preliminary and unaudited)

BSQUARE CORPORATION

NON-GAAP INFORMATION AND RECONCILIATION TO COMPARABLE GAAP FINANCIAL MEASURES

(In thousands, except per share amounts) (Preliminary and unaudited)