Welcome!

News Feed Item

Smith Micro Software Reports 2014 First Quarter Financial Results

ALISO VIEJO, CA -- (Marketwired) -- 05/08/14 -- Smith Micro Software, Inc. (NASDAQ: SMSI), a leading provider of wireless and mobility solutions, today reported financial results for its first quarter ended March 31, 2014.

"Revenue for the first quarter was $8.4 million, down 29% sequentially, and 27% year-over-year. While we typically see a drop in revenue from the fourth quarter to the first quarter each year due to seasonality in our Productivity and Graphics business, this year's decline was more strongly felt since, as expected, the 19% customer in Q4 did not contribute any revenue to Q1," said William W. Smith Jr., President and CEO of Smith Micro Software.

"While we were hopeful that we could achieve profitability based on our previous restructure, a significant potential deal that didn't materialize and uncertainty regarding the timing of future revenues have resulted in the need for additional cost cutting measures. Therefore, we are taking immediate steps to further lower our cost structure by approximately $2.0 million per quarter. The Board has approved a restructuring plan that will streamline our organization and reduce overall headcount by approximately 20%. The plan will result in one-time severance and other special charges of approximately $1.6 to $2.0 million, which will be reported in our second quarter," Mr. Smith concluded.

Smith Micro Software reported revenue of $8.4 million for the first quarter ended March 31, 2014, compared to $11.6 million reported in the first quarter ended March 31, 2013.

First quarter gross profit on a GAAP and non-GAAP (which excludes stock compensation) basis was $6.0 million, compared to $9.2 million reported in the first quarter of 2013.

GAAP gross profit as a percentage of revenue was 71.4 percent for the first quarter of 2014, compared to 78.9 percent for the same quarter last year. Non-GAAP gross profit as a percentage of revenue was 71.4 percent for the first quarter of 2014, compared to 79.0 percent for the same quarter last year.

GAAP net loss for the first quarter of 2014 was $5.2 million, or a loss of $0.14 per share, compared to GAAP net loss of $6.2 million, or $0.17 per share, for the first quarter of 2013.

Non-GAAP net loss (which excludes stock compensation and non-cash tax expense) for the first quarter of 2014 was $2.7 million, or a loss of $0.07 per share, compared to a net loss of $3.1 million, or $0.08 per share, for the first quarter of 2013.

Total cash and cash equivalents and short-term investments at March 31, 2014 were $11.2 million.

Fully diluted weighted average common shares outstanding as of March 31, 2014 were 37.7 million, compared to 36.6 million fully diluted weighted average common shares outstanding as of March 31, 2013.

The Company uses a non-GAAP reconciliation of gross profit, loss before taxes, net loss and loss per share in the presentation of financial results in this press release. Management believes that this presentation may be more meaningful in analyzing the Company's income generation, since stock-based compensation and non-cash tax expense are excluded from the non-GAAP earnings calculation. Since the Company is in a loss position, the non-GAAP income tax benefit for the period ended March 31, 2014 was computed by using a tax rate of 38 percent using the Company's normalized combined U.S. federal, state and foreign statutory tax rates less various tax adjustments. This presentation may be considered more indicative of the Company's ongoing operational performance. The tables below present the differences between non-GAAP earnings and net loss on an absolute and per-share basis. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and the non-financial measures as reported by Smith Micro Software may not be comparable to similarly titled amounts reported by other companies.

Investor Conference Call:

Smith Micro Software will hold an investor conference call today to discuss the Company's first quarter 2014 results at 4:30 p.m. ET, May 8, 2014. To access the call, dial (877) 941-2332 and when prompted provide the pass code "SMSI." Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. In addition, the conference call will be available on the Smith Micro website in the Investor Relations section.

About Smith Micro Software, Inc.:

Smith Micro Software provides solutions that simplify, secure and enhance the mobile experience. Our portfolio includes a wide range of applications that manage broadband connectivity, data traffic, devices, voice and video communications over wireless networks. With 30 years of experience developing world-class client and server software, Smith Micro helps the leading mobile network operators, device manufacturers and enterprises increase efficiency and capitalize on the growth of mobile-connected consumers and workforces. For more information, visit smithmicro.com. (NASDAQ: SMSI)

Safe Harbor Statement:

This release contains forward-looking statements that involve risks and uncertainties, including without limitation, forward-looking statements relating to the company's financial prospects and other projections of its performance, the execution of our recently announced restructuring, our ability to halt the decline of our cash reserves in light of our continued losses, the existence of new market opportunities and interest in the company's products and solutions, and the company's ability to increase its revenue and regain profitability by capitalizing on these new market opportunities and interest and introducing new products and solutions. Among the important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are potential for disruption and loss of customers and business from the transfer of duties and responsibilities in our recently announced restructuring, the risk that we will continue to incur losses and not regain profitability, the risk that we may need to raise additional capital to fund our operations and such capital may not be available to us at commercially reasonable terms or at all, changes in demand for the company's products from its customers and their end-users, customer concentration given that the majority of our sales depend on a few large client relationships, including Sprint, new and changing technologies, customer acceptance and timing of deployment of those technologies, new and continuing adverse economic conditions, and the company's ability to compete effectively with other software companies. These and other factors discussed in the company's filings with the Securities and Exchange Commission, including its filings on Forms 10-K and 10-Q, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. The forward-looking statements contained in this release are made on the basis of the views and assumptions of management regarding future events and business performance as of the date of this release, and the company does not undertake any obligation to update these statements to reflect events or circumstances occurring after the date of this release.

Smith Micro and the Smith Micro logo are registered trademarks or trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective companies.


Smith Micro Software, Inc.
Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share amounts) -unaudited

                                             Stock                  Non-
                                GAAP     Compensation    Taxes      GAAP
                             ----------  ------------ ---------- ----------
Three Months Ended 3/31/14:
----------------------------
  Gross profit               $    6,029  $          5 $        - $    6,034
  Loss before provision for
   income taxes              $   (5,134) $        798 $        - $   (4,336)
  Net loss                   $   (5,167) $        798 $    1,681 $   (2,688)
  EPS-diluted                $    (0.14) $       0.02 $     0.05 $    (0.07)

Three Months Ended 3/31/13:
----------------------------
  Gross profit               $    9,158  $          5 $        - $    9,163
  Loss before provision for
   income taxes              $   (6,089) $      1,072 $        - $   (5,017)
  Net loss                   $   (6,158) $      1,072 $    1,975 $   (3,111)
  EPS-diluted                $    (0.17) $       0.03 $     0.06 $    (0.08)



Smith Micro Software, Inc.
Statements of Comprehensive Loss for the Three Months Ended March 31, 2014
 and 2013
(in thousands, except per share amounts) - unaudited

                                                   For the Three Months
                                                      Ended March 31,
                                                   2014            2013
                                               ------------    ------------
Revenues                                       $      8,449    $     11,602
Cost of revenues                                      2,420           2,444
                                               ------------    ------------
Gross profit                                          6,029           9,158

Operating expenses:
  Selling and marketing                               3,036           4,381
  Research and development                            4,249           5,936
  General and administrative                          3,878           4,942
                                               ------------    ------------
Total operating expenses                             11,163          15,259
                                               ------------    ------------
Operating loss                                       (5,134)         (6,101)
  Interest and other income, net                          -              12
                                               ------------    ------------
Loss before provision for income taxes               (5,134)         (6,089)
                                               ------------    ------------
Provision for income tax expense                         33              69
                                               ------------    ------------
Net loss                                       $     (5,167)   $     (6,158)
                                               ------------    ------------

Other comprehensive income, before tax:
  Unrealized holding gains on available-for-
   sale securities                                        -              18
  Income tax expense related to items of other
   comprehensive income                                   -               -
                                               ------------    ------------
  Other comprehensive income, net of tax                  -              18
                                               ------------    ------------
Comprehensive loss                             $     (5,167)   $     (6,140)
                                               ============    ============

Loss per share:
  Basic and diluted                            $      (0.14)   $      (0.17)

Weighted average shares outstanding:
  Basic and diluted                                  37,714          36,614



Smith Micro Software, Inc.
Consolidated Balance Sheets
(in thousands)
                                                 March 31,     December 31,
                                                   2014            2013
                                               ------------    ------------
                                                (unaudited)      (audited)
ASSETS
Current Assets:
Cash & cash equivalents                        $      8,620    $     11,763
Short term investments                                2,625           3,078
Accounts receivable, net                              7,042           7,563
Income tax receivable                                   699             699
Inventory, net                                          167             167
Prepaid and other assets                                734             871
Deferred tax asset                                      152             152
                                               ------------    ------------
  Total current assets                               20,039          24,293
Equipment & improvements, net                         6,161           7,023
Other assets                                            223             222
                                               ------------    ------------
TOTAL ASSETS                                   $     26,423    $     31,538
                                               ============    ============

LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
  Accounts payable                             $      1,623    $      1,632
  Accrued liabilities                                 7,160           7,734
  Deferred revenue                                      201             464
                                               ------------    ------------
    Total current liabilities                         8,984           9,830

Long-term liabilities                                 3,573           3,383
Deferred tax liability                                  154             154
                                               ------------    ------------
    Total non-current liabilities                     3,727           3,537

Stockholders' Equity:
  Common stock                                           39              37
  Additional paid in capital                        215,325         214,619
  Accumulated comprehensive deficit                (201,652)       (196,485)
                                               ------------    ------------
    Total stockholders' equity                       13,712          18,171
                                               ------------    ------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY       $     26,423    $     31,538
                                               ============    ============

AT THE COMPANY:
Suzanne Runald
Public Relations
949-362-5800
Email Contact

IR INQUIRIES:
Todd Kehrli or Jim Byers
MKR Group
323-468-2300
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are a leader in the market space called network visibility solutions - it enables monitoring tools and Big Data analysis to access the data and be able to see the performance," explained Shay Morag, VP of Sales and Marketing at Niagara Networks, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for s...
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...