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
"Our strategy is to focus on the hyperscale providers - AWS, Azure, and Google. Over the last year we saw that a lot of developers need to learn how to do their job in the cloud and we see this DevOps movement that we are catering to with our content," stated Alessandro Fasan, Head of Global Sales at Cloud Academy, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, discussed key challenges and solutions to powering a ride sharing and/or multimodal model in the age ...
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.
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
"I will be talking about ChatOps and ChatOps as a way to solve some problems in the DevOps space," explained Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
In his session at @ThingsExpo, Dr. Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, presented the findings of a series of six detailed case studies of how large corporations are implementing IoT. The session explored how IoT has improved their economic performance, had major impacts on business models and resulted in impressive ROIs. The companies covered span manufacturing and services firms. He also explored servicification, how manufacturing firms shift from se...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...