Click here to close now.




















Welcome!

News Feed Item

Smith Micro Software Reports 2014 Second Quarter Financial Results

ALISO VIEJO, CA -- (Marketwired) -- 07/30/14 -- Smith Micro Software, Inc. ("Smith Micro Software") (NASDAQ: SMSI), a leading provider of wireless and mobility solutions, today reported financial results for its second quarter ended June 30, 2014.

"Revenues for the second quarter were $8.5 million, up slightly sequentially from the first quarter, but down 19 percent year-over-year. While we saw an increase in our CommSuite revenues during the quarter, it did not offset decreases in our legacy connection manager products and the seasonal drop-off of our Productivity & Graphics products. We expect revenues to increase in the third quarter based on new orders and continued increases in CommSuite revenue driven by new features and increased advertising revenue," said William W. Smith Jr., President and CEO of Smith Micro Software.

"As we stated in our last earnings release, we took a one-time restructuring charge this quarter of $2.4 million, of which $1.3 million was non-cash stock-based compensation expense. This reduced our overall cost structure by approximately $2.0 million per quarter. We should see a full quarter's benefit from these actions in the third quarter. With this lower cost structure and projected increase in revenues, we should significantly reduce our cash burn and get close to cash neutral in the third quarter, with the goal to return to profitability by the fourth quarter," Mr. Smith concluded.

Smith Micro Software reported revenues of $8.5 million for the second quarter ended June 30, 2014, compared to $10.5 million reported in the second quarter ended June 30, 2013.

Second quarter 2014 gross profit on both a GAAP and non-GAAP basis (which excludes stock compensation) was $6.1 million, compared to $8.1 million reported in the second quarter of 2013.

GAAP gross profit as a percentage of revenue was 71.3 percent for the second quarter of 2014, compared to 77.1 percent for the second quarter of 2013. Non-GAAP gross profit as a percentage of revenue was 71.3 percent for the second quarter of 2014, compared to 77.2 percent for the same quarter last year.

GAAP net loss for the second quarter of 2014 was $5.7 million, or $0.15 loss per diluted share, compared to a GAAP net loss of $7.2 million, or $0.19 loss per diluted share, for the second quarter of 2013.

Non-GAAP net loss (which excludes stock-based compensation and non-cash tax expense) for the second quarter of 2014 was $2.4 million, or $0.06 loss per diluted share, compared to a non-GAAP net loss of $3.8 million, or $0.10 loss per diluted share, for the second quarter of 2013. Excluding the restructuring charge, the non-GAAP net loss for the second quarter of 2014 would have been $1.6 million, or $0.04 loss per diluted share.

For the six months ended June 30, 2014, the Company reported revenues of $17.0 million, compared to $22.1 million for the six months ended June 30, 2013.

GAAP gross profit was $12.1 million for the six months ended June 30, 2014, compared to $17.2 million for the six months ended June 30, 2013. Non-GAAP gross profit (which excludes stock-based compensation) was $12.1 million for the six months ended June 30, 2014, compared to $17.3 million for the same period last year.

GAAP gross profit as a percentage of revenues was 71.3 percent for the six months ended June 30, 2014, compared to 78.1 percent for the same period last year. Non-GAAP gross profit as a percentage of revenues was 71.4 percent for the six months ended June 30, 2014, compared to 78.1 percent for same period last year.

GAAP net loss for the six months ended June 30, 2014 was $10.9 million, or a loss of $0.28 per diluted share, compared to a GAAP net loss for the six months ended June 30, 2013 of $13.4 million, or $0.36 loss per diluted share.

Non-GAAP net loss for the six months ended June 30, 2014 was $5.0 million, or a loss of $0.13 per diluted share, compared to a non-GAAP net loss of $6.9 million, or $0.19 loss per diluted share, for the six months ended June 30, 2013. Excluding the restructuring charge, the non-GAAP net loss for the six months ended June 30, 2014 would have been $4.3 million, or $0.11 loss per diluted share.

Total cash and cash equivalents and short-term investments at June 30, 2014 were $6.3 million.

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 our income generation, since stock-based compensation and non-cash tax expense are excluded from the non-GAAP earnings calculation. Since we are in a loss position, the non-GAAP income tax benefit for the period ended June 30, 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 our 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 second quarter 2014 results at 4:30 p.m. ET, July 30, 2014. To access the call, dial (888) 503-8175 and when prompted provide the pass code "Smith Micro." 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. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Smith Micro and any other company.



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 6/30/14:
  Gross profit                 $     6,077  $          3 $       - $  6,080
  Loss before provision for
   income taxes                $    (5,683) $      1,883 $       - $ (3,800)
  Net loss                     $    (5,695) $      1,883 $   1,456 $ (2,356)
  EPS-diluted                  $     (0.15) $       0.05 $    0.04 $  (0.06)

Three Months Ended 6/30/13:
  Gross profit                 $     8,083  $          6 $       - $  8,089
  Loss before provision for
   income taxes                $    (7,240) $      1,102 $       - $ (6,138)
  Net loss                     $    (7,244) $      1,102 $   2,336 $ (3,806)
  EPS-diluted                  $     (0.19) $       0.03 $    0.06 $  (0.10)

Six Months Ended 6/30/14:
  Gross profit                 $    12,106  $          8 $       - $ 12,114
  Loss before provision for
   income taxes                $   (10,817) $      2,681 $       - $ (8,136)
  Net loss                     $   (10,862) $      2,681 $   3,137 $ (5,044)
  EPS-diluted                  $     (0.28) $       0.07 $    0.08 $  (0.13)

Six Months Ended 6/30/13:
  Gross profit                 $    17,241  $         11 $       - $ 17,252
  Loss before provision for
   income taxes                $   (13,329) $      2,174 $       - $(11,155)
  Net loss                     $   (13,402) $      2,174 $   4,311 $ (6,917)
  EPS-diluted                  $     (0.36) $       0.06 $    0.11 $  (0.19)


Smith Micro Software, Inc.
Statements of Comprehensive Loss for the Three Months and Six Months Ended
 June 30, 2014 and 2013
(in thousands, except per share amounts) - unaudited

                                 For the Three Months   For the Six Months
                                    Ended June 30,        Ended June 30,
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------
Revenues                         $   8,528  $  10,484  $  16,977  $  22,086
Cost of revenues                     2,451      2,401      4,871      4,845
                                 ---------  ---------  ---------  ---------
Gross profit                         6,077      8,083     12,106     17,241

Operating expenses:
  Selling and marketing              2,296      4,569      5,332      8,950
  Research and development           3,609      5,900      7,858     11,836
  General and administrative         3,418      4,862      7,296      9,804
  Restructuring expense              2,435          -      2,435          -
                                 ---------  ---------  ---------  ---------
Total operating expenses            11,758     15,331     22,921     30,590
                                 ---------  ---------  ---------  ---------
Operating loss                      (5,681)    (7,248)   (10,815)   (13,349)
Interest and other income
 (expense), net                         (2)         8         (2)        20
                                 ---------  ---------  ---------  ---------
Loss before provision for income
 taxes                              (5,683)    (7,240)   (10,817)   (13,329)
                                 ---------  ---------  ---------  ---------
Provision for income tax expense        12          4         45         73
                                 ---------  ---------  ---------  ---------
Net loss                         $  (5,695) $  (7,244) $ (10,862) $ (13,402)
                                 ---------  ---------  ---------  ---------

Other comprehensive income
 (loss), before tax:
  Unrealized holding gains
   (losses) on available-for-
   sale securities                       1        (17)         1          1
  Income tax expense related to
   items of othercomprehensive
   income                                -          -          -          -
                                 ---------  ---------  ---------  ---------
  Other comprehensive income
   (loss), net of tax                    1        (17)         1          1
                                 ---------  ---------  ---------  ---------
Comprehensive loss               $  (5,694) $  (7,261) $ (10,861) $ (13,401)
                                 =========  =========  =========  =========

Loss per share:
  Basic and diluted              $   (0.15) $   (0.19) $   (0.28) $   (0.36)

Weighted average shares
 outstanding:
  Basic and diluted                 38,518     37,247     38,118     36,932


Smith Micro Software, Inc.
Consolidated Balance Sheets
(in thousands)
                                                June 30,      December 31,
                                                  2014            2013
                                             --------------  --------------
                                               (unaudited)      (audited)
ASSETS
Current Assets:
Cash & cash equivalents                      $        5,036  $       11,763
Short term investments                                1,220           3,078
Accounts receivable, net                              7,389           7,563
Income tax receivable                                   702             699
Inventory, net                                          169             167
Prepaid and other assets                              1,438             871
Deferred tax asset                                      152             152
                                             --------------  --------------
  Total current assets                               16,106          24,293
Equipment & improvements, net                         5,373           7,023
Other assets                                            205             222
                                             --------------  --------------
TOTAL ASSETS                                 $       21,684  $       31,538
                                             ==============  ==============

LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
  Accounts payable                           $        1,378  $        1,632
  Accrued liabilities                                 6,722           7,734
  Deferred revenue                                      119             464
                                             --------------  --------------
    Total current liabilities                         8,219           9,830

Long-term liabilities                                 3,701           3,383
Deferred tax liability                                  154             154
                                             --------------  --------------
    Total non-current liabilities                     3,855           3,537

Stockholders' Equity:
  Common stock                                           38              37
  Additional paid in capital                        216,918         214,619
  Accumulated comprehensive deficit                (207,346)       (196,485)
                                             --------------  --------------
    Total stockholders' equity                        9,610          18,171
                                             --------------  --------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY     $       21,684  $       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
"ProfitBricks was founded in 2010 and we are the painless cloud - and we are also the Infrastructure as a Service 2.0 company," noted Achim Weiss, Chief Executive Officer and Co-Founder of ProfitBricks, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.