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
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
Everyone talks about continuous integration and continuous delivery but those are just two ends of the pipeline. In the middle of DevOps is continuous testing (CT), and many organizations are struggling to implement continuous testing effectively. After all, without continuous testing there is no delivery. And Lab-As-A-Service (LaaS) enhances the CT with dynamic on-demand self-serve test topologies. CT together with LAAS make a powerful combination that perfectly serves complex software developm...