SOURCE: Smith Micro Software, Inc.

Smith Micro Software, Inc.

May 01, 2013 16:05 ET

Smith Micro Software Reports 2013 First Quarter Financial Results

ALISO VIEJO, CA--(Marketwired - May 1, 2013) - 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, 2013.

"Our first quarter revenues of $11.6 million were up 14.7 percent from the same period last year primarily due to the deployment of our NetWise Director product and continued growth in our CommSuite (Visual Voicemail and Voice-to-Text) solutions," said William W. Smith Jr., President and CEO of Smith Micro Software. "First quarter non-GAAP loss per share of $0.08 was nearly cut in half from last year's $0.15 non-GAAP loss per share due to higher revenues and last year's cost restructuring." 

Smith Micro reported revenue of $11.6 million for the first quarter ended March 31, 2013, compared to $10.1 million reported in the first quarter ended March 31, 2012.

First quarter gross profit on a GAAP and non-GAAP (which excludes stock compensation) basis was $9.2 million, compared to $7.9 million reported in the first quarter of 2012. 

GAAP gross profit as a percentage of revenue was 78.9 percent for the first quarter of 2013, compared to 78.3 percent for the same quarter last year. Non-GAAP gross profit as a percentage of revenue was 79.0 percent for the first quarter of 2013, compared to 78.3 percent for the same quarter last year primarily due to our increased revenues. 

GAAP net loss for the first quarter of 2013 was $6.2 million, or a loss of $0.17 per share, compared to GAAP net loss of $9.7 million, or $0.27 per share, for the first quarter of 2012.

Non-GAAP net loss (which excludes stock compensation and non-cash tax expense) for the first quarter of 2013 was $3.1 million, or a loss of $0.08 per share, compared to a net loss of $5.3 million, or $0.15 per share, for the first quarter of 2012.

Total cash and cash equivalents and short-term investments at March 31, 2013 were $28.3 million.

Fully diluted weighted average common shares outstanding as of March 31, 2013 were 36.6 million compared to 35.6 million fully diluted weighted average common shares outstanding as of March 31, 2012.

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 March 31, 2013 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 first quarter 2013 results at 4:30 p.m. ET, May 1, 2013. To access the call, dial (877) 941-9205 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 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 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, NetWise, CommSuite 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 3/31/13:                            
  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 )
                             
Three Months Ended 3/31/12:                            
  Gross profit   $ 7,919     $ 4   $ -   $ 7,923  
  Loss before provision for income taxes   $ (9,592 )   $ 1,141   $ -   $ (8,451 )
  Net loss   $ (9,682 )   $ 1,141   $ 3,276   $ (5,265 )
  EPS-diluted   $ (0.27 )   $ 0.03   $ 0.09   $ (0.15 )
                             
                             
   
   
Smith Micro Software, Inc.  
Statements of Comprehensive Loss for the Three Months Ended March 31, 2013 and 2012  
(in thousands, except per share amounts) - unaudited  
             
    For the Three Months 
Ended March 31,
 
   
    2013     2012  
Revenues   $ 11,602     $ 10,114  
Cost of revenues     2,444       2,195  
Gross profit     9,158       7,919  
                 
Operating expenses:                
  Selling and marketing     4,381       4,592  
  Research and development     5,936       7,104  
  General and administrative     4,942       5,504  
  Restructuring expenses     -       334  
Total operating expenses     15,259       17,534  
Operating loss     (6,101 )     (9,615 )
  Interest and other income, net     12       23  
Loss before provision for income taxes     (6,089 )     (9,592 )
Provision for income tax expense     69       90  
Net loss   $ (6,158 )   $ (9,682 )
                 
Other comprehensive income, before tax:                
  Unrealized holding gains on available-for-sale securities     18       40  
  Income tax expense related to items of other comprehensive income     -       6  
  Other comprehensive income, net of tax     18       34  
Comprehensive loss   $ (6,140 )   $ (9,648 )
                 
Loss per share:                
  Basic and diluted   $ (0.17 )   $ (0.27 )
                 
Weighted average shares outstanding:                
  Basic and diluted     36,614       35,590  
                 
                 
   
   
Smith Micro Software, Inc.  
Consolidated Balance Sheets  
(in thousands)  
    March 31,     December 31,  
    2013     2012  
    (unaudited)     (audited)  
ASSETS                
Current Assets:                
Cash & cash equivalents   $ 12,751     $ 18,873  
Short term investments     15,513       13,328  
Accounts receivable, net     9,804       8,953  
Income tax receivable     681       681  
Inventory, net     133       176  
Prepaid and other assets     729       903  
Deferred tax asset     89       89  
  Total current assets     39,700       43,003  
Equipment & improvements, net     10,228       11,211  
Other assets     184       181  
TOTAL ASSETS   $ 50,112     $ 54,395  
                 
LIABILITIES & STOCKHOLDERS' EQUITY                
Current Liabilities:                
  Accounts payable   $ 1,788     $ 1,978  
  Accrued liabilities     6,227       4,829  
  Deferred revenue     1,605       1,436  
    Total current liabilities     9,620       8,243  
                 
Long-term liabilities     2,960       3,399  
Deferred tax liability     91       91  
    Total non-current liabilities     3,051       3,490  
                 
Stockholders' Equity:                
  Common stock     37       36  
  Additional paid in capital     212,083       211,165  
  Accumulated comprehensive deficit     (174,679 )     (168,539 )
    Total stockholders' equity     37,441       42,662  
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY   $ 50,112     $ 54,395  
                 
                 

Contact Information

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

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