ALISO VIEJO, CA -Smith Micro Software, Inc. (Nasdaq NMS:SMSI) today announced net revenues of $2,087,000 for the third quarter ended September 30, 1998 compared with net revenues of $1,656,000 for second quarter ended June 30, 1998 and with net revenues of $3,150,000 for the third quarter of 1997. The company recorded a net loss for the quarter of ($708,000), or ($0.05) per dillutive share, compared with a net loss of ($709,000), or ($0.05) per dillutive share for the second quarter of 1998 and net income of $35,000, or $0.00 per dillutive share, for the comparable 1997 period.
For the nine months ended September 30, 1998, net revenues were $7,009,000 compared with net revenues of $8,428,000 for the same period in 1997. The company recorded a net loss for the nine-month period of ($1,304,000), or ($0.09) per share, compared with a net loss of ($1,631,000), or ($0.12) per share, for the same period in 1997.
"Third quarter 1998 revenues increased $431,000 over the second quarter of 1998. We also incurred increased sales and marketing costs for the launch of Internet CommSuite," said William W. Smith, Jr., President and CEO of Smith Micro. "We are encouraged that initial sales of our newly-released Internet CommSuite software and revenues related to a new corporate healthcare venture illustrate that our new corporate strategy is already showing positive results."
Internet CommSuite is the first in a series of new Smith Micro products designed for high-speed Internet connectivity that will move the company beyond the analog world of point-to-point software into broadband technologies, such as cable and xDSL, optimizing Internet Protocol ("IP") communications. Smith Micro began shipping Internet CommSuite into retail channels at the end of September and the company's new Internet software may now be found on store shelves at CompUSA, OfficeMax, Micro Center, Staples, Fry's Electronics and other major software retailers.
Over the past three weeks, the company announced a series of new OEM agreements for its Internet CommSuite software with cable TV service providers that are now offering Internet access, digital subscriber line service providers, Internet service providers, a digital camera manufacturer, and a manufacturer of high-performance analog modems.
This release may contain forward-looking statements that involve risks and uncertainties. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements are economic, competitive, governmental and technological factors effecting the company's operations, markets, products, services and prices, as well as, other factors detailed in the company's filings with the Securities and Exchange Commission including its recent filings on Forms 10-K and 10-Q.
Smith Micro and the Smith Micro logo are trademarks or registered trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective companies.
|FINANCIAL TABLES FOLLOW|
|SMITH MICRO SOFTWARE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS|
(in thousands, except share and per-share amounts)
| ||Third Quarter Ended|
|Nine Months Ended|
|Cost of revenue||693||894||2,140||2,944|
| Selling and marketing||1,028||688||2,555||2,604|
| Research and development||816||803||2,441||2,536|
| General and administrative||820||907||2,496||3,379|
|Total operating expenses||2,664||2,398||7,492||8,519|
|Interest income, net||201||171||564||531|
|Loss before income taxes||(1,069)||59||(2,059)||(2,504)|
|Income tax expense (benefit)||(361)||24||(755)||(873)|
|Net loss per basic and diluted share||$(0.5)||$(0.00)||$(0.09)||$(0.12)|
|Weighted average shares outstanding, Basic||14,075||14,075||14,075||14,075|
|Weighted average shares outstanding, Diluted||14,075||14,075||14,075||14,075|
*Includes the results of Pacific Coast Software for all periods presented. Pacific Coast Software, acquired by Smith Micro in September, 1999, was accounted for as a pooling of interests.