Aliso Viejo, CA -- Smith Micro Software, Inc. (NASDAQ: SMSI), a developer and marketer of a wide range of software and service solutions for the wireless and Internet markets, today reported its first quarter 2002 results.
The company reported net revenues for the quarter ended March 31, 2002, of $1.9 million, compared to $3.0 million in the first quarter of 2001. The company's net loss of $582,000 in the first quarter of 2002 resulted in a loss of $.04 per basic and diluted share, compared to a net loss of $1.6 million in the first quarter 2001 or a loss of $.10 per basic and diluted share.
Effective January 1, 2002 with the adoption of Statement of Accounting Standards (SFAS) No. 142, Goodwill and Other Intangible Assets, and Smith Micro no longer amortizes goodwill and indefinite life intangibles. For comparison, goodwill amortization expense was $136,000 in the first quarter of 2001. Also, beginning January 1, 2002, the Company adopted Emerging Issues Task Force (EITF) 01-09, Accounting for Consideration Given by a Vendor to a Customer (Including a Reseller of the Vendor's Products), which resulted in certain costs, such as customer rebates, to be classified as a reduction of revenue rather than selling expense. Prior year's balances have been reclassified to conform to the current year's presentation.
"We anticipated several orders to come from customers of our Wireless and Broadband group in the first quarter that were delayed," said William W. Smith, Jr., President and Chief Executive Officer. "We expect these delayed orders to arrive during the second quarter of 2002 and in fact some have already been received. The delay was a combination of difficulties surrounding the implementation of 1xRTT handsets and resulting in shipping delays."
"We continue to be very confident that the wireless sector is an exciting sector for us to address. This belief is reinforced by research suggesting that the wireless sector should continue to have a positive growth rate over the next few years. We continue to look for overall profitable for the year 2002," Mr. Smith concludes.
Investor Conference Call
Smith Micro will hold an investor conference call to discuss the company's results at 4:30 p.m. Eastern time later today. Investors may access the conference call over the Internet via the company's website www.smithmicro.com or www.vcall.com.
About Smith Micro Software
Smith Micro Software, Inc., headquartered in Aliso Viejo, CA, is a developer and marketer of wireless communication and utility software products. The company designs integrated, cross platform, easy-to-use software for personal computing and business solutions around the world. With a focus on the Internet, Wireless, and Broadband technologies, the company's products and services enable wireless communications, eCommerce, eBusiness, Internet communications (voice-over-IP), video conferencing, and network fax, along with traditional computer telephony. Smith Micro's complete line of products is available through direct sales, retail stores, value-added resellers (VARs) and original equipment manufacturers (OEMs). Smith Micro's common stock trades on The Nasdaq Stock Market® under the symbol SMSI. For more information, contact Smith Micro at (949) 362-5800.
This release may contain forward-looking statements that involve risks and uncertainties, including without limitation risks and uncertainties relating to the company's financial prospects and projections, the company's plans for returning to sustained profitability and the company's ability to increase its business in the Wireless and Broadband segments. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are new and changing technologies, customer acceptance of those technologies, fluctuations or cancellations in orders from distribution customers, new and continuing adverse economic conditions, and the company's ability to compete effectively with other software companies. These and other factors could cause actual results to differ materially from those presented in any forward-looking statement and are discussed 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 Schedules follow
|Smith Micro Software, Inc.|
CONSOLIDATED STATEMENTS OF OPERATIONS (see note below)
(in thousands, except per share amounts)
| ||Three Months Ended|
|Total Net Revenues||1,893||3,049|
|Cost of Revenues:|
|Total Cost of Revenues||769||1,038|
| Selling & Marketing||665||1,523|
| Research & Development||540||1,007|
| General & Administrative||489||1,058|
|Total Operating Expenses||1,694||3,588|
|Other (Expense) Income, net||(8)||32|
|Loss Before Income Tax||(578)||(1,545)|
|Income Tax Expense||4||69|
|Net Loss per share, basic and diluted||$(0.04)||$(0.10)|
|Weighted average shares outstanding,|
basic and diluted
Note: Certain reclassifications have been made to prior year's balances to conform to the current year's presentation, which includes the adoption of Emerging Issues Task Force (EITF) 01-09, Accounting for Consideration Given by a Vendor to a Customer (Including a Reseller of the Vendor's Products). The result of this adoption was a decrease in revenue with a corresponding decrease in selling and marketing expense of $196,000 for the three months ended March 31, 2001. The impact for the current year is lower revenue and lower selling and marketing expense of $150,000.
|Smith Micro Software, Inc.|
Consolidated Balance Sheets
| ||March 31,|
|Cash & Cash Equivalents||$2,542||$3,226|
|Accounts Receivable, Net||2,086||2,724|
|Prepaids & Other Assets||237||265|
| Total Current Assets||5,092||6,510|
|Equipment and Improvements, net||418||482|
|LIABILITIES & STOCKHOLDERS' EQUITY|
| Total Current Liabilities||2,017||2,955|
|Additional Paid In Capital||24,789||24,789|
| Total Stockholders' Equity||5,720||6,302|
|TOTAL LIABILITIES AND EQUITY||$7,737||$9,257|