Smith Micro Announces Profitable First Quarter 2004 With Net Revenue of $2.5 Million; an Increase of 33% over Prior Year
Aliso Viejo, Calif., April 22, 2004-- 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 year-end 2003 results.
The company reported net revenues for the quarter ended March 31, 2004, of $2.5 million, compared to $1.9 million recorded in the first quarter of 2003. The company's net income of $103,000 in the first quarter of 2004 resulted in a net gain of $.01 per basic and diluted share, compared to a net loss of $250,000 in the first quarter of 2003 or a net loss of $.02 per basic and diluted share.
"I am pleased to report a profit this quarter as well as a backlog in excess of $800,000," said William W. Smith, Jr., President and Chief Executive Officer. "The wireless business continues to be our primary growth area although we saw growth in the first quarter in all of our business areas. We are excited that we have increased our revenue 59% over the fourth quarter of 2003. The backlog gives us a positive start for the second quarter and we are looking forward to continuing a profitable 2004," 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, Thursday, April 22, 2004. Investors may access the conference call over the Internet via the company's website www.smithmicro.com or at www.firstcallevents.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.
Note: Financial Schedules follow
Smith Micro Software, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (see note below)
(in thousands, except per share amounts) |
| | Three Months Ended
March 31 (unaudited) | | | 2004 | 2003 | | Net Revenues: | | Products | $2,270 | $1,585 | | Services | 218 | 282 |
| | Total Net Revenues | 2,488 | 1,867 | | | | Cost of Revenues: | | Products | 620 | 321 | | Services | 70 | 84 |
| | Total Cost of Revenues | 690 | 405 |
| | Gross Margin | 1,798 | 1,462 | | | | Operating Expenses: | | Selling & Marketing | 403 | 582 | | Research & Development | 668 | 654 | | General & Administrative | 615 | 468 |
| | Total Operating Expenses | 1,686 | 1,704 |
| | Operating Income (Loss) | 112 | (242) | | Interest Income | 9 | 7 | | Interest & Other Expenses | (18) | (12) |
| | Loss Before Income Tax | 103 | (247) | | Income Tax Expense | ----- | 3 |
| | Net Income(Loss) | $103 | $(250) |
| | Net Income (Loss) per share, basic | $0.01 | $(0.02) |
| | Weighted average shares outstanding, basic | 17,024 | 16,223 |
| | Net Income (Loss) per share, fully diluted | $0.01 | $(0.02) |
| | Weighted average shares outstanding, fully diluted | 18,042 | 16,223 |
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Smith Micro Software, Inc.
Consolidated Balance Sheets
(in thousands) |
| | March 31,
2004
(unaudited) | December 31,
2003 | ASSETS
Current Assets: | | Cash & Cash Equivalents | $3,797 | $3,722 | | Accounts Receivable, Net | 1,072 | 741 | | Inventory, Net | 93 | 22 | | Prepaids & Other Assets | 166 | 204 |
| | Total Current Assets | 5,128 | 4,689 | | Equipment and Improvements, net | 84 | 70 | | Intangible Assets, Net | 28 | 40 | | Goodwill | 1,715 | 1,715 | | Other Assets | 67 | 73 |
| | TOTAL ASSETS | $7,022 | $6,587 |
| | | LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities: | | Accounts Payable | $803 | $538 | | Accrued Liabilities | 505 | 459 |
| | Total Current Liabilities | 1,308 | 997 | | | | Common Stock | 17 | 17 | | Additional Paid In Capital | 25,708 | 25,687 | | Accumulated Deficit | (20,011) | (20,114) |
| | Total Stockholders' Equity | 5,714 | 5,590 |
| | TOTAL LIABILITIES AND EQUITY | $7,022 | $6,587 |
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