|By Marketwired .||
|July 30, 2014 04:24 PM EDT||
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 ============== ==============
Sematext is a globally distributed organization that builds innovative Cloud and On Premises solutions for performance monitoring, alerting and anomaly detection (SPM), log management and analytics (Logsene), and search analytics (SSA). We also provide Search and Big Data consulting services and offer 24/7 production support for Solr and Elasticsearch.
Mar. 31, 2015 02:15 PM EDT Reads: 1,569
SYS-CON Events announced today that Emcien will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Emcien’s vision is to let anyone use data to know the future. Emcien has built an automated, predictive analysis product that improves the lives of real people. Emcien allows people to automate their data analysis so they can build a better future.
Mar. 31, 2015 02:00 PM EDT Reads: 463
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, will explain the best practices of continuous testing at high scale, which is r...
Mar. 31, 2015 02:00 PM EDT Reads: 2,050
DevOps is all the rage these days and with good reason as it promises to reduce the time-to-market for new applications. It also promises to improve change management, allowing teams to deploy changes to their applications quickly and efficiently. However, DevOps isn’t something you buy, install, or implement; rather it is the symptom of an appropriate organizational system. In his session at DevOps Summit, Mark Thiele, EVP, Data Center Technologies at SUPERNAP International, will discuss how ...
Mar. 31, 2015 01:00 PM EDT Reads: 1,497
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable clou...
Mar. 31, 2015 12:00 PM EDT Reads: 514
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
Mar. 31, 2015 12:00 PM EDT Reads: 1,541
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
Mar. 31, 2015 12:00 PM EDT Reads: 1,375
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, will discuss how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at...
Mar. 31, 2015 11:46 AM EDT Reads: 383
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
Mar. 31, 2015 11:00 AM EDT Reads: 2,208
Even though it’s now Microservices Journal, long-time fans of SOA World Magazine can take comfort in the fact that the URL – soa.sys-con.com – remains unchanged. And that’s no mistake, as microservices are really nothing more than a new and improved take on the Service-Oriented Architecture (SOA) best practices we struggled to hammer out over the last decade. Skeptics, however, might say that this change is nothing more than an exercise in buzzword-hopping. SOA is passé, and now that people are ...
Mar. 31, 2015 11:00 AM EDT Reads: 1,385
With the arrival of the Big Data revolution, a data professional is expected to master a broad spectrum of complex domains including data processing, mathematics, programming languages, machine learning techniques, and business knowledge. While this mastery is undoubtedly important, this narrow focus on tool usage has divorced many from the imagination required to solve real-world problems. As the demand for analysis increases, the data science community must transform from tool experts to "data...
Mar. 31, 2015 10:48 AM EDT Reads: 455
SYS-CON Events announced today that the DevOps Institute has been named “Association Sponsor” of SYS-CON's DevOps Summit, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. The DevOps Institute provides enterprise level training and certification. Working with thought leaders from the DevOps community, the IT Service Management field and the IT training market, the DevOps Institute is setting the standard in quality for DevOps education and training.
Mar. 31, 2015 10:30 AM EDT Reads: 1,296
SYS-CON Events announced today the DevOps Foundation Certification Course, being held June ?, 2015, in conjunction with DevOps Summit and 16th Cloud Expo at the Javits Center in New York City, NY. This sixteen (16) hour course provides an introduction to DevOps – the cultural and professional movement that stresses communication, collaboration, integration and automation in order to improve the flow of work between software developers and IT operations professionals. Improved workflows will res...
Mar. 31, 2015 10:00 AM EDT Reads: 1,747
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
Mar. 31, 2015 09:15 AM EDT Reads: 2,287
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
Mar. 31, 2015 09:00 AM EDT Reads: 1,690