Company Ships First Enterprise Customer; Regains Financial Momentum
ALISO VIEJO, Calif., Aug. 9 /PRNewswire-FirstCall/ -- 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 second quarter 2005 results.
The company reported net revenues of $3.3 million for the quarter
ended June 30, 2005, compared to $3.1 million recorded in the
second quarter of 2004. The company's net income of $764,000 in the
second quarter of 2005 resulted in a net income of $0.04 per basic
share and $0.03 per diluted share, compared to net income of
$634,000 in the second quarter of 2004 or net income of $0.04 per
basic share and $0.04 per diluted share. From a sequential quarter
perspective, net income for the second quarter of 2005 of $764,000,
or $0.03 per fully diluted share, was a significant increase from
the first quarter 2005 net loss of $128,000 or $(0.01) per fully
diluted share. The company also reported a backlog entering into
the third quarter of 2005 of $1.3 million. The company reported net
revenues of $5.4 million for the six months ended June 30, 2005,
compared to $5.6 million recorded in the six months ended June 30,
2004. The company's net income of $636,000 for the six months ended
June 30, 2005 resulted in a net income of $0.03 per basic share and
$0.03 per diluted share. The company ended the quarter with cash
and cash equivalents of $30 million, $20.8 million was the net
result of an equity transaction in February of 2005. Cash and cash
equivalents do not reflect the recent acquisition of Allume
Systems, which closed on July 1, 2005. The agreement called for
Smith Micro to pay $11 million in cash and 397,547 shares of
restricted Smith Micro common stock, valued at $1.75 million to
purchase all of the outstanding shares of Allume Systems, Inc from
International Microcomputer Software, Inc. (IMSI). "As we stated
during the previous quarter conference call, we saw the issues
resulting in our shortfall in the first quarter to be temporary and
we are pleased by the performance for the second quarter," said
William W. Smith, Jr., President and Chief Executive Officer. "We
are excited with the potential that the acquisition of Allume
Systems brings to a combined company. Allume's strong product line
and new JPEG compression technology will be an important addition
to our wireless software offerings," Mr. Smith continues. Investor
Conference Call Smith Micro will hold an investor conference call
today, August 9, 2005, at 4:30 pm EDT to discuss the company's
second quarter financial results. Investors may access the
conference call over the Internet via the company's website
http://www.smithmicro.com/ or at
http://phx.corporate-ir.net/playerlink.zhtml?c=107760&s=wm&e=1099397
About Smith Micro Software Smith Micro Software, Inc.,
headquartered in Aliso Viejo, CA, is a developer and marketer of
wireless communication, broadband, eCommerce and utility software
products for multiple OS platforms. The company designs integrated
cross platform, easy-to-use software for personal computing and
business solutions around the world. With a focus on Wireless and
Broadband and Internet technologies, the company's products and
services enable wireless communications, eCommerce, eBusiness,
Internet communications (voice-over-IP), video conferencing,
network fax, and traditional computer telephony. Smith Micro's
complete line of products is available through original equipment
manufacturers (OEMs), direct sales, retail stores, and value-added
resellers (VARs). Smith Micro's common stock trades on The NASDAQ
Stock Market(R) 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. These forward-looking statements speak only as of the
date hereof and are based upon the information currently available
to the company. Such information is subject to change, and the
company will not necessarily inform you of such changes. 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,
unforeseen delays in the timing of orders from OEM 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 Attached Smith Micro Software, Inc. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per
share amounts) Three Months Ended June 30 (unaudited) 2005 2004 Net
Revenues: Products $3,179 $2,840 Services 151 277 Total Net
Revenues 3,330 3,117 Cost of Revenues: Products 476 627 Services 69
105 Total Cost of Revenues 545 732 Gross Margin 2,785 2,385
Operating Expenses: Selling & Marketing 369 387 Research &
Development 697 621 General & Administrative 1,161 733 Total
Operating Expenses 2,227 1,741 Operating Income 558 644 Interest
Income 214 5 Income Before Income Tax 772 649 Income Tax Expense 8
15 Net Income $764 $634 Net Income per share, basic $0.04 $0.04
Weighted average shares outstanding, basic 21,584 17,072 Net Income
per share, fully diluted $0.03 $0.04 Weighted average shares
outstanding, fully diluted 22,713 18,022 Smith Micro Software, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands,
except per share amounts) Six Months Ended June 30 (unaudited) 2005
2004 Net Revenues: Products $5,038 $5,110 Services 322 495 Total
Net Revenues 5,360 5,605 Cost of Revenues: Products 746 1,247
Services 144 175 Total Cost of Revenues 890 1,422 Gross Margin
4,470 4,183 Operating Expenses: Selling & Marketing 809 790
Research & Development 1,394 1,289 General & Administrative
1,937 1,366 Total Operating Expenses 4,140 3,445 Operating Income
330 738 Interest Income 314 14 Income Before Income Tax 644 752
Income Tax Expense 8 15 Net Income $636 $737 Net Income per share,
basic $0.03 $0.04 Weighted average shares outstanding, basic 20,629
17,048 Net Income per share, fully diluted $0.03 $0.04 Weighted
average shares outstanding, fully diluted 21,901 18,019 Smith Micro
Software, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
June 30, December 31, 2005 2004 (unaudited) ASSETS Current Assets:
Cash & Cash Equivalents $29,946 $8,634 Accounts Receivable, Net
2,660 2,024 Income Tax Receivable 35 35 Inventory, Net 26 47
Prepaid & Other Assets 271 203 Total Current Assets 32,938
10,943 Equipment & Improvements, Net 108 113 Goodwill 1,715
1,715 Other Assets 19 57 TOTAL ASSETS $34,780 $12,828 LIABILITIES
& STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable
$1,048 $939 Accrued Liabilities 1,020 790 Total Current Liabilities
2,068 1,729 Common Stock 22 18 Additional Paid In Capital 48,723
27,750 Accumulated Deficit (16,033) (16,669) Total Stockholders'
Equity 32,712 11,099 TOTAL LIABILITIES & EQUITY $34,780 $12,828
DATASOURCE: Smith Micro Software, Inc. CONTACT: Bruce T. Quigley,
Vice President of Business Development and Investor Relations of
Smith Micro Software, Inc., +1-949-362-5800, ; or IR Inquiries,
Charles Messman or Todd Kehrli of MKR Group, +1-818-556-3700, ; or
Media Inquiries, Steve Simon of S&S Public Relations,
+1-847-955-0700, , all for Smith Micro Software, Inc. Web site:
http://www.smithmicro.com/
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