EX-99.1 3 e16830ex99_1.txt PRESS RELEASE Exhibit 99.1 Smith Micro Announces 2003 Year-End Results First Quarter 2004 Brightened With $1Million Backlog ALISO VIEJO, Calif., Feb. 5 /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 year-end 2003 results. The company reported net revenues for the quarter ended December 31, 2003, of $1.6 million, compared to $1.8 million recorded in the fourth quarter of 2002. The company's net loss of $325,000 in the fourth quarter of 2003 resulted in a net loss of $.02 per basic and diluted share, compared to a net loss of $286,000 in the fourth quarter of 2002 or a net loss of $.02 per basic and diluted share after a non-recurring tax benefit. "The bright side is that we have a $1 million backlog situation for the first quarter 2004 and either have fulfilled the orders already or will do so before the end of the quarter," said William W. Smith, Jr., President and Chief Executive Officer. "A backlog like this is not necessarily indicative of trends in our business and this is particularly true in OEM business models, like ours, where order patterns tend to be sporadic and likely to come in all at once, which causes us to have to prioritize shipments," Mr. Smith continued. "As I indicated in last quarter's announcement, the wireless market is an emerging market but we still see indications that it will grow over time as we have seen with some of the wireless leaders showing growth in their various wireless businesses," 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, February 5, 2004. Investors may access the conference call over the Internet via the company's website www.smithmicro.com or at http://www.firstcallevents.com/service/ajwz398302680gf12.html . 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(R) under the symbol SMSI. For more information, contact Smith Micro at (949) 362-5800 or visit the company's Web site at www.smithmicro.com . 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, 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. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended December 31 (unaudited) 2003 2002 Net Revenues: Products $1,353 $1,582 Services 209 193 Total Net Revenues 1,562 1,775 Cost of Revenues: Products 301 309 Services 81 122 Total Cost of Revenues 382 431 Gross Margin 1,180 1,344 Operating Expenses: Selling & Marketing 359 427 Research & Development 627 599 General & Administrative 512 603 Total Operating Expenses 1,498 1,629 Operating Loss (318) (285) Interest Income 10 13 Interest & Other Expenses (17) (14) Loss Before Income Tax (325) (286) Income Tax Expense (Benefit) -- -- Net Loss $325 $286 Net Loss per share, basic and diluted $0.02 $0.02 Weighted average shares outstanding, basic and diluted 16,946 16,235 Smith Micro Software, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Twelve Months Ended December 31 (unaudited) 2003 2002 Net Revenues: Products $6,291 $6,029 Services 925 1,102 Total Net Revenues 7,216 7,131 Cost of Revenues: Products 1,350 1,420 Services 321 782 Total Cost of Revenues 1,671 2,202 Gross Margin 5,545 4,929 Operating Expenses: Selling & Marketing 1,666 2,175 Research & Development 2,506 2,162 General & Administrative 2,258 2,316 Total Operating Expenses 6,430 6,653 Operating Loss (885) (1,724) Interest Income 37 45 Interest & Other Expenses (72) (71) Loss Before Income Tax (920) (1,750) Income Tax Expense (Benefit) 3 (1,062) Net Loss $923 $688 Net Loss per share, basic and diluted $0.06 $0.04 Weighted average shares outstanding, basic and diluted 16,511 16,235 Smith Micro Software, Inc. CONSOLIDATED BALANCE SHEETS (in thousands) December 31, December 31, 2003 2002 (unaudited) (unaudited) ASSETS Current Assets: Cash & Cash Equivalents $3,722 $3,627 Accounts Receivable, Net 741 633 Inventory, Net 22 45 Prepaids & Other Assets 204 263 Total Current Assets 4,689 4,568 Equipment & Improvements, Net 70 220 Intangible Assets, Net 40 224 Goodwill 1,715 1,715 Other Assets 73 39 TOTAL ASSETS $6,587 $6,766 LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable $538 $445 Accrued Liabilities 459 709 Total Current Liabilities 997 1,154 Common Stock 17 16 Additional Paid In Capital 25,687 24,787 Accumulated Deficit (20,114) (19,191) Total Stockholders' Equity 5,590 5,612 TOTAL LIABILITIES & EQUITY $6,587 $6,766 SOURCE Smith Micro Software, Inc. -0- 02/05/2004 /CONTACT: Bruce T. Quigley, Director of Business Development of Smith Micro Software, Inc., +1-949-362-5800, bquigley@smithmicro.com ; or media, Steve Simon of S&S PUBLIC RELATIONS, +1-847-955-0700, steve@sspr.com , for Smith Micro Software, Inc./ /Web site: http://www.firstcallevents.com/service/ajwz398302680gf12.html / /Audio: http://www.smithmicro.com / (SMSI) CO: Smith Micro Software, Inc. ST: California IN: CPR STW TLS PEL MLM ITE OTC SU: ERN CCA