EX-99.1 3 a91537exv99w1.htm EXHIBIT 99.1 exv99w1
 

EXHIBIT 99.1

(SMITH MICRO SOFTWARE LOGO)

     
AT THE COMPANY:   S&S PUBLIC RELATIONS:
Bruce T. Quigley   Steve Simon
Director of Business Development   Media Inquiries
949-362-5800   847-955-0700
bquigley@smithmicro.com   steve@sspr.com

Immediate Release

Smith Micro Announces 2003 Second Quarter Results
Continued Strength in the Wireless Market Fuels Profit

Aliso Viejo, Calif., July 17, 2003— 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 2003 results.

The company reported net revenues for the quarter ended June 30, 2003, of $2.3 million, compared to $1.6 million recorded in the second quarter of 2002. The company’s net income of $124,000 in the second quarter of 2003 resulted in a net profit of $.01 per basic and diluted share, compared to a net loss of $495,000 in the second quarter 2002 or a net loss of $.03 per basic and diluted share.

“The wireless business continues to grow quarter over quarter including revenue in the second quarter of 2003 generated by new business that involved our QuickLink® Mobile Wi-Fi solution,” said William W. Smith, Jr., President and Chief Executive Officer. “We are also looking forward to more rewards of our focus in the Wi-Fi sector.”

“As we add more WWAN and Wi-Fi business going forward, we continue to strengthen our leadership position in the wireless market,” 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, July 17, 2003. Investors may access the conference call over the Internet via the company’s website www.smithmicro.com or at http://www.firstcallevents.com/service/ajwz384712916gf12.html.

-more-

 


 

     
Smith Micro 2nd Quarter 2003 Financial Results   Page 2 of 5

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 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, 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 Attached

 


 

     
Smith Micro 2nd Quarter 2003 Financial Results   Page 3 of 5

Smith Micro Software, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

                   
      Three Months Ended
      June 30
      (unaudited)
      2003   2002
     
 
Net Revenues:
               
 
Products
  $ 2,070     $ 1,353  
 
Services
    216       264  
 
   
     
 
Total Net Revenues
    2,286       1,617  
Cost of Revenues:
               
 
Products
    430       234  
 
Services
    85       151  
 
   
     
 
Total Cost of Revenues
    515       385  
 
   
     
 
Gross Margin
    1,771       1,232  
Operating Expenses:
               
 
Selling & Marketing
    361       567  
 
Research & Development
    603       520  
 
General & Administrative
    670       622  
 
   
     
 
Total Operating Expenses
    1,634       1,709  
 
   
     
 
Operating Income (Loss)
    137       (477 )
Interest Income
    9       10  
Interest & Other Expenses
    (22 )     (24 )
 
   
     
 
Income (Loss) Before Income Tax
    124       (491 )
Income Tax Expense
          4  
 
   
     
 
Net Income (Loss)
  $ 124     $ (495 )
 
   
     
 
Net Income (Loss) per share, basic
  $ 0.01     $ (0.03 )
 
   
     
 
Weighted average shares outstanding, basic
    16,257       16,235  
 
   
     
 
Net Income (Loss) per share, diluted
  $ 0.01     $ (0.03 )
 
   
     
 
Weighted average shares outstanding, diluted
    17,822       16,235  
 
   
     
 

 


 

     
Smith Micro 2nd Quarter 2003 Financial Results   Page 4 of 5

Smith Micro Software, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

                   
      Six Months Ended
      June 30
      (unaudited)
      2003   2002
     
 
Net Revenues:
               
 
Products
  $ 3,655     $ 2,810  
 
Services
    498       700  
 
   
     
 
Total Net Revenues
    4,153       3,510  
Cost of Revenues:
               
 
Products
    751       604  
 
Services
    169       550  
 
   
     
 
Total Cost of Revenues
    920       1,154  
 
   
     
 
Gross Margin
    3,233       2,356  
Operating Expenses:
               
 
Selling & Marketing
    943       1,232  
 
Research & Development
    1,257       1,060  
 
General & Administrative
    1,138       1,111  
 
   
     
 
Total Operating Expenses
    3,338       3,403  
 
   
     
 
Operating Loss
    (105 )     (1,047 )
Interest Income
    16       22  
Interest & Other Expenses
    (34 )     (44 )
 
   
     
 
Loss Before Income Tax
    (123 )     (1,069 )
Income Tax Expense
    3       8  
 
   
     
 
Net Loss
  $ (126 )   $ (1,077 )
 
   
     
 
Net Loss per share, basic & diluted
  $ (0.01 )   $ (0.07 )
 
   
     
 
Weighted average shares outstanding, basic & diluted
    16,240       16,234  
 
   
     
 

 


 

     
Smith Micro 2nd Quarter 2003 Financial Results   Page 5 of 5

Smith Micro Software, Inc
CONSOLIDATED BALANCE SHEETS

(in thousands)

                   
      June 30,   December 31,
      2003   2002
     
 
      (unaudited)        
ASSETS
               
Current Assets:
               
Cash & Cash Equivalents
  $ 3,264     $ 3,627  
Accounts Receivable, Net
    1,410       633  
Inventory, Net
    45       45  
Prepaids & Other Assets
    146       263  
 
   
     
 
 
Total Current Assets
    4,865       4,568  
Equipment & Improvements, Net
    144       220  
Intangible Assets, Net
    81       224  
Goodwill
    1,715       1,715  
Other Assets
    93       39  
 
   
     
 
TOTAL ASSETS
  $ 6,898     $ 6,766  
 
   
     
 
LIABILITIES & STOCKHOLDERS’ EQUITY
               
Current Liabilities:
               
Accounts Payable
  $ 734     $ 445  
Accrued Liabilities
    592       709  
 
   
     
 
 
Total Current Liabilities
    1,326       1,154  
 
               
Common Stock
    16       16  
Additional Paid In Capital
    24,873       24,787  
Accumulated Deficit
    (19,317 )     (19,191 )
 
   
     
 
 
Total Stockholders’ Equity
    5,572       5,612  
 
   
     
 
TOTAL LIABILITIES & EQUITY
  $ 6,898     $ 6,766  
 
   
     
 

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