smsi-ex991_15.htm

The following selected consolidated financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and the related notes thereto appearing elsewhere in this Annual Report. The following selected consolidated statement of operations and comprehensive loss data for the years ended December 31, 2016, 2015 and 2014, and the consolidated balance sheet data at December 31, 2016 and 2015, have been derived from audited consolidated financial statements included elsewhere in this Annual Report. The consolidated statement of operations and comprehensive loss data presented below for the years ended December 31, 2013 and 2012, and the consolidated balance sheet data at December 31, 2014, 2013 and 2012 are derived from audited consolidated financial statements that are not included in this Annual Report.

	Year Ended December 31,
	2016			2015			2014			2013			2012
Consolidated Statement of Operations and Comprehensive Loss Data (in thousands, except per share data):
Revenues	$	28,235		$	39,507		$	36,979		$	42,675		$	43,329
Cost of revenues		7,564			8,152			9,317			9,707			8,448
Gross profit		20,671			31,355			27,662			32,968			34,881
Operating expenses:
Selling and marketing		9,615			8,902			9,559			15,675			16,666
Research and development		15,906			13,863			14,192			21,305			24,767
General and administrative		10,341			11,128			13,218			18,216			20,211
Restructuring expenses		303			—			2,435			5,602			238
Long-lived asset impairment		411			—			—			—			—
Total operating expenses		36,576			33,893			39,404			60,798			61,882
Operating loss		(15,905	)		(2,538	)		(11,742	)		(27,830	)		(27,001	)
Non-operating income (expense):
Change in carrying value of contingent liability		668			—			—			—			1,210
Interest income (expense), net		(313	)		1			(5	)		28			91
Other income (expense), net		(22	)		3			(3	)		2			3
Loss before provision for income taxes		(15,572	)		(2,534	)		(11,750	)		(27,800	)		(25,697	)
Provision for income tax expense (benefit)		(229	)		68			49			153			(234	)
Net loss		(15,343	)		(2,602	)		(11,799	)		(27,953	)		(25,463	)
Other comprehensive income (loss), before tax:
Unrealized holding gains (losses) on available- for-sale securities		2			(1	)		—			7			33
Income tax expense related to items of other comprehensive income		—			—			—			—			6
Other comprehensive income (expense), net of tax		2			(1	)		—			7			27
Comprehensive loss	$	(15,341	)	$	(2,603	)	$	(11,799	)	$	(27,946	)	$	(25,436	)
Net loss per share:
Basic	$	(1.28	)	$	(0.23	)	$	(1.16	)	$	(3.02	)	$	(2.84	)
Diluted	$	(1.28	)	$	(0.23	)	$	(1.16	)	$	(3.02	)	$	(2.84	)
Weighted average shares:
Basic		11,951			11,486			10,162			9,245			8,962
Diluted		11,951			11,486			10,162			9,245			8,962

	As of December 31,
	2016			2015			2014			2013			2012
Consolidated Balance Sheet Data (in thousands):
Total assets	$	14,308		$	24,473		$	27,390		$	31,538		$	54,395
Total liabilities		11,249			10,447			12,488			13,367			11,733
Accumulated comprehensive deficit		(226,228	)		(210,887	)		(208,284	)		(196,485	)		(168,539	)
Total stockholders' equity	$	3,059		$	14,026		$	14,902		$	18,171		$	42,662