8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)            February 9, 2005

Smith Micro Software, Inc.

(Exact name of registrant as specified in its charter)

Delaware	0-26536	33-0029027
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

51 Columbia, Suite 200, Aliso Viejo, California	92656
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code           (949) 362-5800

None

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act

o Pre-commencement communications pursuant to Rule 4d-2(b) under the Exchange Act

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

TABLE OF CONTENTS

	Item 2.02. Results of Operations and Financial Condition.
	Item 9.01 Financial Statements and Exhibits.
SIGNATURES
Index to Exhibits
EXHIBIT 99.1

Item 2.02. Results of Operations and Financial Condition.

On February 9, 2005, the Registrant issued a press release announcing its financial results for the quarter and fiscal year ended December 31, 2004. A copy of the press release is hereby furnished to the Commission as Exhibit 99.1 and incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

9.01(c) Exhibits.

     99.1 Press Release issued February 9, 2005, reporting Registrant’s financial results for the quarter and year ended December 31, 2004, furnished pursuant to Item 2.02.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SMITH MICRO SOFTWARE, INC.
	(Registrant)
February 9, 2005	By:	/s/ William W. Smith, Jr.
Date	Name:	William W. Smith, Jr.
	Title:	Chairman of the Board, President and   Chief Executive Officer

Index to Exhibits

Exhibit Number	Exhibit
99.1	Press Release issued February 9, 2005.

EX-99.1

Exhibit 99.1

AT THE COMPANY:
Bruce T. Quigley
Vice President of Business
Development and Investor Relations
949-362-5800
bquigley@smithmicro.com IR INQUIRIES:
Charles Messman, Todd Kehrli
MKR Group
818-556-3700
 
ir@mkr-group.com MEDIA INQUIRIES:
Steve Simon
S&S Public Relations
847-955-0700
 
steve@sspr.com

FOR IMMEDIATE RELEASE

SMITH MICRO ANNOUNCES 2004 NET REVENUES OF $13.3 MILLION, AN
INCREASE OF 85% OVER 2003; 2004 NET INCOME OF $3.4 MILLION OR $0.19
PER FULLY DILUTED SHARE

Recent EV-DO, 3G High-Speed Wireless Data Service Availability Sparks Growth

Aliso Viejo, Calif., February 9, 2005— 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 fourth quarter and 2004 year-end results.

The company reported net revenues for the quarter ended December 31, 2004, of $4.2 million, an increase of 166% compared to $1.6 million recorded in the fourth quarter of 2003. The company’s net income of $1.6 million in the fourth quarter of 2004 resulted in a net income of $0.09 per basic and diluted share, compared to a net loss of $325,000 in the fourth quarter of 2003 or a net loss of $0.02 per basic and diluted share.

For the year, the company reported net revenues of $13.3 million, an increase of 85%, when compared to net revenues of $7.2 million in 2003. Net income for the year was $3.4 million, or $0.19 per fully diluted share, compared to a net loss of $923,000 or ($0.06) per basic and diluted share last year. The company finished the year with cash and cash equivalents of $8.6 million, an increase of 132% versus the $3.7 million reported a year ago. The company also reported a backlog entering into the first quarter of 2005 of $1.0 million.

“We are very pleased with our 2004 results,” said William W. Smith, Jr., President and Chief Executive Officer. “We continued to build upon the momentum we started in 2003 as the leading provider of wireless connectivity software in the fast emerging high-speed wireless data market. We grew not only our top line significantly, but returned to solid profitability in the year, highlighting the significant leverage we have in our model as we grow revenues.” Mr. Smith concluded, “The high-speed wireless data market is still in its infancy with Verizon Wireless, the leader in wireless data in North America, only 6 months into its BroadbandAccess rollout. This leaves us looking forward to delivering solid growth again in 2005.”

- more –

Smith Micro Year-End 2004 Financial Results Page 2 of 5

Investor Conference Call

Smith Micro will hold an investor conference call to discuss the company’s results at 4:30 p.m. Eastern time, Wednesday, February 9, 2005. Investors may access the conference call over the Internet via the company’s website www.smithmicro.com or at: http://phx.corporate-ir.net/playerlink.zhtml?c=107760&s=wm&e=1002818.

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® 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 Year-End 2004 Financial Results Page 3 of 5

Smith Micro Software, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

	Three Months Ended
	December 31
	(unaudited)
	2004		2003
Net Revenues:
Products	$	3,980	$	1,353
Services		175		209
Total Net Revenues		4,155		1,562
Cost of Revenues:
Products		728		301
Services		87		81
Total Cost of Revenues		815		382
Gross Margin		3,340		1,180
Operating Expenses:
Selling & Marketing		354		359
Research & Development		634		627
General & Administrative		712		529
Total Operating Expenses		1,700		1,515
Operating Income (Loss)		1,640		(335	)
Interest Income		25		10
Income (Loss) Before Income Tax		1,665		(325	)
Income Tax Expense		34		—
Net Income (Loss)	$	1,631	$	(325	)
Net Income (Loss) per share, basic	$	0.09	$	(0.02	)
Weighted average shares outstanding, basic		17,706		16,946
Net Income (Loss) per share, fully diluted	$	0.09	$	(0.02	)
Weighted average shares outstanding, fully diluted		19,125		16,946

Smith Micro Year-End 2004 Financial Results Page 4 of 5

Smith Micro Software, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

	Twelve Months Ended
	December 31
	(unaudited)
	2004		2003
Net Revenues:
Products	$	12,394	$	6,291
Services		922		925
Total Net Revenues		13,316		7,216
Cost of Revenues:
Products		2,530		1,350
Services		380		321
Total Cost of Revenues		2,910		1,671
Gross Margin		10,406		5,545
Operating Expenses:
Selling & Marketing		1,519		1,666
Research & Development		2,556		2,506
General & Administrative		2,868		2,330
Total Operating Expenses		6,943		6,502
Operating Income (Loss)		3,463		(957	)
Interest Income		53		37
Income (Loss) Before Income Tax		3,516		(920	)
Income Tax Expense		71		3
Net Income (Loss)	$	3,445	$	(923	)
Net Income (Loss) per share, basic	$	0.20	$	(0.06	)
Weighted average shares outstanding, basic		17,352		16,511
Net Income (Loss) per share, fully diluted	$	0.19	$	(0.06	)
Weighted average shares outstanding, fully diluted		18,497		16,511

Smith Micro Year-End 2004 Financial Results Page 5 of 5

Smith Micro Software, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands)

	December 31,			December 31,
	2004			2003
	(unaudited)
ASSETS
Current Assets:
Cash & Cash Equivalents	$	8,634		$	3,722
Accounts Receivable, Net		2,024			741
Income Tax Receivable		35			—
Inventory, Net		47			22
Prepaid & Other Assets		203			204
Total Current Assets		10,943			4,689
Equipment & Improvements, Net		113			70
Intangible Assets, Net		—			40
Goodwill		1,715			1,715
Other Assets		57			73
TOTAL ASSETS	$	12,828		$	6,587
LIABILITIES & STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable	$	939		$	538
Accrued Liabilities		790			459
Total Current Liabilities		1,729			997
Common Stock		18			17
Additional Paid In Capital		27,750			25,687
Accumulated Deficit		(16,669	)		(20,114	)
Total Stockholders’ Equity		11,099			5,590
TOTAL LIABILITIES & EQUITY	$	12,828		$	6,587

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