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) August 1, 2012
Smith Micro Software, Inc.
(Exact name of registrant as specified in its charter)
Delaware | 01-35525 | 33-0029027 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
51 Columbia, Aliso Viejo, California | 92656 | |||
(Address of principal executive offices) | (Zip Code) |
Registrants 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:
¨ | Written communications pursuant to Rule 425 under the Securities Act |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act |
¨ | Pre-commencement communications pursuant to Rule 4d-2(b) under the Exchange Act |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act |
Item 2.02. | Results of Operations and Financial Condition. |
On August 1, 2012, the Registrant issued a press release announcing its financial results for the three and six months ended June 30, 2012. A copy of the press release is hereby furnished to the Commission as Exhibit 99.1 and incorporated by reference herein.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
Item 9.01. | Financial Statements and Exhibits. |
9.01(d) Exhibits.
99.1 | Press Release issued August 1, 2012, reporting Registrants financial results for the three and six months ended June 30, 2012, 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) | ||||
August 1, 2012 | By: | /s/ Andrew C. Schmidt | ||
Date | Name: Andrew C. Schmidt Title: Vice President and Chief Financial Officer |
Index to Exhibits
Exhibit |
Exhibit | |
99.1 | Press Release issued August 1, 2012. |
Exhibit 99.1
AT THE COMPANY: | IR INQUIRIES: | |
Suzanne Runald | Charles Messman, Todd Kehrli | |
Public Relations 949-362-5800 pr@smithmicro.com |
MKR Group 323-468-2300 ir@mkr-group.com |
SMSI Q2 2012 Earnings
Smith Micro Software Reports Second Quarter Financial Results
ALISO VIEJO, CA, August 1, 2012 Smith Micro Software, Inc. (NASDAQ:SMSI), a leading provider of wireless and mobility solutions, today reported financial results for the second quarter ended June 30, 2012.
Revenues for the second quarter of 2012 were slightly higher than the first quarter. Our messaging product line, namely Visual Voicemail, continues to outperform, which helps to offset a decline in legacy software revenues, said William W. Smith Jr., President and CEO of Smith Micro Software. As expected, the first commercial deployment of NetWise Director, our data offload and traffic management solution, began part way through the quarter, and the feedback has been positive. The nationwide roll-out is continuing and we anticipate increased volumes in the third quarter and beyond from this new solution.
Our operating expenses for the quarter were down 41% compared to the second quarter of last year, and decreased another 13% from the first quarter. We continue to carefully manage our costs while maintaining strong investment in product innovation and development which should lead to increased revenues down the road.
Smith Micro reported revenues of $10.2 million for the second quarter ended June 30, 2012, compared to $16.1 million reported in the second quarter ended June 30, 2011, and $10.1 million for first quarter of 2012.
Second quarter 2012 gross profit on a GAAP basis was $8.4 million compared to $12.5 million reported in the second quarter of 2011. On a non-GAAP basis (which excludes amortization of intangibles and stock compensation), second quarter 2012 gross profit was $8.4 million compared to $13.8 million for the same quarter last year.
Smith Micro Software Second Quarter 2012 Financial Results | Page 2 of 6 |
GAAP gross profit as a percentage of revenue was 82.3% for the second quarter of 2012 compared to 77.9% for the second quarter of 2011. Non-GAAP gross profit as a percentage of revenue was 82.4% for the second quarter of 2012 compared to 85.7% for the same quarter last year.
GAAP net loss for the second quarter of 2012 was $6.8 million, or $0.19 loss per diluted share compared to a GAAP net loss of $7.8 million, or $0.22 loss per diluted share for the second quarter of 2011.
Non-GAAP net loss (which excludes amortization of intangibles, stock compensation and non-cash tax expense) for the second quarter of 2012 was $3.6 million, or $0.10 loss per diluted share compared to a non-GAAP net loss of $5.2 million, or $0.15 loss per diluted share, for the second quarter of 2011.
For the six months ended June 30, 2012, the Company reported revenues of $20.3 million, compared to $33.9 million for the six months ended June 30, 2011.
GAAP gross profit was $16.3 million for the six months ended June 30, 2012, compared to $26.6 million for the six months ended June 30, 2011. Non-GAAP gross profit (which excludes amortization of intangibles and stock compensation) was $16.3 million for the six months ended June 30, 2012, compared to $29.1 million for the same period last year.
GAAP gross profit as a percentage of revenues was 80.3% for the six months ended June 30, 2012 compared to 78.4% for the same period last year. Non-GAAP gross profit as a percentage of revenues was 80.4% the six months ended June 30, 2012 compared to 85.9% for same period last year.
GAAP net loss for the six months ended June 30, 2012 was $16.5 million, or a loss of $0.46 per diluted share, compared to a GAAP net loss for the six months ended June 30, 2011 of $15.6 million, or $0.44 loss per diluted share. Non-GAAP net loss for the six months ended June 30, 2012 was $8.8 million, or a loss of $0.25 per diluted share, compared to a non-GAAP net loss of $10.0 million, or $0.28 loss per diluted share, for the six months ended June 30, 2011.
Total cash and cash equivalents and short-term investments at June 30, 2012 were $31.3 million.
The Company uses a non-GAAP reconciliation of gross profit, loss before taxes, net loss and loss per share in the presentation of financial results in this press release. Management believes that this presentation may be more meaningful in analyzing our income generation, since amortization of intangibles from acquisitions, stock-based compensation and non-cash tax expense are excluded from the
Smith Micro Software Second Quarter 2012 Financial Results | Page 3 of 6 |
non-GAAP earnings calculation. Since we are in a loss position, the non-GAAP income tax benefit for the period ended June 30, 2012 was computed by using a tax rate of 37.7% using the Companys normalized combined U.S. federal, state and foreign statutory tax rates less various tax adjustments. This presentation may be considered more indicative of our ongoing operational performance. The tables below present the differences between non-GAAP earnings and net loss on an absolute and per-share basis. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and the non-financial measures as reported by Smith Micro Software may not be comparable to similarly titled amounts reported by other companies.
Investor Conference Call:
Smith Micro Software will hold an investor conference call today to discuss the Companys second quarter 2012 results at 4:30 p.m. ET, August 1, 2012. To access the call dial (800) 762-8779 and when prompted provide the pass code SMSI. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. In addition, the conference call will be available over the Internet at http://www.videonewswire.com/event.asp?id=88408 or at www.smithmicro.com in the Investor Relations section.
About Smith Micro Software, Inc.:
Smith Micro Software, Inc. provides software solutions that simplify, secure and enhance the mobile experience. Our portfolio of products and services spans Connectivity Management, Communications and Content Management solutions. Smith Micros solutions include client and server software applications used by the worlds leading wireless operators, device manufacturers and enterprises. For more information about Smith Micro Software (NASDAQ: SMSI), visit smithmicro.com.
Safe Harbor Statement:
This release contains forward-looking statements that involve risks and uncertainties, including without limitation, forward-looking statements relating to the companys financial prospects and other projections of its performance, the existence of new market opportunities and interest in the companys products and solutions, and the companys ability to increase its revenue and regain profitability by capitalizing on these new market opportunities and interest and introducing new products and solutions. Among the important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are changes in demand for the companys products from its customers and their end-users, new and changing technologies, customer acceptance and timing of deployment of those technologies, new and continuing adverse economic conditions, and the companys ability to compete effectively with other software companies. These and other factors discussed in the companys filings with the Securities and Exchange Commission, including its filings on Forms 10-K and 10-Q, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. The forward-looking statements contained in this release are made on the basis of the views and assumptions of management regarding future events and business performance as of the date of this release, and the company does not undertake any obligation to update these statements to reflect events or circumstances occurring after the date of this release.
Smith Micro, NetWise Director, and the Smith Micro logo are registered trademarks or 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 Second Quarter 2012 Financial Results | Page 4 of 6 |
Smith Micro Software, Inc.
Reconciliation of GAAP to Non-GAAP
Results
(in thousands, except per share amounts)unaudited
GAAP | Stock Compensation |
Amortization | Taxes | Non- GAAP |
||||||||||||||||
Three Months Ended 06/30/12: |
||||||||||||||||||||
Gross profit |
$ | 8,375 | $ | 2 | $ | | $ | | $ | 8,377 | ||||||||||
Loss before taxes |
($ | 6,793 | ) | $ | 1,077 | $ | | $ | | ($ | 5,716 | ) | ||||||||
Net loss |
($ | 6,825 | ) | $ | 1,077 | $ | | $ | 2,187 | ($ | 3,561 | ) | ||||||||
EPS-diluted |
($ | 0.19 | ) | $ | 0.03 | $ | 0.00 | $ | 0.06 | ($ | 0.10 | ) | ||||||||
Three Months Ended 06/30/11: |
||||||||||||||||||||
Gross profit |
$ | 12,545 | $ | 5 | $ | 1,259 | $ | | $ | 13,809 | ||||||||||
Loss before taxes |
($ | 13,004 | ) | $ | 2,265 | $ | 2,029 | $ | | ($ | 8,710 | ) | ||||||||
Net loss |
($ | 7,847 | ) | $ | 2,265 | $ | 2,029 | ($ | 1,656 | ) | ($ | 5,209 | ) | |||||||
EPS-diluted |
($ | 0.22 | ) | $ | 0.06 | $ | 0.06 | ($ | 0.05 | ) | ($ | 0.15 | ) | |||||||
Six Months Ended 06/30/12: |
||||||||||||||||||||
Gross profit |
$ | 16,294 | $ | 6 | $ | | $ | | $ | 16,300 | ||||||||||
Loss before taxes |
($ | 16,385 | ) | $ | 2,218 | $ | | $ | | ($ | 14,167 | ) | ||||||||
Net loss |
($ | 16,507 | ) | $ | 2,218 | $ | | $ | 5,463 | ($ | 8,826 | ) | ||||||||
EPS-diluted |
($ | 0.46 | ) | $ | 0.06 | $ | 0.00 | $ | 0.15 | ($ | 0.25 | ) | ||||||||
Six Months Ended 06/30/11: |
||||||||||||||||||||
Gross profit |
$ | 26,560 | $ | 22 | $ | 2,519 | $ | | $ | 29,101 | ||||||||||
Loss before taxes |
($ | 25,973 | ) | $ | 5,274 | $ | 4,059 | $ | | ($ | 16,640 | ) | ||||||||
Net loss |
($ | 15,600 | ) | $ | 5,274 | $ | 4,059 | ($ | 3,684 | ) | ($ | 9,951 | ) | |||||||
EPS-diluted |
($ | 0.44 | ) | $ | 0.15 | $ | 0.11 | ($ | 0.10 | ) | ($ | 0.28 | ) |
Smith Micro Software Second Quarter 2012 Financial Results | Page 5 of 6 |
Smith Micro Software, Inc.
Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2012 and 2011
(in thousands, except per share amounts)unaudited
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues |
$ | 10,171 | $ | 16,105 | $ | 20,285 | $ | 33,896 | ||||||||
Cost of revenues |
1,796 | 3,560 | 3,991 | 7,336 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
8,375 | 12,545 | 16,294 | 26,560 | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling and marketing |
3,954 | 7,097 | 8,546 | 15,459 | ||||||||||||
Research and development |
6,173 | 11,316 | 13,277 | 22,996 | ||||||||||||
General and administrative |
5,149 | 7,178 | 10,653 | 14,163 | ||||||||||||
Restructuring expense (income) |
(77 | ) | | 257 | | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
15,199 | 25,591 | 32,733 | 52,618 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating loss |
(6,824 | ) | (13,046 | ) | (16,439 | ) | (26,058 | ) | ||||||||
Interest and other income, net |
31 | 42 | 54 | 85 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss before provision for income taxes |
(6,793 | ) | (13,004 | ) | (16,385 | ) | (25,973 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Provision for income tax expense (benefit) |
32 | (5,157 | ) | 122 | (10,373 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ | (6,825 | ) | $ | (7,847 | ) | $ | (16,507 | ) | $ | (15,600 | ) | ||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss), before tax: |
||||||||||||||||
Unrealized holding gains (losses) on available-for-sale securities |
(3 | ) | (8 | ) | 37 | (1 | ) | |||||||||
Income tax expense (benefit) related to items of other comprehensive income |
| (3 | ) | 6 | | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss), net of tax |
(3 | ) | (5 | ) | 31 | (1 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive loss |
$ | (6,828 | ) | $ | (7,852 | ) | $ | (16,476 | ) | $ | (15,601 | ) | ||||
|
|
|
|
|
|
|
|
|||||||||
Loss per share: |
||||||||||||||||
Basic and diluted |
$ | (0.19 | ) | $ | (0.22 | ) | $ | (0.46 | ) | $ | (0.44 | ) | ||||
Weighted average shares outstanding: |
||||||||||||||||
Basic and diluted |
36,045 | 35,775 | 35,818 | 35,520 |
Smith Micro Software Second Quarter 2012 Financial Results | Page 6 of 6 |
Smith Micro Software, Inc.
Consolidated Balance Sheets
(in thousands)
June 30, | December 31, | |||||||
2012 | 2011 | |||||||
(unaudited) | (audited) | |||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash & cash equivalents |
$ | 10,966 | $ | 7,475 | ||||
Short term investments |
20,289 | 38,497 | ||||||
Accounts receivable, net |
8,385 | 8,525 | ||||||
Income tax receivable |
7,687 | 8,293 | ||||||
Inventory, net |
236 | 309 | ||||||
Prepaid and other assets |
1,554 | 1,138 | ||||||
Deferred tax asset |
8 | 8 | ||||||
|
|
|
|
|||||
Total current assets |
49,125 | 64,245 | ||||||
Equipment & improvements, net |
13,181 | 15,482 | ||||||
Other assets |
181 | 214 | ||||||
|
|
|
|
|||||
TOTAL ASSETS |
$ | 62,487 | $ | 79,941 | ||||
|
|
|
|
|||||
LIABILITIES & STOCKHOLDERS EQUITY |
||||||||
Current Liabilities: |
||||||||
Accounts payable |
$ | 1,720 | $ | 3,181 | ||||
Accrued liabilities |
6,392 | 7,641 | ||||||
Deferred revenue |
1,172 | 703 | ||||||
|
|
|
|
|||||
Total current liabilities |
9,284 | 11,525 | ||||||
Long-term liabilities |
3,363 | 3,546 | ||||||
Deferred tax liability |
10 | 10 | ||||||
|
|
|
|
|||||
Total non-current liabilities |
3,373 | 3,556 | ||||||
Stockholders Equity: |
||||||||
Common stock |
36 | 36 | ||||||
Additional paid in capital |
209,373 | 207,927 | ||||||
Accumulated comprehensive deficit |
(159,579 | ) | (143,103 | ) | ||||
|
|
|
|
|||||
Total stockholders equity |
49,830 | 64,860 | ||||||
|
|
|
|
|||||
TOTAL LIABILITIES & STOCKHOLDERS EQUITY |
$ | 62,487 | $ | 79,941 | ||||
|
|
|
|