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) March 6, 2014
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 March 6, 2014, the Registrant issued a press release announcing its financial results for the three and twelve months ended December 31, 2013. 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 March 6, 2014, reporting Registrants financial results for the three and twelve months ended December 31, 2013, 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) | ||||||
March 6, 2014 |
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 March 6, 2014. |
Exhibit 99.1
AT THE COMPANY: | IR INQUIRIES: | |
Suzanne Runald | Todd Kehrli or Jim Byers | |
Public Relations 949-362-5800 pr@smithmicro.com |
MKR Group 323-468-2300 smsi@mkr-group.com |
Smith Micro Software Reports Fourth Quarter and Fiscal Year 2013 Financial Results
Aliso Viejo, CA, March 6, 2014 Smith Micro Software, Inc. (NASDAQ:SMSI), a leading provider of wireless and mobility solutions, today reported financial results for the fourth quarter and full year ended December 31, 2013.
We achieved a 35 percent sequential increase in fourth quarter revenues, primarily due to new revenues from a leading chipset manufacturer and a strong holiday season for our productivity and graphics products, said William W. Smith Jr., President and CEO of Smith Micro Software. Fourth quarter revenues were down approximately 2 percent from the same quarter last year, but we saw a total year-over-year increase in our CommSuite, NetWise, and Productivity & Graphics product lines totaling $4.6 million. In addition, fourth quarter non-GAAP loss per share improved from $0.06 in 2012 to $0.01 loss per share in 2013, reflecting the positive impact of our third quarter restructuring.
Smith Micro reported revenues of $11.8 million for the fourth quarter ended December 31, 2013, compared to $12.0 million reported in the fourth quarter of 2012.
Fourth quarter 2013 gross profit on both a GAAP and non-GAAP basis (which excludes stock compensation) was $9.5 million, compared to $9.7 million reported in the fourth quarter of 2012.
GAAP and non-GAAP gross profit as a percentage of revenues was 80.0 percent for the fourth quarter of 2013, compared to 80.6 percent on both a GAAP and non-GAAP basis for the fourth quarter of 2012.
GAAP net loss for the fourth quarter of 2013 was $1.5 million, or $0.04 loss per share, compared to GAAP net loss of $4.1 million, or $0.12 loss per share, for the fourth quarter of 2012.
Smith Micro Software Fourth Quarter 2013 Financial Results | Page 2 of 6 |
Non-GAAP net loss (which excludes stock compensation and non-cash tax expense) for the fourth quarter of 2013 was $0.4 million, or $0.01 loss per share, compared to a non-GAAP net loss of $2.2 million, or $0.06 loss per share, for the fourth quarter of 2012.
For the fiscal year ended December 31, 2013, the Company reported revenues of $42.7 million, compared to $43.3 million for fiscal year 2012.
Fiscal year 2013 gross profit on both a GAAP and non-GAAP basis (which excludes stock compensation) was $33.0 million, compared to $34.9 million on both a GAAP and non-GAAP basis for the fiscal year 2012.
GAAP and non-GAAP gross profit as a percentage of revenues was 77.3 percent for fiscal year 2013 compared to 80.5 percent for the fiscal year 2012.
GAAP net loss for the fiscal year ended December 31, 2013 was $28.0 million, or $0.76 loss per share, compared to a net loss of $25.5 million, or $0.71 loss per share, for fiscal year 2012. GAAP net loss for fiscal 2013 includes a one-time charge to expense of $5.6 million for restructuring recorded in the third quarter.
Non-GAAP net loss (which excludes stock compensation and non-cash tax expense) for the fiscal year ended December 31, 2013 was $14.8 million, or $0.40 loss per share, compared to a non-GAAP net loss of $13.4 million, or $0.37 loss per share, for fiscal year 2012. Excluding the one-time restructuring charge, the non-GAAP loss per share would have been $0.31 for fiscal year 2013.
Total cash and cash equivalents and short-term investments at December 31, 2013 were $14.8 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 stock-based compensation and non-cash tax expense are excluded from the non-GAAP earnings calculation. Since we are in a loss position, the non-GAAP income tax benefit for the fiscal fourth quarter and year 2013 was computed by using a tax rate of 38 percent 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
Smith Micro Software Fourth Quarter 2013 Financial Results | Page 3 of 6 |
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 fourth quarter and fiscal year 2013 results at 4:30 p.m. ET, March 6, 2014. To access the call, dial (877) 941-1465 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 on the Smith Micro website in the Investor Relations section.
About Smith Micro Software, Inc.:
Smith Micro Software provides solutions that simplify, secure and enhance the mobile experience. Our portfolio includes a wide range of applications that manage broadband connectivity, data traffic, devices, voice and video communications over wireless networks. With 30 years of experience developing world-class client and server software, Smith Micro helps the leading mobile network operators, device manufacturers and enterprises increase efficiency and capitalize on the growth of mobile-connected consumers and workforces. For more information, visit smithmicro.com. (NASDAQ:SMSI)
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, customer concentration given that the majority of our sales depend on a few large client relationships, including Sprint, 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 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 Fourth Quarter 2013 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 |
Taxes | Non- GAAP |
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Three Months Ended 12/31/13: | ||||||||||||||||
Gross profit |
$ | 9,473 | $ | 4 | $ | | $ | 9,477 | ||||||||
Loss before provision for income taxes |
($ | 1,498 | ) | $ | 843 | $ | | ($ | 655 | ) | ||||||
Net loss |
($ | 1,502 | ) | $ | 843 | $ | 253 | ($ | 406 | ) | ||||||
EPS-diluted |
($ | 0.04 | ) | $ | 0.02 | $ | 0.01 | ($ | 0.01 | ) | ||||||
Three Months Ended 12/31/12: | ||||||||||||||||
Gross profit |
$ | 9,695 | $ | 4 | $ | | $ | 9,699 | ||||||||
Loss before provision for income taxes |
($ | 4,545 | ) | $ | 1,005 | $ | | ($ | 3,540 | ) | ||||||
Net loss |
($ | 4,143 | ) | $ | 1,005 | $ | 933 | ($ | 2,205 | ) | ||||||
EPS-diluted |
($ | 0.12 | ) | $ | 0.03 | $ | 0.03 | ($ | 0.06 | ) | ||||||
Twelve Months Ended 12/31/13: | ||||||||||||||||
Gross profit |
$ | 32,968 | $ | 21 | $ | | $ | 32,989 | ||||||||
Loss before provision for income taxes |
($ | 27,800 | ) | $ | 3,889 | $ | | ($ | 23,911 | ) | ||||||
Net loss |
($ | 27,953 | ) | $ | 3,889 | $ | 9,238 | ($ | 14,826 | ) | ||||||
EPS-diluted |
($ | 0.76 | ) | $ | 0.11 | $ | 0.25 | ($ | 0.40 | ) | ||||||
Twelve Months Ended 12/31/12: | ||||||||||||||||
Gross profit |
$ | 34,881 | $ | 13 | $ | | $ | 34,894 | ||||||||
Loss before provision for income taxes |
($ | 25,697 | ) | $ | 4,203 | $ | | ($ | 21,494 | ) | ||||||
Net loss |
($ | 25,463 | ) | $ | 4,203 | $ | 7,870 | ($ | 13,390 | ) | ||||||
EPS-diluted |
($ | 0.71 | ) | $ | 0.12 | $ | 0.22 | ($ | 0.37 | ) |
Smith Micro Software Fourth Quarter 2013 Financial Results | Page 5 of 6 |
Smith Micro Software, Inc.
Statements of Comprehensive Loss for the Three Months and Twelve Months Ended December 31, 2013 and 2012
(in thousands, except per share amounts) - unaudited
For the Three Months Ended December 31, |
For the Twelve Months Ended December 31, |
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2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues |
$ | 11,843 | $ | 12,032 | $ | 42,675 | $ | 43,329 | ||||||||
Cost of revenues |
2,370 | 2,337 | 9,707 | 8,448 | ||||||||||||
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Gross profit |
9,473 | 9,695 | 32,968 | 34,881 | ||||||||||||
Operating expenses: |
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Selling and marketing |
3,020 | 4,058 | 15,675 | 16,666 | ||||||||||||
Research and development |
4,114 | 5,645 | 21,305 | 24,767 | ||||||||||||
General and administrative |
3,840 | 4,547 | 18,216 | 20,211 | ||||||||||||
Restructuring expense |
| | 5,602 | 238 | ||||||||||||
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Total operating expenses |
10,974 | 14,250 | 60,798 | 61,882 | ||||||||||||
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Operating loss |
(1,501 | ) | (4,555 | ) | (27,830 | ) | (27,001 | ) | ||||||||
Non-operating income: |
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Change in fair value of contingent liability |
| | | 1,210 | ||||||||||||
Interest and other income, net |
3 | 10 | 30 | 94 | ||||||||||||
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Loss before provision for income taxes |
(1,498 | ) | (4,545 | ) | (27,800 | ) | (25,697 | ) | ||||||||
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Provision for income tax expense (benefit) |
4 | (402 | ) | 153 | (234 | ) | ||||||||||
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Net loss |
$ | (1,502 | ) | $ | (4,143 | ) | $ | (27,953 | ) | $ | (25,463 | ) | ||||
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Other comprehensive income (loss), before tax: |
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Unrealized holding gains (losses) on available-for-sale securities |
3 | (12 | ) | 7 | 33 | |||||||||||
Income tax expense related to items of other comprehensive income |
| | | 6 | ||||||||||||
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Other comprehensive income (loss), net of tax |
3 | (12 | ) | 7 | 27 | |||||||||||
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Comprehensive loss |
$ | (1,499 | ) | $ | (4,155 | ) | $ | (27,946 | ) | $ | (25,436 | ) | ||||
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Loss per share: |
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Basic and diluted |
$ | (0.04 | ) | $ | (0.12 | ) | $ | (0.76 | ) | $ | (0.71 | ) | ||||
Weighted average shares outstanding: |
||||||||||||||||
Basic and diluted |
37,027 | 35,882 | 36,982 | 35,849 |
Smith Micro Software Fourth Quarter 2013 Financial Results | Page 6 of 6 |
Smith Micro Software, Inc.
Consolidated Balance Sheets
(in thousands)
December 31, 2013 |
December 31, 2012 |
|||||||
(unaudited) | (audited) | |||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash & cash equivalents |
$ | 11,763 | $ | 18,873 | ||||
Short term investments |
3,078 | 13,328 | ||||||
Accounts receivable, net |
7,563 | 8,953 | ||||||
Income tax receivable |
699 | 681 | ||||||
Inventory, net |
167 | 176 | ||||||
Prepaid and other assets |
871 | 903 | ||||||
Deferred tax asset |
152 | 89 | ||||||
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Total current assets |
24,293 | 43,003 | ||||||
Equipment & improvements, net |
7,023 | 11,211 | ||||||
Other assets |
222 | 181 | ||||||
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TOTAL ASSETS |
$ | 31,538 | $ | 54,395 | ||||
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LIABILITIES & STOCKHOLDERS EQUITY |
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Current Liabilities: |
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Accounts payable |
$ | 1,632 | $ | 1,978 | ||||
Accrued liabilities |
7,734 | 4,829 | ||||||
Deferred revenue |
464 | 1,436 | ||||||
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Total current liabilities |
9,830 | 8,243 | ||||||
Long-term liabilities |
3,383 | 3,399 | ||||||
Deferred tax liability |
154 | 91 | ||||||
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Total non-current liabilities |
3,537 | 3,490 | ||||||
Stockholders Equity: |
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Common stock |
37 | 36 | ||||||
Additional paid in capital |
214,619 | 211,165 | ||||||
Accumulated comprehensive deficit |
(196,485 | ) | (168,539 | ) | ||||
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Total stockholders equity |
18,171 | 42,662 | ||||||
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TOTAL LIABILITIES & STOCKHOLDERS EQUITY |
$ | 31,538 | $ | 54,395 | ||||
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