EXHIBIT 99.1
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.
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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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