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.”
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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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