Exhibit 99.1
Smith Micro Announces 2003 Year-End Results
First Quarter 2004 Brightened With $1Million Backlog
ALISO VIEJO, Calif., Feb. 5 /PRNewswire-FirstCall/ -- 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 year-end 2003 results.
The company reported net revenues for the quarter ended December 31, 2003,
of $1.6 million, compared to $1.8 million recorded in the fourth quarter of
2002. The company's net loss of $325,000 in the fourth quarter of 2003
resulted in a net loss of $.02 per basic and diluted share, compared to a net
loss of $286,000 in the fourth quarter of 2002 or a net loss of $.02 per basic
and diluted share after a non-recurring tax benefit.
"The bright side is that we have a $1 million backlog situation for the
first quarter 2004 and either have fulfilled the orders already or will do so
before the end of the quarter," said William W. Smith, Jr., President and
Chief Executive Officer. "A backlog like this is not necessarily indicative
of trends in our business and this is particularly true in OEM business
models, like ours, where order patterns tend to be sporadic and likely to come
in all at once, which causes us to have to prioritize shipments," Mr. Smith
continued.
"As I indicated in last quarter's announcement, the wireless market is an
emerging market but we still see indications that it will grow over time as we
have seen with some of the wireless leaders showing growth in their various
wireless businesses," 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, February 5, 2004. Investors may
access the conference call over the Internet via the company's website
www.smithmicro.com or at
http://www.firstcallevents.com/service/ajwz398302680gf12.html .
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(R) 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, 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 Software, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
December 31
(unaudited)
2003 2002
Net Revenues:
Products $1,353 $1,582
Services 209 193
Total Net Revenues 1,562 1,775
Cost of Revenues:
Products 301 309
Services 81 122
Total Cost of Revenues 382 431
Gross Margin 1,180 1,344
Operating Expenses:
Selling & Marketing 359 427
Research & Development 627 599
General & Administrative 512 603
Total Operating Expenses 1,498 1,629
Operating Loss (318) (285)
Interest Income 10 13
Interest & Other Expenses (17) (14)
Loss Before Income Tax (325) (286)
Income Tax Expense (Benefit) -- --
Net Loss $325 $286
Net Loss per share,
basic and diluted $0.02 $0.02
Weighted average shares
outstanding, basic and diluted 16,946 16,235
Smith Micro Software, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Twelve Months Ended
December 31
(unaudited)
2003 2002
Net Revenues:
Products $6,291 $6,029
Services 925 1,102
Total Net Revenues 7,216 7,131
Cost of Revenues:
Products 1,350 1,420
Services 321 782
Total Cost of Revenues 1,671 2,202
Gross Margin 5,545 4,929
Operating Expenses:
Selling & Marketing 1,666 2,175
Research & Development 2,506 2,162
General & Administrative 2,258 2,316
Total Operating Expenses 6,430 6,653
Operating Loss (885) (1,724)
Interest Income 37 45
Interest & Other Expenses (72) (71)
Loss Before Income Tax (920) (1,750)
Income Tax Expense (Benefit) 3 (1,062)
Net Loss $923 $688
Net Loss per share,
basic and diluted $0.06 $0.04
Weighted average shares
outstanding, basic and diluted 16,511 16,235
Smith Micro Software, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2003 2002
(unaudited) (unaudited)
ASSETS
Current Assets:
Cash & Cash Equivalents $3,722 $3,627
Accounts Receivable, Net 741 633
Inventory, Net 22 45
Prepaids & Other Assets 204 263
Total Current Assets 4,689 4,568
Equipment & Improvements, Net 70 220
Intangible Assets, Net 40 224
Goodwill 1,715 1,715
Other Assets 73 39
TOTAL ASSETS $6,587 $6,766
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $538 $445
Accrued Liabilities 459 709
Total Current Liabilities 997 1,154
Common Stock 17 16
Additional Paid In Capital 25,687 24,787
Accumulated Deficit (20,114) (19,191)
Total Stockholders' Equity 5,590 5,612
TOTAL LIABILITIES & EQUITY $6,587 $6,766
SOURCE Smith Micro Software, Inc.
-0- 02/05/2004
/CONTACT: Bruce T. Quigley, Director of Business Development of Smith
Micro Software, Inc., +1-949-362-5800, bquigley@smithmicro.com ; or media,
Steve Simon of S&S PUBLIC RELATIONS, +1-847-955-0700, steve@sspr.com , for
Smith Micro Software, Inc./
/Web site: http://www.firstcallevents.com/service/ajwz398302680gf12.html /
/Audio: http://www.smithmicro.com /
(SMSI)
CO: Smith Micro Software, Inc.
ST: California
IN: CPR STW TLS PEL MLM ITE OTC
SU: ERN CCA