Last10K.com

Smith Micro Software, Inc. (SMSI) SEC Filing 8-K Material Event for the period ending Thursday, August 11, 2022

Smith Micro Software Inc

CIK: 948708 Ticker: SMSI

Exhibit 99.1
gnyzmd4ldoop000001.jpg
IR INQUIRIES:
Charles Messman
Investor Relations
949-362-5800
IR@smithmicro.com
Smith Micro Reports Second Quarter 2022 Financial Results
PITTSBURGH, PA, August 11, 2022 – Smith Micro Software, Inc. (NASDAQ: SMSI
) (“Smith Micro” or the “Company”) today reported financial results for its second quarter ended June 30, 2022.
“During the second quarter, we made significant progress on several key milestones related to the integration of our prior acquisitions of our two largest competitors. The consolidation of the best features and functionality of each solution into our Digital Family Lifestyle™ Platform has required a substantial investment since their respective acquisitions. I am very pleased that we are quickly approaching the completion of this mission,” said William W. Smith, Jr., President, CEO and Chairman of the Board of Smith Micro.

“With these efforts nearing completion, we expect to move forward with significant reductions in our operating expenses, starting in the third quarter, and accelerating through the remainder of the fiscal year, as we streamline our expenses to return back to more historical levels.”

“We see the enormous opportunity in front of us, not only with the Big 3 Tier 1 mobile operators in the US, but other Tier 1 operators in Europe, and elsewhere around the world, as we move to our next phase of growth on a single platform,” concluded Mr. Smith.
Second Quarter 2022 Financial Results
Smith Micro reported revenue of $12.7 million for the quarter ended June 30, 2022, compared to $15.9 million reported in the quarter ended June 30, 2021.
Gross profit for the quarter ended June 30, 2022 was $9.1 million, compared to $12.6 million for the quarter ended June 30, 2021.
Gross profit as a percentage of revenue was 71 percent for the quarter ended June 30, 2022, compared to 79 percent for the quarter ended June 30, 2021.
GAAP net loss for the quarter ended June 30, 2022 was $8.5 million, or $0.15 loss per share, compared to GAAP net loss of $5.2 million, or $0.10 loss per share, for the same period in 2021.
Non-GAAP net loss for the quarter ended June 30, 2022 was $5.1 million, or $0.09 loss per share, compared to non-GAAP net loss of $0.3 million, or $0.01 loss per share, for the quarter ended June 30, 2021. Non-GAAP net loss excludes stock-based compensation, amortization of intangible assets, personnel severance and reorganization activities, and acquisition costs.


Smith Micro Software Second Quarter 2022 Financial Results
Page 2
Second Quarter Year-to-Date 2022 Financial Results
Smith Micro reported revenue of $25.4 for the six months ended June 30, 2022, compared to $27.3 million reported in the six months ended June 30, 2021.
Gross profit for the six months ended June 30, 2022 was $18.2 million compared to $22.4 million reported for the same period in 2021.
Gross profit as a percentage of revenue was 71 percent for the six months ended June 30, 2022 compared to 82 percent for the six months ended June 30, 2021.
GAAP net loss for the six months ended June 30, 2022 was $15.5 million, or $0.28 loss per share, compared to GAAP net loss of $8.4 million, or $0.17 loss per share, for the same period in 2021.
Non-GAAP net loss (which excludes stock-based compensation, amortization of intangible assets, personnel severance and reorganization activities, and acquisition costs) for the six months ended June 30, 2022 was $9.4 million, or $0.17 diluted loss per share, compared to non-GAAP net income of $0.4 million, or $0.01 earnings per share, for the six months ended June 30, 2021.
Total cash and cash equivalents as of June 30, 2022 were $5.4 million and available borrowing capacity under the Company’s revolving credit facility was $7.0 million.

To supplement our financial information presented in accordance with GAAP, the Company considers, and has included in this press release, certain non-GAAP financial measures and a non-GAAP reconciliation from GAAP gross profit, net (loss) income before taxes, and net (loss) income to the following non-GAAP metrics: non-GAAP net (loss) income, and non-GAAP diluted earnings (loss) per share in the presentation of financial results in this press release. Management believes this non-GAAP presentation may be more meaningful in analyzing our income generation and has therefore excluded the following items from GAAP earnings calculations: stock-based compensation, amortization of intangible assets, personnel severance and reorganization activities, and acquisition costs. Additionally, since the Company currently has federal and state net operating loss carryforwards that can be utilized to reduce future cash payments for income taxes, these non-GAAP adjustments have not been tax effected, and the resulting income tax expense reflects actual taxes paid or accrued during each period. This presentation may be considered more indicative of our ongoing operational performance. The table below presents the differences between non-GAAP net (loss) income and net (loss) income 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-GAAP financial measures as reported by Smith Micro may not be comparable to similarly titled amounts reported by other companies.
Investor Conference Call
Smith Micro will hold an investor conference call today, August 11, 2022, at 4:30 p.m. ET, to discuss the Company’s second quarter 2022 financial results. To access the call, dial 1-844-701-1164; international participants can call 1-412-317-5492. A passcode is not required to join the call; ask the operator to be placed into the Smith Micro conference. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. An internet webcast is available at https://event.choruscall.com/mediaframe/webcast.html?webcastid=Gxhhaskc. In addition, the conference call will be available on the Smith Micro website in the Investor Relations section.


Smith Micro Software Second Quarter 2022 Financial Results
Page 3
About Smith Micro Software, Inc.
Smith Micro develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers and cable MSOs around the world. From enabling the family digital lifestyle to providing powerful voice messaging capabilities, our solutions enrich today’s connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer IoT devices. The Smith Micro portfolio also includes a wide range of products for creating, sharing, and monetizing rich content, such as visual voice messaging, optimizing retail content display and performing analytics on any product set. For more information, visit www.smithmicro.com.
Smith Micro, the Smith Micro logo and SafePath are registered trademarks or trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective owners.
Forward-Looking Statements
Certain statements in this press release are, and certain statements on the related conference call may be, forward-looking statements regarding future events or results within the meaning of the Private Securities Litigation Reform Act, including statements related to our financial prospects and other projections of our outlook or performance and our future business plans, and statements using such words as “expect,” “anticipate,” “believe,” “plan,” “intend,” “could,” “will” and other similar expressions. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Among the important factors that could cause or contribute to such differences are customer concentration, given that the majority of our sales depend on a few large customer relationships, delay or failure of our customers to accept and deploy our products and services or new or upgraded versions thereof, delay or failure of our customers’ end users to adopt our products and services or new or upgraded versions thereof, the impact of the COVID-19 pandemic on our business and financial results, changes in demand for our products from our customers and their end users, changes in requirements for our products imposed by our customers or by the third party providers of software and/or platforms that we use, our ability to effectively integrate, market and sell acquired product lines, new and changing technologies and customer acceptance and timing of deployment of those technologies, our ability to compete effectively with other software and technology companies, and the existence and terms of our convertible notes and related agreements, including that they may restrict our ability to obtain additional financing, and adversely affect our business, financial condition and cash flows from operations in the future. These and other factors discussed in our filings with the Securities and Exchange Commission, including our 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, and we do not undertake any obligation to update these statements to reflect events or circumstances occurring after the date of this release.




Smith Micro Software Second Quarter 2022 Financial Results
Page 4
Smith Micro Software, Inc.  
Consolidated Balance Sheets  
(in thousands except share and par value data)  
 
 June 30,
2022
December 31,
2021
 (unaudited)(audited)
Assets
Current assets:
Cash and cash equivalents$5,357 $16,078 
Accounts receivable, net of allowance for doubtful accounts and other
 adjustments of $3 and $2 (2022 and 2021, respectively)
11,562 10,590 
Prepaid expenses and other current assets2,514 1,988 
Total current assets19,433 28,656 
Equipment and improvements, net2,129 2,698 
Right-of-use assets4,291 4,866 
Other assets541 620 
Intangible assets, net39,410 42,631 
Goodwill35,041 35,041 
Total assets$100,845 $114,512 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$3,774 $3,301 
Accrued payroll and benefits3,759 4,055 
Current operating lease liabilities1,400 1,400 
Other accrued liabilities1,227 612 
Total current liabilities10,160 9,368 
Non-current liabilities:
Operating lease liabilities3,640 4,467 
Deferred tax liabilities, net117 117 
Total non-current liabilities3,757 4,584 
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.001 per share; 100,000,000 shares authorized;
 55,121,767 and 54,259,390 shares issued and outstanding (2022 and
 2021, respectively)
55 54 
Additional paid-in capital354,641 352,779 
Accumulated comprehensive deficit(267,768)(252,273)
Total stockholders’ equity86,928 100,560 
Total liabilities and stockholders' equity$100,845 $114,512 


Smith Micro Software Second Quarter 2022 Financial Results
Page 5
Smith Micro Software Inc.
Consolidated Statement of Operations
(in thousands except share data)
For the Three Months Ended
June 30,
For the Six Months Ended
June 30,
2022202120222021
(unaudited)(unaudited)(unaudited)(unaudited)
Revenues$12,674 $15,919 $25,409 $27,300 
Cost of revenues3,617 3,358 7,253 4,903 
Gross profit9,057 12,561 18,156 22,397 
Operating expenses:
Selling and marketing3,720 3,117 6,706 5,361 
Research and development8,213 7,063 15,615 11,936 
General and administrative4,026 4,946 8,073 8,604 
Amortization of intangible assets1,577 2,645 3,221 4,943 
Total operating expenses17,536 17,771 33,615 30,844 
Operating loss(8,479)(5,210)(15,459)(8,447)
Other income (expense):
Interest income (expense), net16 (2)24 
Other income, net15 15 
Loss before provision for income taxes(8,462)(5,189)(15,446)(8,414)
Provision for income tax expense31 14.00 50 14 
Net loss$(8,493)$(5,203)$(15,496)$(8,428)
Loss per share:
Basic and diluted$(0.15)$(0.10)$(0.28)$(0.17)
Weighted average shares outstanding:
Basic and diluted55,183 53,017 55,844 48,219 


Smith Micro Software Second Quarter 2022 Financial Results
Page 6
Smith Micro Software, Inc.  
Consolidated Statements of Cash Flows  
(in thousands)  
 
 For the Three Months Ended
June 30,
For the Six Months Ended
June 30,
 2022202120222021
 (unaudited)(unaudited)(unaudited) (unaudited)
Operating activities:
Net loss$(8,493)$(5,203)$(15,496)$(8,428)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization1,904 2,984 3,902 5,481 
Non-cash lease expense335 311 673 618 
Provision for doubtful accounts(5)— — (3)
Provision for excess and obsolete inventory— — — (97)
Stock based compensation1,688 1,279 2,754 2,295 
Changes in operating accounts: 
Accounts receivable497 (378)(975)3,640 
Prepaid expenses and other assets(309)(606)(527)(225)
Accounts payable and accrued liabilities(640)(428)(1,812)(1,077)
Deferred revenue(15)(163)(146)(708)
Net cash (used in) provided by operating activities(5,038)(2,204)(11,627)1,496 
Investing activities:
Acquisitions, net— (56,865)— (56,865)
Capital expenditures(49)(146)(112)(336)
Other investing activities71 58 83 69 
Net cash provided by (used in) investing activities22 (56,953)(29)(57,132)
Financing activities:
Proceeds from common stock offering, net of offering expenses— (187)— 59,711 
Proceeds from exercise of common stock warrants— — — 40 
Proceeds from financing arrangements750 — 1,291 — 
Repayments of financing arrangements(210)— (391)— 
Other financing activities33 35 67 
Net cash provided by (used in) financing activities542 (154)935 59,818 
Net (decrease) increase in cash and cash equivalents(4,474)(59,311)(10,721)4,182 
Cash and cash equivalents, beginning of period$9,831 $89,247 $16,078 $25,754 
Cash and cash equivalents, end of period$5,357 $29,936 $5,357 $29,936 


Smith Micro Software Second Quarter 2022 Financial Results
Page 7
Smith Micro Software, Inc.
Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share data) - unaudited
 GAAPStock CompensationIntangibles AmortizationPersonnel Severance and Reorganization ActivitiesAcquisition CostsNon-GAAP
Three Months Ended June 30, 2022    
Gross profit$9,057  $(1)$— $— $— $9,056 
Selling and marketing expenses3,720  (73)— (721)— 2,926 
Research and development expenses8,213  (268)— — — 7,945 
General and administrative expenses4,026  (767)— — — 3,259 
Amortization of intangible assets1,577  — (1,577)— — — 
Total operating expenses17,536  (1,108)(1,577)(721)— 14,130 
 
(Loss) income before provision for income taxes(8,462) 1,109 1,577 721 — (5,055)
Net (loss) income(8,493) 1,109 1,577 721 — (5,086)
(Loss) earnings per share: basic and diluted(0.15) 0.02 0.03 0.01 — (0.09)
      
Three Months Ended June 30, 2021    
Gross profit$12,561  $— $— $— $— $12,561 
Selling and marketing expenses3,117  (236)— — — 2,881 
Research and development expenses7,063  (241)— — — 6,822 
General and administrative expenses4,946  (802)— — (972)3,172 
Amortization of intangible assets2,645  — (2,645)— — — 
Total operating expenses17,771  (1,279)(2,645)— (972)12,875 
 — 
(Loss) income before provision for income taxes(5,189) 1,279 2,645 — 972 (293)
Net (loss) income(5,203) 1,279 2,645 — 972 (307)
(Loss) earnings per share: basic and diluted(0.10) 0.02 0.05 — 0.02 (0.01)
Note: (Loss) earnings per share: basic and diluted - may be impacted by rounding to allow rows to calculate.


Smith Micro Software Second Quarter 2022 Financial Results
Page 8
Smith Micro Software, Inc.
Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share data) - unaudited
GAAPStock CompensationIntangibles AmortizationPersonnel Severance and Reorganization ActivitiesAcquisition CostsNon-GAAP
Six Months Ended June 30, 2022    
Gross profit$18,156 $(1)$— $— $— $18,155 
Selling and marketing expenses6,706 (157)— (721)— 5,828 
Research and development expenses15,615 (529)— — — 15,086 
General and administrative expenses8,073 (1,488)— — — 6,585 
Amortization of intangible assets3,221 — (3,221)— — — 
Total operating expenses33,615 (2,174)(3,221)(721)— 27,499 
(Loss) income before provision for income taxes(15,446)2,175 3,221 721 — (9,329)
Net (loss) income(15,496)2,175 3,221 721 — (9,379)
(Loss) earnings per share: basic and diluted(0.28)0.04 0.06 0.01 — (0.17)
Six Months Ended June 30, 2021
Gross profit$22,397 $— $— $— $— $22,397 
Selling and marketing expenses5,361 (426)— — — 4,935 
Research and development expenses11,936 (434)— — — 11,502 
General and administrative expenses8,604 (1,435)— — (1,583)5,586 
Amortization of intangible assets4,943 — (4,943)— — — 
Total operating expenses30,844 (2,295)(4,943)— (1,583)22,023 
— 
(Loss) income before provision for income taxes(8,414)2,295 4,943 — 1,583 407 
Net (loss) income(8,428)2,295 4,943 — 1,583 393 
(Loss) earnings per share: basic and diluted(0.17)0.04 0.09 — 0.03 0.01 
Note: (Loss) earnings per share: basic and diluted - may be impacted by rounding to allow rows to calculate.

View differences made from one to another to evaluate Smith Micro Software Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Smith Micro Software Inc.

Continue

Assess how Smith Micro Software Inc's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Smith Micro Software Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2022 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Financial Statements, Disclosures and Schedules

Inside this 8-K Corporate News

Material Contracts, Statements, Certifications & more

Smith Micro Software Inc provided additional information to their SEC Filing as exhibits

Ticker: SMSI
CIK: 948708
Form Type: 8-K Corporate News
Accession Number: 0000948708-22-000012
Submitted to the SEC: Thu Aug 11 2022 4:01:14 PM EST
Accepted by the SEC: Thu Aug 11 2022
Period: Thursday, August 11, 2022
Industry: Prepackaged Software
Events:
  1. Earnings Release
  2. Financial Exhibit
  3. Regulated Disclosure

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/smsi/0000948708-22-000012.htm