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Smith Micro Software, Inc. (SMSI) SEC Filing 8-K Material Event for the period ending Wednesday, May 4, 2022

Smith Micro Software Inc

CIK: 948708 Ticker: SMSI

Exhibit 99.1


 

 

IR INQUIRIES:

Charles Messman

Investor Relations

949-362-5800

IR@smithmicro.com

 

 

Smith Micro Reports First Quarter 2022 Financial Results

 

 

PITTSBURGH, PA, May 4, 2022 – Smith Micro Software, Inc. (NASDAQ: SMSI

) (“Smith Micro” or the “Company”) today reported financial results for its first quarter ended March 31, 2022.

“Our efforts in the first quarter, highlighted by the successful launch of SafePath® 7 at a Tier One U.S wireless carrier, are expected to be catalysts to support and grow our revenues in future periods,” said William W. Smith, Jr., President and CEO of Smith Micro Software. “We continue to invest in the critical development resources that we believe will pave the way for successful migration to the SafePath platform at our other carrier customers and further position us for success.”

“We believe Smith Micro to be the clear leader in family safety applications for the wireless carrier space and anticipate that we will be able to leverage this position to open up an even larger market opportunity for us with SafePath Home, SafePath Drive, and SafePath IOT,” Smith continued.

First Quarter 2022 Financial Results

Smith Micro reported revenue of $12.7 million for the quarter ended March 31, 2022, compared to $11.4 million reported in the quarter ended March 31, 2021.

Gross profit for the quarter ended March 31, 2022 was $9.1 million, compared to $9.8 million for the quarter ended March 31, 2021.

Gross profit as a percentage of revenue was 71 percent for the quarter ended March 31, 2022, compared to 86 percent for the quarter ended March 31, 2021.


Smith Micro Software First Quarter 2022 Financial Results

Page 2

 

GAAP net loss for the quarter ended March 31, 2022 was $7.0 million, or $0.13 loss per share, compared to GAAP net loss of $3.2 million, or $0.07 loss per share, for the same period in 2021.

Non-GAAP net loss for the quarter ended March 31, 2022 was $4.3 million, or $0.08 loss per share, compared to non-GAAP net income of $0.7 million, or $0.02 diluted earnings per share, for the quarter ended March 31, 2021. Non-GAAP net (loss) income excludes stock-based compensation, amortization of intangible assets, and acquisition costs.

Total cash and cash equivalents as of March 31, 2022 were $9.8 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, 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, May 4, 2022, at 4:30 p.m. ET, to discuss the Company’s first 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. In addition, the conference call will be available on the Smith Micro website in the Investor Relations section.


Smith Micro Software First 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, the impact of the COVID-19 pandemic on our business and financial results, delays in adoption of our products and services by our customers and their end users, 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, customer acceptance and timing of deployment of those technologies, and our ability to compete effectively with other software and technology companies. 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 First Quarter 2022 Financial Results

Page 4

 

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

unaudited

 

 

audited

 

 

March 31,

 

 

December 31,

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

9,831

 

 

$

16,078

 

Accounts receivable, net

 

12,058

 

 

 

10,590

 

Prepaid expenses and other current assets

 

2,197

 

 

 

1,988

 

  Total current assets

 

24,086

 

 

 

28,656

 

Equipment & improvements, net

 

2,407

 

 

 

2,698

 

Right-of-use assets

 

5,372

 

 

 

5,710

 

Other assets

 

616

 

 

 

620

 

Intangible assets, net

 

40,987

 

 

 

42,631

 

Goodwill

 

35,041

 

 

 

35,041

 

TOTAL ASSETS

$

108,509

 

 

$

115,356

 

 

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

  Accounts payable

$

3,148

 

 

$

3,301

 

  Accrued payroll and benefits

 

4,026

 

 

 

4,055

 

  Current operating lease liabilities

 

1,401

 

 

 

1,400

 

  Other accrued liabilities

 

722

 

 

 

436

 

  Deferred revenue

 

45

 

 

 

176

 

   Total current liabilities

 

9,342

 

 

 

9,368

 

Noncurrent Liabilities:

 

 

 

 

 

 

 

  Operating lease liabilities

 

4,072

 

 

 

4,467

 

  Deferred rent

 

795

 

 

 

844

 

  Deferred tax liability, net

 

117

 

 

 

117

 

   Total non-current liabilities

 

4,984

 

 

 

5,428

 

Stockholders' Equity:

 

 

 

 

 

 

 

  Common stock

 

55

 

 

 

54

 

  Additional paid in capital

 

353,403

 

 

 

352,779

 

  Accumulated comprehensive deficit

 

(259,275

)

 

 

(252,273

)

   Total stockholders' equity

 

94,183

 

 

 

100,560

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

108,509

 

 

$

115,356

 

 


Smith Micro Software First Quarter 2022 Financial Results

Page 5

 

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

Consolidated Statements of Operations

 

 

 

 

 

 

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

unaudited

 

 

For the Three Months

 

 

Ended March 31,

 

 

2022

 

 

2021

 

Revenues

$

12,735

 

 

$

11,381

 

Cost of revenues

 

3,637

 

 

 

1,545

 

Gross profit

 

9,098

 

 

 

9,836

 

Operating expenses:

 

 

 

 

 

 

 

Selling and marketing

 

2,985

 

 

 

2,244

 

Research and development

 

7,402

 

 

 

4,873

 

General and administrative

 

4,045

 

 

 

3,658

 

Amortization of intangible assets

 

1,645

 

 

 

2,298

 

Total operating expenses

 

16,077

 

 

 

13,073

 

Operating loss

 

(6,979

)

 

 

(3,237

)

Other income (expense):

 

 

 

 

 

 

 

Interest (expense) income, net

 

(4

)

 

 

8

 

Other income, net

 

 

 

 

4

 

Loss before provision for income taxes

 

(6,983

)

 

 

(3,225

)

Provision for income tax expense

 

19

 

 

 

 

Net loss

$

(7,002

)

 

$

(3,225

)

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

  Basic and diluted

$

(0.13

)

 

$

(0.07

)

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

  Basic and diluted

 

54,501

 

 

 

43,368

 

 

 



Smith Micro Software First Quarter 2022 Financial Results

Page 6

 

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

unaudited

 

 

 

For the Three Months

 

 

 

Ended March  31,

 

 

 

2022

 

 

2021

 

Operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(7,002

)

 

$

(3,225

)

Adjustments to reconcile net loss to net cash

   (used in) provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,998

 

 

 

2,497

 

Non-cash lease expense

 

 

338

 

 

 

307

 

Provision for doubtful accounts and other adjustments to accounts receivable

 

 

5

 

 

 

(3

)

Provision for excess and obsolete inventory

 

 

 

 

 

(97

)

Stock based compensation

 

 

1,065

 

 

 

1,016

 

Changes in operating accounts:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(1,472

)

 

 

4,018

 

Prepaid expenses and other assets

 

 

(218

)

 

 

381

 

Accounts payable and accrued liabilities

 

 

(1,172

)

 

 

(649

)

Deferred revenue

 

 

(131

)

 

 

(545

)

Net cash (used in) provided by operating activities

 

 

(6,589

)

 

 

3,700

 

Investing activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(63

)

 

 

(190

)

Other investing activities

 

 

12

 

 

 

11

 

Net cash used in investing activities

 

 

(51

)

 

 

(179

)

Financing activities:

 

 

 

 

 

 

 

 

Proceeds from common stock offering, net of offering expenses

 

 

 

 

 

59,898

 

Proceeds from exercise of common stock warrants

 

 

 

 

 

40

 

Proceeds from financing arrangements

 

 

541

 

 

 

 

Repayments of financing arrangements

 

 

(181

)

 

 

 

Other financing activities

 

 

33

 

 

 

34

 

Net cash provided by financing activities

 

 

393

 

 

 

59,972

 

Net (decrease) increase in cash and cash equivalents

 

 

(6,247

)

 

 

63,493

 

Cash and cash equivalents, beginning of period

 

 

16,078

 

 

 

25,754

 

Cash and cash equivalents, end of period

 

$

9,831

 

 

$

89,247

 

 

 

 

 

 

 

 

 

 

 



Smith Micro Software First Quarter 2022 Financial Results

Page 7

 

 

 

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP to Non-GAAP Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data) - unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

Stock

Compensation

 

 

 

 

Intangibles

Amortization

 

 

Acquisition Costs

 

 

 

 

 

Non-

GAAP

 

Three Months Ended 3/31/2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Gross profit

$

9,098

 

 

$

-

 

 

 

 

$

-

 

 

$

-

 

 

 

 

 

$

9,098

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Selling and marketing expenses

 

2,985

 

 

 

(83

)

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

2,902

 

  Research and development expenses

 

7,402

 

 

 

(261

)

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

7,141

 

  General and administrative expenses

 

4,045

 

 

 

(721

)

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

3,324

 

  Amortization of intangible assets

 

1,645

 

 

 

-

 

 

 

 

 

(1,645

)

 

 

-

 

 

 

 

 

 

-

 

Total operating expenses

 

16,077

 

 

 

(1,065

)

 

 

 

 

(1,645

)

 

 

-

 

 

 

 

 

 

13,367

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  (Loss) income before provision for income taxes

 

(6,983

)

 

 

1,065

 

 

 

 

 

1,645

 

 

 

-

 

 

 

 

 

 

(4,273

)

  Net (loss) income

 

(7,002

)

 

 

1,065

 

 

 

 

 

1,645

 

 

 

-

 

 

 

 

 

 

(4,292

)

  (Loss) earnings per share: basic and diluted

 

(0.13

)

 

 

0.02

 

 

 

 

 

0.03

 

 

 

-

 

 

 

 

 

 

(0.08

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 3/31/2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Gross profit

$

9,836

 

 

$

-

 

 

 

 

$

-

 

 

$

-

 

 

 

 

 

$

9,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Selling and marketing expenses

 

2,244

 

 

 

(189

)

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

2,055

 

  Research and development expenses

 

4,873

 

 

 

(193

)

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

4,680

 

  General and administrative expenses

 

3,658

 

 

 

(634

)

 

 

 

 

-

 

 

 

(611

)

 

 

 

 

 

2,413

 

  Amortization of intangible assets

 

2,298

 

 

 

-

 

 

 

 

 

(2,298

)

 

 

-

 

 

 

 

 

 

-

 

Total operating expenses

 

13,073

 

 

 

(1,016

)

 

 

 

 

(2,298

)

 

 

(611

)

 

 

 

 

 

9,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before provision for income taxes

 

(3,225

)

 

 

1,016

 

 

 

 

 

2,298

 

 

 

611

 

 

 

 

 

 

700

 

  Net (loss) income

 

(3,225

)

 

 

1,016

 

 

 

 

 

2,298

 

 

 

611

 

 

 

 

 

 

700

 

  (Loss) earnings per share: basic and diluted

 

(0.07

)

 

 

0.02

 

 

 

 

 

0.05

 

 

 

0.01

 

 

 

 

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: (Loss) earnings per share: basic and diluted - may be impacted by rounding to allow rows to calculate.

 

 

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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: 0001564590-22-017904
Submitted to the SEC: Wed May 04 2022 5:23:03 PM EST
Accepted by the SEC: Wed May 04 2022
Period: Wednesday, May 4, 2022
Industry: Prepackaged Software
Events:
  1. Earnings Release
  2. Financial Exhibit
  3. Regulated Disclosure

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