Smith Micro Software Reports Record Second Quarter Revenue & Pro Forma Earnings
biz.yahoo.com
Wednesday July 26, 4:05 pm ET
Second Quarter Revenue Increased 277% to $12.6 Million
Pro-Forma Net Income Increased to a Record $3.2 Million
ALISO VIEJO, Calif., July 26 /PRNewswire-FirstCall/ -- Smith Micro Software, Inc. (Nasdaq: SMSI), a developer and marketer of a wide range of software solutions for the wireless market, today reported its 2006 second quarter financial results.
Second Quarter 2006 Key Financial Results:
* Revenue increased to a record $12.6 million, up 27% sequentially and 277%
year-over-year
* Pro forma net income was a record $3.2 million, compared to pro forma net
income of $2.9 million in the first quarter of 2006 and $764,000 in the
second quarter of 2005
* Pro forma earnings were a record $0.13 per fully diluted share on 25.6
million shares, compared to pro forma earnings of $0.12 per fully diluted
share on 24.3 million shares in the first quarter of 2006, and earnings
of $0.03 per fully diluted share on 22.7 million shares in the second
quarter of 2005
* Cash and cash equivalents were $31.3 million, compared to $26.0 million
from March 31, 2006
Second Quarter Financial Discussion:
"Our strong second quarter results reflect strong sales with our OEM partners, specifically our Music Essential kit with Verizon Wireless," said William W. Smith, Jr., President and Chief Executive Officer of Smith Micro Software, Inc. "Our business relationship with Verizon remains very strong as they continue to roll out their wireless broadband products and services. We look forward to a continued strong and productive relationship with Verizon in future years as part of our multi year contract. In addition, we further expanded our customer base within our OEM business with the addition of UTStarcom, which will expand distribution of our QuickLink Mobile into Mexico through IUSACELL, one of Mexico leading wireless carriers."
Mr. Smith continued, "We achieved solid progress for the first half of fiscal 2006. Within our Enterprise software division, we signed three new customers for initial deployment orders and have a significant number of potential customers in the pipeline. Our recent launch of our QuickLink Mobile Music program is currently on track and is being marketed to several wireless carriers worldwide. We currently expect to see multiple orders before the end of this fiscal year from this product offering.
"We also keep moving our StuffIt Wireless initiative forward, as we are now providing both handset resource compression as well as enhanced JPEG compression on selected prototype handsets. In addition, our recent acquisition of PhoTags is now fully integrated and operating at full efficiency, and we have begun marketing our StuffIt Image product suite to the photo sharing market. Finally, we have expanded our international presence with several potential new customers throughout Europe, Asia and Australia."
Smith Micro reported record net revenue of $12.6 million for the second quarter ended June 30, 2006, a 27% increase over revenue of $9.9 million in the first quarter of 2006 and nearly four times the $3.3 million recorded in the second quarter of 2005.
Pro forma net income (which excludes amortization of intangible assets associated with acquisitions and stock compensation related expenses) for the second quarter was $3.2 million, or $0.13 per fully diluted share, compared to pro forma net income of $2.9 million, or $0.12 per fully diluted share in the first quarter of 2006 and net income of $764,000, or $0.03 per share, in the second quarter of 2005.
On a GAAP basis, the company earned $0.04 per fully diluted share for second quarter 2006 as compared to $0.03 per fully diluted share in the second quarter of 2005.
For the six months ended June 30, 2006, the company reported net revenues of $22.4 million or a 319% increase over the $5.4 million reported for the six months ended June 30, 2005. Proforma net income for the first six months of 2006 was $6.1 million, or $0.25 per diluted share as compared to $636,000, or $0.03 per diluted share reported for the six months ended June 30, 2005.
Earnings for the first six months of 2006, on a GAAP basis, were $0.12 per diluted share as compared to $0.03 per diluted share for the six months ended June 30, 2005.
Total cash and equivalents at June 30, 2006 were $31.3 million, compared to $26.0 million for the 2006 first quarter ended March 31, 2006. |
