Smith Micro Software Reports Record Third Quarter Revenue
biz.yahoo.com
Wednesday November 1, 4:13 pm ET
Third Quarter Revenue Increased 115% to $14.8 Million; Pro Forma Net Income Increased to a Record $4.3 Million
ALISO VIEJO, Calif., Nov. 1 /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 third quarter financial results.
Third Quarter 2006 Key Financial Results:
* Revenue increased to a record $14.8 million, up 18% sequentially and
115% year-over-year.
* Pro Forma Net Income was a record $4.3 million, compared to pro forma
net income of $2.9 million in the first quarter of 2006, pro forma net
income of $3.2 million in the second quarter of 2006, and pro forma net
income of $2.3 million in the third quarter of 2005.
* Pro Forma earnings were a record $0.17 per fully diluted share on
25.8 million shares, compared to pro forma earnings of $0.13 per fully
diluted share in the second quarter of 2006 and compared to pro forma
earnings of $0.10 per fully diluted share in the third quarter of 2005.
* Pro Forma Gross Profit increased to $9.0 million, up 18.4% sequentially
and 49.6% over Pro Forma third quarter 2005.
* Cash and cash equivalents increased significantly to $34.9 million,
compared to $21.2 million at year-end in 2005.
Third Quarter Financial Discussion:
"We are very pleased to report our sixth consecutive quarter of record top line and bottom line results," said William W. Smith, Jr., President and Chief Executive Officer of Smith Micro Software. "Our business continues to prosper across all of our platforms and in our OEM business division we saw a return to a more normalized growth trend for our broadband QuickLink Mobile connectivity product, which helped drive the increase in gross margins for the quarter. We also experienced significant growth with our Music Essential kit, specifically with Verizon Wireless, where we benefited from a strong marketing push and launch of the LG VX8500 Chocolate phone."
Mr. Smith continued, "We launched our QuickLink Music product during the quarter, our new music suite which offers a robust experience allowing wireless carriers the ability to brand their multimedia service offerings from online stores to mobile handsets. It also gives the end users a streamlined installation process, and the seamless operability to integrate music capable phones with a PC. We believe this is a strong launching pad, as we look to expand our wireless carrier customer base with this product in the coming months."
"Our StuffIt Wireless program continues progress on track, with several ongoing prototypes in testing with large handset manufacturers, and a wireless carrier. We see this solution becoming more relevant to the market place as the market continues to evolve every day, with more data moving through the spectrum including music, video, and photos. Specifically, we anticipate video becoming more prominent player as we look to 2007." Mr. Smith continued, "We believe we have positioned the Company very well to benefit from these additional services being offered by the wireless carriers."
Mr. Smith concluded, "In conclusion we remain optimistic about our business outlook, we expect to see a continuation of growth, and believe our recent music success can continue to grow with the launch of QuickLink Music. We believe the company is positioned well as we strive to be a leader in the wireless software space."
Smith Micro reported record net revenue of $14.8 million for the third quarter ended September 30, 2006, an 18% increase over revenue of $12.5 million in the second quarter of 2006 and an increase of 115% when compared to the $6.9 million recorded in the third quarter of 2005.
Pro forma net income (which excludes amortization of intangible assets associated with acquisitions and stock compensation related expenses) for the third quarter was $4.3 million, or $0.17 per fully diluted share, compared to pro forma net income of $2.3 million or $0.10 per fully diluted share in the third quarter of 2005. Fully diluted shares outstanding as of September 30, 2006 were 25.8 million versus the 23.2 million shares outstanding in the third quarter of 2005.
On a GAAP basis, the company earned $0.09 per fully diluted share for the third quarter of 2006 that compared to $0.08 per fully diluted share in the third quarter of 2005.
For the nine months ended September 30, 2005, the company reported record net revenues of $37.2 million, a 204% increase over the $12.3 million reported for the nine months ended September 30, 2005. Proforma net income for the nine months ended was $10.5 million, or $0.42 per diluted share, an increase of 261% when compared to the proforma net income of $2.9 million or $0.13 per fully diluted share reported for the nine months ended September 30, 2005. |
