Smith Micro Reports Fourth Quarter and Fiscal Year 2021 Financial Results|||

PITTSBURGH–(Business organization WIRE)–$SMSI #commsuite–Smith Micro Software, Inc. (NASDAQ: SMSI) (“Smith Micro” or the “Company”) today reported fiscal results for its fourth quarter and financial year ended Dec 31, 2021.

“This past yr’s momentum, spurred by the largest conquering in our history, was truly transformational for Smith Micro, positioning the states for success in 2022 and beyond,” said William Due west. Smith, Jr., President and CEO of Smith Micro Software. “During 2021, nosotros achieved several fundamental milestones across the entire organization building a stronger foundation for ongoing success. In 2021, nosotros added several Tier one carriers to our global digital family condom client base, expanding our leadership past delivering our Family Digital Lifestyle vision to a large and growing market.

“We have gained valuable experience and learned critical lessons over the past twelvemonth that will pave the way for a smooth migration of carriers to the SafePath®
platform, offering a seamless transition for the consumers using these family safety solutions,” Smith connected. “Our heady transformation will carry on through 2022 as nosotros continue to strengthen both our market growth and our partnerships with our valuable carrier customers.”

Quaternary Quarter 2021 Financial Results

Smith Micro reported revenue of $fourteen.7 million for the 4th quarter ended December 31, 2021, compared to $12.4 million reported in the 4th quarter ended December 31, 2020.

Fourth quarter 2021 gross profit was $ten.6 meg compared to $11.0 million reported in the fourth quarter of 2020.

Gross profit every bit a percentage of acquirement was 72 percent for the 4th quarter of 2021 compared to 89 pct for the fourth quarter of 2020.

Mostly accepted accounting principles in the United States (“GAAP”) net loss for the quaternary quarter of 2021 was $4.0 million, or $0.07 loss per share, compared to GAAP net income of $0.6 million, or $0.01 diluted earnings per share, for the 4th quarter of 2020.

Non-GAAP cyberspace loss (which excludes stock-based bounty, amortization of intangibles, CFO transition costs, gain on sale of software production, and acquisition costs) for the fourth quarter of 2021 was $two.4 million, or $0.04 loss on a per share basis, compared to not-GAAP internet income of $ane.four 1000000, or $0.03 diluted earnings per share, for the fourth quarter of 2020.

Fiscal Year 2021 Financial Results

Smith Micro reported revenue of $58.four million for the year ended December 31, 2021, compared to $51.3 1000000 reported in the year ended December 31, 2020.

Gross profit for the year concluded December 31, 2021 was $45.7 million, compared to $46.1 million for the year ended December 31, 2020.

Gross profit every bit a percentage of revenue was 78 percent for the year ended December 31, 2021 compared to xc percent for the year ended Dec 31, 2020.

GAAP cyberspace loss for the twelvemonth ended Dec 31, 2021 was $31.0 1000000, or $0.61 loss per share, compared to GAAP net income of $4.2 million, or $0.10 diluted earnings per share, for the aforementioned period in 2020.

Non-GAAP net loss (which excludes stock-based compensation, amortization of intangibles, CFO transition costs, conquering costs which include changes in fair value of contingent consideration, costs related to the conquering of certain non-evolution intellectual property, and gain on sale of software production) for the yr ended December 31, 2021 was $two.ii million, or $0.04 loss per share, compared to non-GAAP net income of $x.iv meg, or $0.24 diluted earnings per share, for the yr ended December 31, 2020.

Total greenbacks and greenbacks equivalents as of Dec 31, 2021 were $xvi.1 million.

To supplement our fiscal information presented in accordance with GAAP, the Company considers, and has included in this press release, certain not-GAAP fiscal measures and a non-GAAP reconciliation from GAAP gross profit, internet (loss) income earlier taxes, and net (loss) income to the following non-GAAP metrics: not-GAAP net income (loss), and non-GAAP diluted earnings (loss) per share in the presentation of financial results in this press release. Direction believes this non-GAAP presentation may be more meaningful in analyzing our income generation and has therefore excluded the post-obit items from GAAP earnings calculations: stock-based bounty, amortization of intangibles, CFO transition costs, acquisition costs, including changes in fair value of contingent consideration, costs related to the acquisition of certain non-development intellectual holding, and proceeds on sale of software production. Additionally, since the Company currently has federal and country cyberspace operating loss carryforwards that can be utilized to reduce future greenbacks payments for income taxes, these not-GAAP adjustments have not been tax effected, and the resulting income tax expense reflects bodily taxes paid or accrued during each period. This presentation may exist considered more indicative of our ongoing operational functioning. The tabular array below presents the differences betwixt not-GAAP cyberspace income (loss) and net income (loss) 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 not-financial measures as reported past Smith Micro may not be comparable to similarly titled amounts reported past other companies.

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Investor Conference Phone call

Smith Micro will concur an investor conference call today, March x, 2021 at 4:30 p.m. ET, to discuss the Company’s fourth quarter and fiscal 2021 financial results. To access the call, dial i-844-701-1164; international participants tin can telephone call one-412-317-5492. A passcode is not required to join the call; inquire the operator to be placed into the Smith Micro conference. Participants are asked to telephone call the assigned number approximately 10 minutes before the briefing call begins. In improver, the conference call will be available on the Smith Micro website in the Investor Relations section.

Nearly Smith Micro Software, Inc.

Smith Micro develops software to simplify and enhance the mobile feel, providing solutions to some of the leading wireless service providers and cable MSOs around the world. From enabling the family unit digital lifestyle to providing powerful voice messaging capabilities, our solutions enrich today’due south connected lifestyles while creating new opportunities to appoint consumers via smartphones and consumer IoT devices. The Smith Micro portfolio also includes a broad range of products for creating, sharing and monetizing rich content, such equally visual vocalism messaging, optimizing retail content display and performing analytics on any production set up. For more data, visit www.smithmicro.com.

Smith Micro and the Smith Micro logo are registered trademarks or trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective owners.


Forwards-Looking Statements

Sure statements in this press release are, and sure statements on the related conference phone call may be, forward-looking statements regarding future events or results within the significant of the Private Securities Litigation Reform Act, including statements related to our fiscal prospects and other projections of our outlook or performance and our future business plans, and statements using such words as “wait,” “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 forrard-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 affect of the COVID-19 pandemic on our business concern and financial results, delays in adoption of our products and services past our customers and their cease users, changes in demand for our products from our customers and their cease-users, changes in requirements for our products imposed by our customers or by the third party providers of software and/or platforms that we apply, our ability to effectively integrate, market and sell acquired product lines, new and irresolute 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 crusade bodily results to differ materially from those expressed or implied in whatever forward-looking statements. The forward-looking statements independent in this release are made on the footing of the views and assumptions of management, and we do not undertake whatsoever obligation to update these statements to reflect events or circumstances occurring after the date of this release.

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Smith Micro Software, Inc.

Consolidated Balance Sheets

(in thousands)

unaudited

audited

December 31,

December 31,

2021

2020

Assets

Electric current Avails:

Greenbacks & cash equivalents

$

16,078

$

25,754

Accounts receivable, net

10,590

12,347

Prepaid and other avails

1,988

1,189

Total current assets

28,656

39,290

Equipment & improvements, net

two,698

2,170

Correct-of-utilise assets

five,710

5,785

Other avails

620

694

Intangible assets, net

42,631

12,698

Goodwill

35,041

12,266

TOTAL Assets

$

115,356

$

72,903

LIABILITIES & STOCKHOLDERS’ Equity

Current Liabilities:

Accounts payable

$

3,301

$

2,282

Accrued payroll and benefits

4,055

two,867

Current operating lease liabilities

1,400

1,433

Other accrued liabilities

436

216

Deferred revenue

176

ane,572

Total current liabilities

nine,368

8,370

Operating charter liabilities

4,467

4,805

Deferred rent and other long-term liabilities

844

953

Deferred tax liability, net

117

59

Total not-current liabilities

5,428

5,817

Stockholders’ Disinterestedness:

Common stock

54

41

Boosted paid in capital

352,779

279,905

Accumulated comprehensive deficit

(252,273

)

(221,230

)

Full stockholders’ disinterestedness

100,560

58,716

Total LIABILITIES & STOCKHOLDERS’ Equity

$

115,356

$

72,903

Smith Micro Software, Inc.

Consolidated Statements of Operations

(in thousands, except per share data)

unaudited

unaudited

audited

For the Three Months

For the Twelve Months

Concluded December 31,

Concluded Dec 31,

2021

2020

2021

2020

Revenues

$

14,679

$

12,416

$

58,422

$

51,300

Price of revenues

iv,103

1,422

12,698

5,190

Gross profit

ten,576

ten,994

45,724

46,110

Operating expenses:

Selling and marketing

three,153

two,266

11,581

9,096

Research and development

7,137

iv,965

26,197

17,772

Full general and administrative

four,174

3,060

17,920

12,801

Amortization of intangible assets

142

715

eight,100

2,920

Change in fair value of contingent consideration

12,864

Total operating expenses

14,606

11,006

76,662

42,589

Operating (loss) income

(4,030

)

(12

)

(30,938

)

3,521

Not-operating income (expense):

Interest income, cyberspace

ix

ii

34

96

Gain on sale of software product

711

711

Other income (expense), net

69

(5

)

76

(3

)

(Loss) income before provision for income taxes

(3,952

)

696

(xxx,828

)

4,325

Income tax expense

56

116

215

160

Cyberspace (loss) income

$

(4,008

)

$

580

$

(31,043

)

$

four,165

Cyberspace (loss) earnings per share:

Basic

$

(0.07

)

$

0.01

$

(0.61

)

$

0.10

Diluted

$

(0.07

)

$

0.01

$

(0.61

)

$

0.10

Weighted average shares outstanding:

Basic

54,454

41,262

51,232

40,808

Diluted

54,454

43,305

51,232

42,764

Smith Micro Software, Inc.

Consolidated Statements of Cash Flows

(in thousands)

unaudited

unaudited

audited

For the 3 Months

For the Twelve Months

Ended December 30,

Ended December 30,

2021

2020

2021

2020

Operating activities:

Cyberspace (loss) income

$

(4,008

)

$

580

$

(31,043

)

$

4,165

Adjustments to reconcile net (loss) income to net greenbacks

provided by operating activities:

Depreciation and acquittal

$

466

$

906

9,338

3,582

Not-cash hire expense

$

341

$

305

ane,160

1,110

Alter in fair value of contingent consideration

$

$

12,864

Gain on sale of software products

$

$

(711

)

(711

)

Provision for adjustments to accounts receivable and doubtful accounts

$

viii

$

(ane

)

five

(sixty

)

Provision for backlog and obsolete inventory

$

$

(97

)

Gain on disposal of fixed assets

$

(14

)

$

(xiv

)

Stock based compensation

$

i,226

$

812

four,848

iii,064

Deferred income taxes

$

58

$

153

58

153

Changes in operating accounts:

$

$

Accounts receivable

$

1,987

$

(2,428

)

7,938

(1,269

)

Prepaid expenses and other assets

$

(69

)

$

142

(268

)

(388

)

Accounts payable and accrued liabilities

$

(xiv,661

)

$

(121

)

(16,309

)

(one,906

)

Deferred revenue

$

(525

)

$

11

(i,396

)

184

Net cash (used in) provided past operating activities

(15,191

)

(352

)

(12,916

)

7,924

Investing activities:

Acquisitions, net

$

$

(56,865

)

(13,500

)

Gain from sale of software products

$

118

$

367

192

367

Capital letter expenditures

$

(92

)

$

(111

)

(830

)

(1,323

)

Purchase of equity instrument

$

$

(32

)

(225

)

Net greenbacks used in investing activities

26

224

(57,503

)

(14,681

)

Financing activities:

Proceeds from exercise of common stock warrants

$

$

ii,066

4,196

Payments related to contingent consideration

$

(1,136

)

$

(1,136

)

Gain from stock sale for employee stock purchase programme

$

28

$

11

65

29

Gain from exercise of stock options

$

(21

)

$

(i

)

37

18

Gain from common stock offer

$

$

59,711

Net cash provided by financing activities

(one,129

)

x

sixty,743

4,243

Net (decrease) in cash and cash equivalents

(xvi,294

)

(118

)

(nine,676

)

(2,514

)

Cash and cash equivalents, get-go of menses

32,372

25,872

25,754

28,268

Cash and cash equivalents, end of period

$

16,078

$

25,754

$

16,078

$

25,754

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Smith Micro Software, Inc.

Reconciliation of GAAP to Non-GAAP Results

(in thousands, except per share data) – unaudited

GAAP

Stock

Compensation

Intangibles

Amortization

CFO

Transition

Costs

Proceeds on

Sale of

Software

Production

Conquering

Costs

Non-

GAAP

Three Months Ended 12/31/2021

Gross profit

$

10,576

$

$

$

$

$

$

10,576

Selling and marketing expenses

three,153

(239

)

2,914

Research and development

expenses

7,137

(260

)

6,877

General and authoritative

expenses

four,174

(727

)

(179

)

(81

)

three,187

Amortization of intangible avails

142

(142

)

Modify in fair value of contingent

consideration

Total operating expenses

14,606

(1,226

)

(142

)

(179

)

(81

)

12,978

(Loss) income earlier provision for

income taxes

(3,952

)

1,226

142

179

81

(2,324

)

Net (loss) income

(4,008

)

1,226

142

179

81

(two,380

)

(Loss) earnings per share: basic

(0.07

)

0.02

0.00

0.00

0.00

(0.04

)

(Loss) earnings per share: diluted

(0.07

)

0.02

0.00

0.00

0.00

(0.04

)

Iii Months Ended 12/31/2020

Gross profit

$

x,994

$

$

$

$

$

$

10,994

Selling and marketing expenses

2,266

(145

)

2,121

Research and development

expenses

4,965

(147

)

4,818

Full general and administrative

expenses

3,060

(520

)

ii,540

Amortization of intangible avails

715

(715

)

Total operating expenses

11,006

(812

)

(715

)

9,479

Income (loss) before provision for

income taxes

696

812

715

(711

)

1,512

Net income (loss)

580

812

715

(711

)

one,396

Earnings (loss) per share: basic

0.01

0.02

0.02

(0.02

)

0.03

Earnings (loss) per share: diluted

0.01

0.02

0.02

(0.02

)

0.03

Note: Earnings (loss) per share: bones and diluted – may be impacted past rounding to permit rows to calculate.

Smith Micro Software, Inc.

Reconciliation of GAAP to Non-GAAP Results

(in thousands, except per share data) – unaudited

GAAP

Stock

Bounty

Intangibles

Amortization

CFO

Transition

Costs

Acquisition

Costs

Non

Development

Intellectual

Property

Gain on

Sale of

Software

Product

Not-

GAAP

Twelve Months Concluded 12/31/2021

Gross turn a profit

$

45,724

$

i

$

$

$

$

$

$

45,725

Selling and marketing expenses

eleven,581

(901

)

10,680

Research and development

expenses

26,197

(965

)

25,232

Full general and administrative

expenses

17,920

(2,981

)

(322

)

(1,668

)

(1,000

)

xi,949

Amortization of intangible avails

8,100

(8,100

)

Change in fair value of contingent

consideration

12,864

(12,864

)

Total operating expenses

76,662

(four,847

)

(8,100

)

(322

)

(fourteen,532

)

(one,000

)

47,861

(Loss) income before provision for

income taxes

(30,828

)

iv,848

viii,100

322

fourteen,532

1,000

(2,026

)

Cyberspace (loss) income

(31,043

)

four,848

8,100

322

14,532

i,000

(2,241

)

(Loss) earnings per share: basic

(0.61

)

0.09

0.16

0.01

0.28

0.02

(0.04

)

(Loss) earnings per share: diluted

(0.61

)

0.09

0.xvi

0.01

0.28

0.02

(0.04

)

Twelve Months Concluded 12/31/2020

Gross profit

$

46,110

$

$

$

$

$

$

$

46,110

Selling and marketing expenses

nine,096

(549

)

8,547

Research and development

expenses

17,772

(559

)

17,213

General and administrative

expenses

12,801

(1,956

)

(918

)

9,927

Acquittal of intangible assets

2,920

(2,920

)

Full operating expenses

42,589

(three,064

)

(2,920

)

(918

)

35,687

Income (loss) before provision for

income taxes

4,325

three,064

2,920

918

(711

)

10,516

Net income (loss)

4,165

three,064

2,920

918

(711

)

x,356

Earnings (loss) per share: basic

0.ten

0.08

0.07

0.02

(0.02

)

0.25

Earnings (loss) per share: diluted

0.x

0.07

0.07

0.02

(0.02

)

0.24

Note: Earnings (loss) per share: basic and diluted – may be impacted by rounding to allow rows to calculate.

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