BusinessWire

Smith Micro Reports Third Quarter 2020 Financial Results

PITTSBURGH--(BUSINESS WIRE)--Smith Micro Software, Inc. (NASDAQ: SMSI) (“Smith Micro” or the “Company”) today reported financial results for its third quarter ended September 30, 2020.


Our third quarter was extremely productive and I am pleased that our financial results came in above street expectations,” said William W. Smith, Jr., President and CEO of Smith Micro Software. “During the quarter, we invested in R&D as well as sales and marketing initiatives, and will continue to do so throughout the remainder of 2020. I am very pleased that we remain profitable and cash-flow positive, as the company generated $8 million of cash in the first three quarters of 2020. Moving into 2021, we remain well-positioned for growth and continued profitability as we look to launch our solutions with multiple carrier customers.”

Third Quarter 2020 Financial Results

Smith Micro reported revenue of $12.6 million for the third quarter ended September 30, 2020, compared to $11.8 million reported in the third quarter ended September 30, 2019.

Third quarter 2020 gross profit was $11.3 million compared to $10.8 million reported in the third quarter of 2019.

Gross profit as a percentage of revenue was 90 percent for the third quarter of 2020 compared to 91 percent for the third quarter of 2019.

Generally accepted accounting principles in the United States (“GAAP”) net income available to common stockholders for the third quarter of 2020 was $161 thousand, or $0.00 diluted earnings per share, compared to GAAP net income available to common stockholders of $3.5 million, or $0.09 diluted earnings per share, for the third quarter of 2019.

Non-GAAP net income (which excludes stock-based compensation, amortization of intangibles, transaction gains, acquisitions costs, and preferred stock dividends) for the third quarter of 2020 was $1.8 million, or $0.04 diluted earnings per share, compared to non-GAAP net income of $4.2 million, or $0.11 diluted earnings per share, for the third quarter of 2019.

Third Quarter Year-to-Date 2020 Financial Results

Smith Micro reported revenue of $38.9 million for the nine months ended September 30, 2020, compared to $31.1 million reported in the nine months ended September 30, 2019.

Gross profit for the nine months ended September 30, 2020 was $35.1 million compared to $28.2 million reported for the same period in 2019.

Gross profit as a percentage of revenue was 90 percent for the nine months ended September 30, 2020 compared to 91 percent for the nine months ended September 30, 2019.

GAAP net income available to common stockholders for the nine months ended September 30, 2020 was $3.6 million, or $0.08 diluted earnings per share, compared to GAAP net income available to common stockholders of $6.9 million, or $0.20 diluted earnings per share, for the same period in 2019.

Non-GAAP net income (which excludes stock-based compensation, amortization of intangibles, transaction gains, acquisition costs, and preferred stock dividends) for the nine months ended September 30, 2020 was $9.0 million, or $0.21 diluted earnings per share, compared to non-GAAP net income of $8.5 million, or $0.24 diluted earnings per share, for the nine months ended September 30, 2019.

Total cash and cash equivalents at September 30, 2020 were $25.9 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, including a non-GAAP reconciliation of gross profit, income before taxes, net income available to common stockholders, and earnings 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 intangibles, transaction gains, acquisition costs, and preferred stock dividends. 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 income and net 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-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, November 4, 2020 at 4:30 p.m. ET, to discuss the Company’s third quarter 2020 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.

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 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.

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, 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, 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, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP to Non-GAAP Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data) - unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

Stock

Compensation

 

 

 

 

Intangibles

Amortization

 

 

 

 

Gain on Sale of Software Product

 

 

 

 

Acquisition Costs

 

 

Preferred Stock Dividends

 

 

Non-

GAAP

 

Three Months Ended 9/30/20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

11,303

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

$

-

 

 

$

11,303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

2,655

 

 

 

(146

)

 

 

 

 

(475

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

2,034

 

Research and development expenses

 

5,446

 

 

 

(147

)

 

 

 

 

(366

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

4,933

 

General and administrative expenses

 

2,997

 

 

 

(518

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

2,479

 

Restructuring expense

 

9

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

9

 

Total operating expenses

 

11,107

 

 

 

(811

)

 

 

 

 

(841

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

9,455

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

206

 

 

 

811

 

 

 

 

 

841

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

1,858

 

Net income available to common stockholders

 

161

 

 

 

811

 

 

 

 

 

841

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

1,813

 

Earnings per share: basic

 

0.00

 

 

 

0.02

 

 

 

 

 

0.02

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

0.04

 

Earnings per share: diluted

 

0.00

 

 

 

0.02

 

 

 

 

 

0.02

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 9/30/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

10,771

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

$

-

 

 

$

10,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

1,793

 

 

 

(65

)

 

 

 

 

(88

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

1,640

 

Research and development expenses

 

3,063

 

 

 

(72

)

 

 

 

 

(152

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

2,839

 

General and administrative expenses

 

2,396

 

 

 

(214

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

2,182

 

Restructuring expense

 

39

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

39

 

Total operating expenses

 

7,291

 

 

 

(351

)

 

 

 

 

(240

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

6,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

3,567

 

 

 

351

 

 

 

 

 

240

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

4,158

 

Net income available to common stockholders

 

3,515

 

 

 

351

 

 

 

 

 

240

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

52

 

 

 

4,158

 

Earnings per share: basic

 

0.10

 

 

 

0.01

 

 

 

 

 

0.01

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

0.00

 

 

 

0.12

 

Earnings per share: diluted

 

0.09

 

 

 

0.01

 

 

 

 

 

0.01

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

0.00

 

 

 

0.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended 9/30/20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

35,116

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

$

-

 

 

$

35,116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

8,049

 

 

 

(404

)

 

 

 

 

(1,225

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

6,420

 

Research and development expenses

 

13,774

 

 

 

(412

)

 

 

 

 

(980

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

12,382

 

General and administrative expenses

 

9,741

 

 

 

(1,436

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

(918

)

 

 

-

 

 

 

7,387

 

Restructuring expense

 

19

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

19

 

Total operating expenses

 

31,583

 

 

 

(2,252

)

 

 

 

 

(2,205

)

 

 

 

 

-

 

 

 

 

 

(918

)

 

 

-

 

 

 

26,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

3,630

 

 

 

2,252

 

 

 

 

 

2,205

 

 

 

 

 

-

 

 

 

 

 

918

 

 

 

-

 

 

 

9,005

 

Net income available to common stockholders

 

3,585

 

 

 

2,252

 

 

 

 

 

2,205

 

 

 

 

 

-

 

 

 

 

 

918

 

 

 

-

 

 

 

8,960

 

Earnings per share: basic

 

0.09

 

 

 

0.06

 

 

 

 

 

0.05

 

 

 

 

 

-

 

 

 

 

 

0.02

 

 

 

-

 

 

 

0.22

 

Earnings per share: diluted

 

0.08

 

 

 

0.05

 

 

 

 

 

0.05

 

 

 

 

 

-

 

 

 

 

 

0.02

 

 

 

-

 

 

 

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended 9/30/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

28,166

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

$

-

 

 

$

28,166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

5,529

 

 

 

(179

)

 

 

 

 

(295

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

5,055

 

Research and development expenses

 

8,487

 

 

 

(205

)

 

 

 

 

(410

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

7,872

 

General and administrative expenses

 

7,522

 

 

 

(755

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

(76

)

 

 

-

 

 

 

6,691

 

Restructuring expense

 

154

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

154

 

Total operating expenses

 

21,692

 

 

 

(1,139

)

 

 

 

 

(705

)

 

 

 

 

-

 

 

 

 

 

(76

)

 

 

-

 

 

 

19,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

7,059

 

 

 

1,139

 

 

 

 

 

705

 

 

 

 

 

(483

)

 

 

 

 

76

 

 

 

-

 

 

 

8,496

 

Net income available to common stockholders

 

6,932

 

 

 

1,139

 

 

 

 

 

705

 

 

 

 

 

(483

)

 

 

 

 

76

 

 

 

119

 

 

 

8,488

 

Earnings per share: basic

 

0.21

 

 

 

0.03

 

 

 

 

 

0.02

 

 

 

 

 

(0.01

)

 

 

 

 

0.00

 

 

 

0.00

 

 

 

0.26

 

Earnings per share: diluted

 

0.20

 

 

 

0.03

 

 

 

 

 

0.02

 

 

 

 

 

(0.01

)

 

 

 

 

0.00

 

 

 

0.00

 

 

 

0.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data) - unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

 

For the Nine Months

 

 

Ended September 30,

 

 

Ended September 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues

$

12,629

 

 

$

11,782

 

 

$

38,883

 

 

$

31,068

 

Cost of revenues

 

1,326

 

 

 

1,011

 

 

 

3,767

 

 

 

2,902

 

Gross profit

 

11,303

 

 

 

10,771

 

 

 

35,116

 

 

 

28,166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

2,655

 

 

 

1,793

 

 

 

8,049

 

 

 

5,529

 

Research and development

 

5,446

 

 

 

3,063

 

 

 

13,774

 

 

 

8,487

 

General and administrative

 

2,997

 

 

 

2,396

 

 

 

9,741

 

 

 

7,522

 

Restructuring expense

 

9

 

 

 

39

 

 

 

19

 

 

 

154

 

Total operating expenses

 

11,107

 

 

 

7,291

 

 

 

31,583

 

 

 

21,692

 

Operating income

 

196

 

 

 

3,480

 

 

 

3,533

 

 

 

6,474

 

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

7

 

 

 

87

 

 

 

94

 

 

 

117

 

Gain on sale of software product

 

 

 

 

 

 

 

 

 

 

483

 

Other expense, net

 

3

 

 

 

 

 

 

3

 

 

 

(15

)

Income before provision for income taxes

 

206

 

 

 

3,567

 

 

 

3,630

 

 

 

7,059

 

Income tax expense

 

45

 

 

 

 

 

 

45

 

 

 

8

 

Net income

 

161

 

 

 

3,567

 

 

 

3,585

 

 

 

7,051

 

Less preferred stock dividends

 

 

 

 

(52

)

 

 

 

 

 

(119

)

Net income available to common stockholders

$

161

 

 

$

3,515

 

 

$

3,585

 

 

$

6,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.00

 

 

$

0.10

 

 

$

0.09

 

 

$

0.21

 

Diluted

$

0.00

 

 

$

0.09

 

 

$

0.08

 

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

41,351

 

 

 

36,094

 

 

 

40,656

 

 

 

33,170

 

Diluted

 

43,026

 

 

 

39,472

 

 

 

42,577

 

 

 

35,287

 

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

unaudited

 

 

audited

 

 

September 30,

 

 

December 31,

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

Cash & cash equivalents

$

25,872

 

 

$

28,268

 

Accounts receivable, net

 

9,797

 

 

 

10,894

 

Prepaid and other assets

 

1,329

 

 

 

802

 

Total current assets

 

36,998

 

 

 

39,964

 

Equipment & improvements, net

 

2,250

 

 

 

2,109

 

Right-of-use assets

 

6,090

 

 

 

6,464

 

Deferred tax asset, net

 

94

 

 

 

94

 

Other assets

 

441

 

 

 

234

 

Intangible assets, net

 

14,186

 

 

 

4,535

 

Goodwill

 

11,493

 

 

 

7,797

 

TOTAL ASSETS

$

71,552

 

 

$

61,197

 

 

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

Accounts payable

$

1,855

 

 

$

2,050

 

Accrued payroll and benefits

 

2,705

 

 

 

2,107

 

Current operating lease liabilities

 

1,407

 

 

 

1,221

 

Other accrued liabilities

 

260

 

 

 

244

 

Deferred revenue

 

1,561

 

 

 

98

 

Total current liabilities

 

7,788

 

 

 

5,720

 

 

 

 

 

 

 

 

 

Operating lease liabilities

 

5,121

 

 

 

5,774

 

Deferred rent

 

928

 

 

 

885

 

Other long-term liabilities

 

83

 

 

 

134

 

Total non-current liabilities

 

6,132

 

 

 

6,793

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

Common stock

 

41

 

 

 

38

 

Additional paid in capital

 

279,401

 

 

 

274,041

 

Accumulated comprehensive deficit

 

(221,810

)

 

 

(225,395

)

Total stockholders' equity

 

57,632

 

 

 

48,684

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

71,552

 

 

$

61,197

 

 

 

 

 

 

 

 

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands) - unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

 

For the Nine Months

 

 

 

Ended September 30,

 

 

Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

161

 

 

$

3,567

 

 

$

3,585

 

 

$

7,051

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,014

 

 

 

316

 

 

 

2,676

 

 

 

997

 

Non-cash lease expense

 

 

294

 

 

 

249

 

 

 

805

 

 

 

730

 

Restructuring costs

 

 

13

 

 

 

39

 

 

 

19

 

 

 

154

 

Gain on sale of software product

 

 

 

 

 

 

 

 

 

 

 

(483

)

Provision for doubtful accounts and other adjustments to accounts receivable

 

 

(50

)

 

 

119

 

 

 

(59

)

 

 

127

 

Provision for excess and obsolete inventory

 

 

 

 

 

 

 

 

 

 

 

1

 

Loss on disposal of fixed assets

 

 

 

 

 

 

 

 

 

 

 

6

 

Stock based compensation

 

 

811

 

 

 

351

 

 

 

2,252

 

 

 

1,139

 

Changes in operating accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

2,796

 

 

 

1,811

 

 

 

1,159

 

 

 

(4,031

)

Prepaid expenses and other assets

 

 

103

 

 

 

190

 

 

 

(530

)

 

 

52

 

Accounts payable and accrued liabilities

 

 

(1,112

)

 

 

(175

)

 

 

(1,804

)

 

 

(701

)

Deferred revenue

 

 

(89

)

 

 

(78

)

 

 

173

 

 

 

(214

)

Net cash provided by operating activities

 

 

3,941

 

 

 

6,389

 

 

 

8,276

 

 

 

4,828

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of Circle operator business, net

 

 

(1,350

)

 

 

 

 

 

(13,500

)

 

 

 

Acquisition of Smart Retail business, net

 

 

 

 

 

 

 

 

 

 

 

(3,974

)

Capital expenditures

 

 

(360

)

 

 

(537

)

 

 

(1,212

)

 

 

(824

)

Other investing activities

 

 

11

 

 

 

13

 

 

 

(193

)

 

 

363

 

Net cash used in investing activities

 

 

(1,699

)

 

 

(524

)

 

 

(14,905

)

 

 

(4,435

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from exercise of common stock warrants

 

 

 

 

 

11,403

 

 

 

4,196

 

 

 

11,403

 

Dividends paid on preferred stock

 

 

 

 

 

(52

)

 

 

 

 

 

(119

)

Other financing activities

 

 

16

 

 

 

43

 

 

 

37

 

 

 

34

 

Net cash provided by financing activities

 

 

16

 

 

 

11,394

 

 

 

4,233

 

 

 

11,318

 

Net increase (decrease) in cash and cash equivalents

 

 

2,258

 

 

 

17,259

 

 

 

(2,396

)

 

 

11,711

 

Cash and cash equivalents, beginning of period

 

 

23,614

 

 

 

6,611

 

 

 

28,268

 

 

 

12,159

 

Cash and cash equivalents, end of period

 

$

25,872

 

 

$

23,870

 

 

$

25,872

 

 

$

23,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

3,941

 

 

$

6,389

 

 

$

8,276

 

 

$

4,828

 

Capital expenditures

 

 

(360

)

 

 

(537

)

 

 

(1,212

)

 

 

(824

)

Free cash flow

 

$

3,581

 

 

$

5,852

 

 

$

7,064

 

 

$

4,004

 

 


Contacts

IR INQUIRIES:
Charles Messman
Investor Relations
949-362-5800
IR@smithmicro.com