Company Quick10K Filing
Smith Micro Software
Price5.15 EPS0
Shares39 P/E21
MCap203 P/FCF42
Net Debt-24 EBIT10
TEV179 TEV/EBIT18
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-10
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-03-13
10-Q 2019-09-30 Filed 2019-11-01
10-Q 2019-06-30 Filed 2019-08-02
10-Q 2019-03-31 Filed 2019-05-15
10-K 2018-12-31 Filed 2019-03-27
10-Q 2018-09-30 Filed 2018-10-26
10-Q 2018-06-30 Filed 2018-07-27
10-Q 2018-03-31 Filed 2018-05-15
10-K 2017-12-31 Filed 2018-03-30
10-Q 2017-09-30 Filed 2017-11-14
10-Q 2017-06-30 Filed 2017-08-14
10-Q 2017-03-31 Filed 2017-05-04
10-K 2016-12-31 Filed 2017-03-10
10-Q 2016-09-30 Filed 2016-10-28
10-Q 2016-06-30 Filed 2016-07-29
10-Q 2016-03-31 Filed 2016-04-29
10-K 2015-12-31 Filed 2016-03-09
10-Q 2015-09-30 Filed 2015-10-30
10-Q 2015-06-30 Filed 2015-07-29
10-Q 2015-03-31 Filed 2015-05-01
10-K 2014-12-31 Filed 2015-02-27
10-Q 2014-09-30 Filed 2014-10-31
10-Q 2014-06-30 Filed 2014-08-01
10-Q 2014-03-31 Filed 2014-05-09
10-K 2013-12-31 Filed 2014-03-07
10-Q 2013-09-30 Filed 2013-11-08
10-Q 2013-06-30 Filed 2013-08-02
10-Q 2013-03-31 Filed 2013-05-03
10-K 2012-12-31 Filed 2013-02-20
10-Q 2012-09-30 Filed 2012-11-02
10-Q 2012-06-30 Filed 2012-08-03
10-Q 2012-03-31 Filed 2012-05-04
10-K 2011-12-31 Filed 2012-02-27
10-Q 2011-09-30 Filed 2011-11-03
10-Q 2011-06-30 Filed 2011-08-03
10-Q 2011-03-31 Filed 2011-05-05
10-K 2010-12-31 Filed 2011-02-25
10-Q 2010-09-30 Filed 2010-11-04
10-Q 2010-06-30 Filed 2010-08-05
10-Q 2010-03-31 Filed 2010-05-06
10-K 2009-12-31 Filed 2010-03-02
8-K 2020-08-05 Earnings, Exhibits
8-K 2020-06-09
8-K 2020-05-06
8-K 2020-03-05
8-K 2020-02-12
8-K 2019-10-24
8-K 2019-10-24
8-K 2019-07-25
8-K 2019-06-04
8-K 2019-05-08
8-K 2019-03-14
8-K 2019-03-13
8-K 2019-01-09
8-K 2018-12-17
8-K 2018-11-07
8-K 2018-10-24
8-K 2018-07-24
8-K 2018-06-14
8-K 2018-05-09
8-K 2018-05-03
8-K 2018-03-14
8-K 2018-03-05
8-K 2018-01-31

SMSI 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 smsi-ex311_8.htm
EX-31.2 smsi-ex312_6.htm
EX-32.1 smsi-ex321_7.htm

Smith Micro Software Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
604836241202012201420172020
Assets, Equity
1593-3-9-152012201420172020
Rev, G Profit, Net Income
151173-1-52012201420172020
Ops, Inv, Fin

smsi-10q_20200630.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10‑Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 001‑35525

 

SMITH MICRO SOFTWARE, INC.

(Exact name of registrant as specified in its charter)

 

 

DELAWARE

33‑0029027

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

5800 CORPORATE DRIVE

PITTSBURGH, PA 15237

(Address of principal executive offices, including zip code)

(412) 837-5300

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.001 per share

 

SMSI

 

NASDAQ

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes     No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes     No  

 

As of August 6, 2020, there were 41,355,673 shares of common stock outstanding.

 

 


 

SMITH MICRO SOFTWARE, INC.

QUARTERLY REPORT ON FORM 10-Q

JUNE 30, 2020

TABLE OF CONTENTS

 

PART I.

 

FINANCIAL INFORMATION

 

 

Item 1.

 

Financial Statements (Unaudited)

 

2

 

 

Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019

 

2

 

 

Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2020 and 2019

 

3

 

 

Consolidated Statement of Stockholders’ Equity for the Three and Six Months Ended June 30, 2020 and 2019

 

4

 

 

Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2020 and 2019

 

6

 

 

Notes to the Consolidated Financial Statements

 

7

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

16

Item 4.

 

Controls and Procedures

 

20

 

 

 

 

 

PART II.

 

OTHER INFORMATION

 

 

Item 1.

 

Legal Proceedings

 

21

Item 1A.

 

Risk Factors

 

21

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

22

Item 6.

 

Exhibits

 

23

 

 

 

 

 

SIGNATURES

 

24

 

1


 

PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements

SMITH MICRO SOFTWARE, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and par value data)

 

 

 

June 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(unaudited)

 

 

(audited)

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

23,614

 

 

$

28,268

 

Accounts receivable, net of allowances for doubtful accounts and other

   adjustments of $242 (2020) and $253 (2019)

 

 

12,542

 

 

 

10,894

 

Prepaid expenses and other current assets

 

 

1,427

 

 

 

802

 

Total current assets

 

 

37,583

 

 

 

39,964

 

Equipment and improvements, net

 

 

2,063

 

 

 

2,109

 

Right-of-use assets

 

 

6,384

 

 

 

6,464

 

Deferred tax assets, net

 

 

94

 

 

 

94

 

Other assets

 

 

458

 

 

 

234

 

Intangible assets, net

 

 

15,027

 

 

 

4,535

 

Goodwill

 

 

11,493

 

 

 

7,797

 

Total assets

 

$

73,102

 

 

$

61,197

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,936

 

 

$

2,050

 

Accrued payroll and benefits

 

 

2,633

 

 

 

2,107

 

Current operating lease liabilities

 

 

1,381

 

 

 

1,221

 

Other accrued liabilities

 

 

241

 

 

 

244

 

Deferred revenue

 

 

1,650

 

 

 

98

 

Total current liabilities

 

 

9,841

 

 

 

5,720

 

Non-current liabilities:

 

 

 

 

 

 

 

 

Operating lease liabilities

 

 

5,448

 

 

 

5,774

 

Deferred rent

 

 

815

 

 

 

885

 

Other long term liabilities

 

 

100

 

 

 

134

 

Total non-current liabilities

 

 

6,363

 

 

 

6,793

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, par value $0.001 per share; 5,000,000 shares authorized;

   5,500 shares issued (2020 and 2019); 0 shares outstanding (2020 and

   2019)

 

 

 

 

 

 

Common stock, par value $0.001 per share; 100,000,000 shares authorized;

   41,355,673 and 38,475,084 shares issued and outstanding (2020 and

   2019, respectively)

 

 

41

 

 

 

38

 

Additional paid-in capital

 

 

278,828

 

 

 

274,041

 

Accumulated comprehensive deficit

 

 

(221,971

)

 

 

(225,395

)

Total stockholders’ equity

 

 

56,898

 

 

 

48,684

 

Total liabilities and stockholders' equity

 

$

73,102

 

 

$

61,197

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the consolidated financial statements.

2


 

SMITH MICRO SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

Revenues

 

$

12,933

 

 

$

10,854

 

 

$

26,255

 

 

$

19,286

 

Cost of revenues

 

 

1,269

 

 

 

974

 

 

 

2,441

 

 

 

1,891

 

Gross profit

 

 

11,664

 

 

 

9,880

 

 

 

23,814

 

 

 

17,395

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

2,613

 

 

 

1,768

 

 

 

5,400

 

 

 

3,735

 

Research and development

 

 

4,604

 

 

 

2,743

 

 

 

8,333

 

 

 

5,425

 

General and administrative

 

 

3,070

 

 

 

2,426

 

 

 

6,738

 

 

 

5,126

 

Restructuring expense

 

 

 

 

 

11

 

 

 

6

 

 

 

115

 

Total operating expenses

 

 

10,287

 

 

 

6,948

 

 

 

20,477

 

 

 

14,401

 

Operating income

 

 

1,377

 

 

 

2,932

 

 

 

3,337

 

 

 

2,994

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

2

 

 

 

31

 

 

 

87

 

 

 

30

 

Gain on sale of software product

 

 

 

 

 

483

 

 

 

 

 

 

483

 

Other expense

 

 

 

 

 

(6

)

 

 

 

 

 

(15

)

Income before provision for income taxes

 

 

1,379

 

 

 

3,440

 

 

 

3,424

 

 

 

3,492

 

Provision for income tax expense

 

 

 

 

 

4

 

 

 

 

 

 

8

 

Net income

 

$

1,379

 

 

$

3,436

 

 

$

3,424

 

 

$

3,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.03

 

 

$

0.11

 

 

$

0.08

 

 

$

0.11

 

Diluted

 

$

0.03

 

 

$

0.10

 

 

$

0.08

 

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

41,127

 

 

 

32,068

 

 

 

40,305

 

 

 

31,685

 

Diluted

 

 

43,079

 

 

 

35,308

 

 

 

42,346

 

 

 

33,365

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred dividends per share

 

$

 

 

$

25.01

 

 

$

 

 

$

50.01

 

 

See accompanying notes to the consolidated financial statements.


3


 

SMITH MICRO SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Accumulated

 

 

 

 

 

 

 

Series B Preferred Stock

 

 

Common Stock

 

 

Paid-in

 

 

Comprehensive

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Total

 

BALANCE, March 31, 2020 (unaudited)

 

 

 

 

$

 

 

 

40,383

 

 

$

40

 

 

$

276,163

 

 

$

(223,350

)

 

$

52,853

 

Non-cash compensation recognized on

   stock options and ESPP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17

 

 

 

 

 

 

17

 

Restricted stock grants, net of cancellations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

791

 

 

 

 

 

 

791

 

Cancellation of shares for payment of

   withholding tax

 

 

 

 

 

 

 

 

(66

)

 

 

 

 

 

(296

)

 

 

 

 

 

(296

)

Exercise of warrants

 

 

 

 

 

 

 

 

1,038

 

 

 

1

 

 

 

2,150

 

 

 

 

 

 

2,151

 

Exercise of stock options

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

3

 

 

 

 

 

 

3

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,379

 

 

 

1,379

 

BALANCE, June 30, 2020 (unaudited)

 

 

 

 

$

 

 

 

41,356

 

 

$

41

 

 

$

278,828

 

 

$

(221,971

)

 

$

56,898

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Accumulated

 

 

 

 

 

 

 

Series B Preferred Stock

 

 

Common Stock

 

 

Paid-in

 

 

Comprehensive

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Total

 

BALANCE, December 31, 2019 (audited)

 

 

 

 

$

 

 

 

38,475

 

 

$

38

 

 

$

274,041

 

 

$

(225,395

)

 

$

48,684

 

Non-cash compensation recognized on

   stock options and ESPP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30

 

 

 

 

 

 

30

 

Restricted stock grants, net of cancellations

 

 

 

 

 

 

 

 

1,000

 

 

 

1

 

 

 

1,410

 

 

 

 

 

 

1,411

 

Cancellation of shares for payment of

   withholding tax

 

 

 

 

 

 

 

 

(176

)

 

 

 

 

 

(868

)

 

 

 

 

 

(868

)

Employee stock purchase plan

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

5

 

 

 

 

 

 

5

 

Exercise of warrants

 

 

 

 

 

 

 

 

2,047

 

 

 

2

 

 

 

4,194

 

 

 

 

 

 

4,196

 

Exercise of stock options

 

 

 

 

 

 

 

 

8

 

 

 

 

 

 

16

 

 

 

 

 

 

16

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,424

 

 

 

3,424

 

BALANCE, June 30, 2020 (unaudited)

 

 

 

 

$

 

 

 

41,356

 

 

$

41

 

 

$

278,828

 

 

$

(221,971

)

 

$

56,898

 

 

See accompanying notes to the consolidated financial statements.


4


 

SMITH MICRO SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Accumulated

 

 

 

 

 

 

 

Series B Preferred Stock

 

 

Common Stock

 

 

Paid-in

 

 

Comprehensive

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Total

 

BALANCE, March 31, 2019 (unaudited)

 

 

1

 

 

$

 

 

 

32,065

 

 

$

32

 

 

$

261,990

 

 

$

(235,984

)

 

$

26,038

 

Non-cash compensation recognized on

   stock options and ESPP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

10

 

Restricted stock grants, net of cancellations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

323

 

 

 

 

 

 

323

 

Cancellation of shares for payment of

   withholding tax

 

 

 

 

 

 

 

 

(35

)

 

 

 

 

 

(108

)

 

 

 

 

 

(108

)

Exercise of warrants

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of preferred stock to common

   stock

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34

)

 

 

(34

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Net income