Smith Micro Software, Inc. (SMSI) research, news, and more from GeoInvesting

Company description

Sun, 12 Aug 2018 21:13:27 GMT

Smith Micro Software Inc is a provider of software solutions. It develops and markets wireless solutions for wireless service providers, mobile device and chipset manufacturers, and enterprise businesses. In addition to wireless solutions, it also develops graphics software for animators, illustrators, graphic designers and students. The company's business is focused on two industry segments: Wireless and Graphics. Wireless includes NetWise, CommSuite, SafePath, and QuickLink family of products. Graphics includes consumer-based products: Poser, Moho, Clip Studio, MotionArtist, and StuffIt. Its primary geographic markets are Americas, Europe, the Middle East and Africa and Asia Pacific. The majority of its revenue is derived from the Americas.

Research

Mon, 29 Jul 2019 15:39:32 GMT

Smith Micro Software (NASDAQ:SMSI) ($5.75; $184.3M market cap) - On Friday, we highlighted the strong Q2 2019 results of SMSI, a company that develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers, device manufacturers, and enterprise businesses around the world.

We mentioned it was premium member Mark Gomes that turned us on to the story, and on January 22, 2018 we issued our reasons for tracking (RFT) on SMSI following a major contract win with Sprint. Management’s. Focus on profitability was one of our key points.

Mark has provided a Q2 2019 earnings update video that can be seen here.

Research

Fri, 26 Jul 2019 04:00:00 GMT

Smith Micro Software (NASDAQ:SMSI) ($3.45; $109.2M market cap) develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers, device manufacturers, and enterprise businesses around the world. The Company announced its Q2 2019 results:

Sales of $10.9 million vs $6.9 million in the prior year
Non-GAAP EPS of $0.08 vs $0.01 in the prior year

“I am very pleased with the continued growth and profitability we delivered in the second quarter of 2019,” said William W. Smith, Jr., President and CEO of Smith Micro. “We saw growth across all three wireless solutions, again mostly driven by our SafePath® platform. We also achieved another consecutive quarter of subscriber revenue growth from the CommSuite® platform, as well as continued growth with ViewSpot™, our recent Smart Retail acquisition that closed in the first quarter.”

Mr. Smith concluded, “The outlook for the second half of 2019 is very strong. Our sales pipeline continues to grow across all three wireless solutions and, with the successful launch of our first SafePath IOT device, our product offering has strengthened and we’ve now entered a new market.”

After premium member Mark Gomes turned us on to the story, on January 22, 2018 we issued our reasons for tracking (RFT) on SMSI on the heels of its major contract win with Sprint. Management’s focus on profitability was one of our key points. You can see our full RFT here.

Research

Tue, 19 Mar 2019 14:27:17 GMT

Smith Micro Software (NASDAQ:SMSI) ($2.49; $80.0M market cap) - After premium member Mark Gomes turned us on to the story, on January 22, 2018 we issued our reasons for tracking (RFT) SMSI on the heels of its major contract win with Sprint. Management’s focus on profitability was also a key point in our RFT. You can see our full RFT here.

SMSI develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers, device manufacturers, and enterprise businesses around the world.

Recently, Mark released a youtube video update on the SMSI story, which you can watch here, where he discusses what he thinks about the stock’s future valuation. Along with Mark’s video, we wanted to highlight some of the bullish comments from the Q4 2018 conference call:

"During 2018, we continued to streamline our operations and rationalize our product lineup. We made difficult decisions to discontinue efforts on marginal product families and to do so in a manner that would not damage important customer relationships, which are keys to our continued growth in 2019 and beyond. We also successfully strengthened our balance sheet, paid out substantially all our debt obligations and strategically acquired a third leg to our wireless products stool with the acquisition of the Smart Retail product suite that we have branded ViewSpot.

We are pleased to have entered 2019 with a strong wind to our back. Sales activities are focused and backed with a level of energy we have not seen in almost 10 years. Our products, SafePath, CommSuite and ViewSpot are garnering increasingly strong interest and support from wireless carriers and cable MSOs around the world. We had over 50 meetings at the recently concluded Mobile World Congress in Barcelona.

Revenue growth from new customers and orders are definitely part of our plan for 2019. And we are looking to achieve continued revenue growth with the expanded profitability and strong creation of free cash flow. All the work during the past few years to rationalize our expense profile and build out an exciting product lineup are on the precipice of strong returns. This is an exciting time for our company."

Research

Tue, 11 Dec 2018 16:18:17 GMT

Smith Micro Software (NASDAQ:SMSI) ($2.10; $59.3M market cap) develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers, device manufacturers, and enterprise businesses around the world. SMSI announced it has repaid $3.2 million of short and long term debt obligations, significantly strengthens its balance sheet as the company enters 2019.

“The recent financing was a significant final step in the turnaround of our business, allowing us the flexibility to pay down our debt obligations, strengthen our overall balance sheet, and accelerate strategic initiatives,” said William W. Smith, Jr., President and CEO of Smith Micro Software. “We will enter 2019 extremely well positioned to maximize our business case, delivering powerful solutions that will benefit both wireless carriers and consumers worldwide."

Research

Fri, 13 Apr 2018 14:37:31 GMT

Smith Micro Software (NASDAQ:SMSI) ($1.76; $32.1M market cap) develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers, device manufacturers, and enterprise businesses around the world.

After premium member Mark Gomes turned us on to the story, on January 22, 2018 we issued our reasons for tracking (RFT) SMSI on the heels of its major contract win with Sprint. Management’s focus on profitability was also a key point in our RFT. You can see our full RFT here.

We had a chance to sit with SMSI’s management at the Micro-Cap conference earlier this week. Our meeting confirmed our thesis that:

SafePath product will contribute roughly $3.5 million per quarter on top of its legacy revenues once fully implemented, likely to will occur in the latter stages of 2018.
The business model is very scalable at current SG&A levels
If all goes smoothly with the Sprint integration, other major carriers could likely follow because of the company’s strong relationship with them
Recent financing completed in early March of $5 million at a price of $1.75 is could be the last round the company will need. The company expects that once Safepath is integrated with Sprint that the levels of profitability will be more than enough to sustain business operations moving forward.
They also believe it will earn enough to deal with upcoming debt repayments that are due in September 2019 and March 2020.

As we stated in our January emails, we have not taken a position in SMSI. We will continue to monitor the execution of its business plan.

Reasons For Tracking

Mon, 22 Jan 2018 16:06:43 GMT

**Reasons For Tracking SMSI

Premium GeoInvesting member Mark Gomes has turned us onto Smith Micro Software (NASDAQ:SMSI) and its potential comeback story. Consequently, we have started to track SMSI to monitor if management’s turnaround efforts (their third attempt in 4 years) will stick this time around. As of today, the company's stock price is $2.79, and its market cap is $39.85M. We currently have no position in SMSI.

Please see our 5 reasons for tracking SMSI, complete with caveats, here.

Research

Fri, 19 Jan 2018 17:06:10 GMT

Smith Micro Software (NASDAQ:SMSI) ($2.76; $39.4M market cap) - Premium GeoInvesting member MarK Gomes has turned us onto SMSI’s potential comeback story. SMSI develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers, device manufacturers, and enterprise businesses around the world.

We have now begun to track SMSI to see if management’s turnaround efforts (their third attempt in 4 years) will stick this time around. Fueled by a major contract win with Sprint and management's focus on profitability, we are anxious to see if management can execute on its bullish plan. We currently have no position in SMSI.

Our full reasons for tracking the company (“RFT”) will be available shortly.