Smith Micro Software, Inc. (NASDAQ:SMSI)
Smith Micro Software, Inc. (NASDAQ:SMSI) has announced its financial results for the first quarter of fiscal 2017. In a statement, the company’s President and CEO William W. Smith, Jr said the company has successfully implemented its restructuring program over the past two quarters. The plan centered at cutting on costs, improving the company’s utilization of resources as well as streamlining its business processes and management structure. With these developments, the company is optimistic and upbeat about its SafePath and QuickLink IoT Services platforms.
In Q1 of fiscal 2017, Smith Micro Software, Inc. (NASDAQ:SMSI) reported $5.6 million in revenue compared to the $7.2 million that was reported in Q1 of the previous financial year. Q1 gross profits amounted to $4.3 million as compared to $5.1 million that was reported in Q1 of the previous financial year. Gross profits amounted to 77% of the total revenue in Q1 of 2017 financial year compared to 70.7% of the total revenue in Q1 of the last previous financial year.
During Q1 Smith Micro Software, Inc. (NASDAQ:SMSI) reported $2.2 million or (-$0.18) per share in GAAP net loss compared to the $3.7 million or (-$0.32) per share in GAAP net loss reported in Q1 of the previous financial year. Non-GAAP net loss amounted to $1.4 million or (-$0.11) loss per share. At the end of Q1, the company had $2.5 million in cash and cash equivalents.
In presentation of its financial results, Smith Micro Software, Inc. (NASDAQ:SMSI) uses income (loss) before taxes, non-GAAP reconciliation of gross profit, earnings (loss) per share and net income (loss). The management is of belief that this format of presentation draws more meaning in analyzing the company’s income generations. The company excludes discount costs, non-cash debt issuance, fair value adjustments, amortization of intangible assets and stock-based compensation are not included from non-GAAP earnings calculation. The company’s non-GAAP income tax expense for the 2017 fiscal year was calculated using a tax rate of 38% since the company is currently in a cumulative loss position.
Smith Micro Software, Inc. (NASDAQ:SMSI) is engaged in the development of software to enhance and simplify mobile experience. The company offers solutions to some of the best providers of wireless solutions, enterprise businesses and device manufacturers globally. The company’s services are geared at uncovering customer experience, optimizing wireless networks and streamlining access to Wi-Fi networks.
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About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.