Smith Micro Reports Second Quarter 2020 Financial Results

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

I am pleased with our results for the first half of 2020, particularly with our ongoing R&D efforts as we continue to ramp product development to meet the demands of our growing customer base,” said William W. Smith, Jr., President and CEO of Smith Micro. “In the second quarter, we remained profitable, generated free cash flow, readied our SafePath® platform for launch with a new wireless carrier, and deployed our ViewSpot® solution at another carrier – all while navigating the unique demands of doing business during the COVID-19 pandemic.”

Second Quarter 2020 Financial Results

Smith Micro reported revenue of $12.9 million for the second quarter ended June 30, 2020, compared to $10.9 million reported in the second quarter ended June 30, 2019.

Second quarter 2020 gross profit was $11.7 million compared to $9.9 million reported in the second quarter of 2019.

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

Generally accepted accounting principles in the United States (“GAAP”) net income available to common stockholders for the second quarter of 2020 was $1.4 million, or $0.03 diluted earnings per share, compared to GAAP net income available to common stockholders of $3.4 million, or $0.10 diluted earnings per share, for the second 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 second quarter of 2020 was $3.0 million, or $0.07 diluted earnings per share, compared to non-GAAP net income of $3.6 million, or $0.10 diluted earnings per share, for the second quarter of 2019.

Second Quarter Year-to-Date 2020 Financial Results

Smith Micro reported revenue of $26.3 million for the six months ended June 30, 2020, compared to $19.3 million reported in the six months ended June 30, 2019.

Gross profit for the six months ended June 30, 2020 was $23.8 million compared to $17.4 million reported for the same period in 2019.

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

GAAP net income available to common stockholders for the six months ended June 30, 2020 was $3.4 million, or $0.08 diluted earnings per share, compared to GAAP net income available to common stockholders of $3.4 million, or $0.10 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 six months ended June 30, 2020 was $7.1 million, or $0.17 diluted earnings per share, compared to non-GAAP net income of $4.3 million, or $0.13 diluted earnings per share, for the six months ended June 30, 2019.

Total cash and cash equivalents at June 30, 2020 were $23.6 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, August 5, 2020 at 4:30 p.m. EDT, to discuss the Company’s second 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 6/30/20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

11,664

 

 

$

 

 

 

 

$

 

 

 

 

$

 

 

 

 

$

 

 

$

 

 

$

11,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

2,613

 

 

 

(144

)

 

 

 

 

(483

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,986

 

Research and development expenses

 

4,604

 

 

 

(146

)

 

 

 

 

(366

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,092

 

General and administrative expenses

 

3,070

 

 

 

(518

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,552

 

Restructuring expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

10,287

 

 

 

(808

)

 

 

 

 

(849

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for

income taxes

 

1,379

 

 

 

808

 

 

 

 

 

849

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,036

 

Net income available to

common stockholders

 

1,379

 

 

 

808

 

 

 

 

 

849

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,036

 

Earnings per share: basic

 

0.03

 

 

 

0.02

 

 

 

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.07

 

Earnings per share: diluted

 

0.03

 

 

 

0.02

 

 

 

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 6/30/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

9,880

 

 

$

 

 

 

 

$

 

 

 

 

$

 

 

 

 

$

 

 

$

 

 

$

9,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

1,768

 

 

 

(61

)

 

 

 

 

(116

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,591

 

Research and development expenses

 

2,743

 

 

 

(67

)

 

 

 

 

(152

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,524

 

General and administrative expenses

 

2,426

 

 

 

(205

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,221

 

Restructuring expense

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

Total operating expenses

 

6,948

 

 

 

(333

)

 

 

 

 

(268

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for

income taxes

 

3,440

 

 

 

333

 

 

 

 

 

268

 

 

 

 

 

(483

)

 

 

 

 

 

 

 

 

 

 

3,558

 

Net income available to common

stockholders

 

3,402

 

 

 

333

 

 

 

 

 

268

 

 

 

 

 

(483

)

 

 

 

 

 

 

 

34

 

 

 

3,554

 

Earnings per share: basic

 

0.11

 

 

 

0.01

 

 

 

 

 

0.01

 

 

 

 

 

(0.02

)

 

 

 

 

 

 

 

0.00

 

 

 

0.11

 

Earnings per share: diluted

 

0.10

 

 

 

0.01

 

 

 

 

 

0.01

 

 

 

 

 

(0.01

)

 

 

 

 

 

 

 

0.00

 

 

 

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended 6/30/20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

23,814

 

 

$

 

 

 

 

$

 

 

 

 

$

 

 

 

 

$

 

 

$

 

 

$

23,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

5,400

 

 

 

(258

)

 

 

 

 

(750

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,392

 

Research and development expenses

 

8,333

 

 

 

(265

)

 

 

 

 

(614

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,454

 

General and administrative expenses

 

6,738

 

 

 

(918

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(918

)

 

 

 

 

 

4,902

 

Restructuring expense

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

Total operating expenses

 

20,477

 

 

 

(1,441

)

 

 

 

 

(1,364

)

 

 

 

 

 

 

 

 

 

(918

)

 

 

 

 

 

16,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for

income taxes

 

3,424

 

 

 

1,441

 

 

 

 

 

1,364

 

 

 

 

 

 

 

 

 

 

918

 

 

 

 

 

 

7,147

 

Net income available to

common stockholders

 

3,424

 

 

 

1,441

 

 

 

 

 

1,364

 

 

 

 

 

 

 

 

 

 

918

 

 

 

 

 

 

7,147

 

Earnings per share: basic

 

0.08

 

 

 

0.04

 

 

 

 

 

0.03

 

 

 

 

 

 

 

 

 

 

0.02

 

 

 

 

 

 

0.18

 

Earnings per share: diluted

 

0.08

 

 

 

0.03

 

 

 

 

 

0.03

 

 

 

 

 

 

 

 

 

 

0.02

 

 

 

 

 

 

0.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended 6/30/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

17,395

 

 

$

 

 

 

 

$

 

 

 

 

$

 

 

 

 

$

 

 

$

 

 

$

17,395

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

3,735

 

 

 

(114

)

 

 

 

 

(207

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,414

 

Research and development expenses

 

5,425

 

 

 

(133

)

 

 

 

 

(258

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,034

 

General and administrative expenses

 

5,126

 

 

 

(541

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(76

)

 

 

 

 

 

4,509

 

Restructuring expense

 

115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

115

 

Total operating expenses

 

14,401

 

 

 

(788

)

 

 

 

 

(465

)

 

 

 

 

 

 

 

 

 

(76

)

 

 

 

 

 

13,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for

income taxes

 

3,492

 

 

 

788

 

 

 

 

 

465

 

 

 

 

 

(483

)

 

 

 

 

76

 

 

 

 

 

 

4,338

 

Net income available to common

stockholders

 

3,417

 

 

 

788

 

 

 

 

 

465

 

 

 

 

 

(483

)

 

 

 

 

76

 

 

 

67

 

 

 

4,330

 

Earnings per share: basic

 

0.11

 

 

 

0.02

 

 

 

 

 

0.01

 

 

 

 

 

(0.02

)

 

 

 

 

0.00

 

 

 

0.00

 

 

 

0.14

 

Earnings per share: diluted

 

0.10

 

 

 

0.02

 

 

 

 

 

0.01

 

 

 

 

 

(0.01

)

 

 

 

 

0.00

 

 

 

0.00

 

 

 

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data) – unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

 

For the Six Months

 

 

Ended June 30,

 

 

Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

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

 

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

2

 

 

 

31

 

 

 

87

 

 

 

30

 

Gain on sale of software product

 

 

 

 

483

 

 

 

 

 

 

483

 

Other expense, net

 

 

 

 

(6

)

 

 

 

 

 

(15

)

Income before provision for income taxes

 

1,379

 

 

 

3,440

 

 

 

3,424

 

 

 

3,492

 

Income tax expense

 

 

 

 

4

 

 

 

 

 

 

8

 

Net income

 

1,379

 

 

 

3,436

 

 

 

3,424

 

 

 

3,484

 

Less preferred stock dividends

 

 

 

 

(34

)

 

 

 

 

 

(67

)

Net income available to common stockholders

$

1,379

 

 

$

3,402

 

 

$

3,424

 

 

$

3,417

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

unaudited

 

 

audited

 

 

June 30,

 

 

December 31,

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

Cash & cash equivalents

$

23,614

 

 

$

28,268

 

Accounts receivable, net

 

12,542

 

 

 

10,894

 

Prepaid and other assets

 

1,427

 

 

 

802

 

Total current assets

 

37,583

 

 

 

39,964

 

Equipment & improvements, net

 

2,063

 

 

 

2,109

 

Right-of-use assets

 

6,384

 

 

 

6,464

 

Deferred tax asset, 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 & 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

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

 

Common stock

 

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 & STOCKHOLDERS’ EQUITY

$

73,102

 

 

$

61,197

 

 

 

 

 

 

 

 

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands) – unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

 

For the Six Months

 

 

 

Ended June 30,

 

 

Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,379

 

 

$

3,436

 

 

$

3,424

 

 

$

3,484

 

Adjustments to reconcile net income to net cash provided

by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,018

 

 

 

360

 

 

 

1,662

 

 

 

681

 

Non-cash lease expense

 

 

267

 

 

 

287

 

 

 

511

 

 

 

481

 

Restructuring costs

 

 

 

 

 

11

 

 

 

6

 

 

 

115

 

Gain on sale of software product

 

 

 

 

 

(483

)

 

 

 

 

 

(483

)

Provision for doubtful accounts and other adjustments

to accounts receivable

 

 

(5

)

 

 

17

 

 

 

(9

)

 

 

8

 

Provision for excess and obsolete inventory

 

 

 

 

 

 

 

 

 

 

 

1

 

Loss on disposal of fixed assets

 

 

 

 

 

7

 

 

 

 

 

 

6

 

Stock based compensation

 

 

809

 

 

 

333

 

 

 

1,441

 

 

 

788

 

Changes in operating accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(654

)

 

 

(4,083

)

 

 

(1,637

)

 

 

(5,842

)

Prepaid expenses and other assets

 

 

(848

)

 

 

(332

)

 

 

(633

)

 

 

(138

)

Accounts payable and accrued liabilities

 

 

148

 

 

 

(409

)

 

 

(692

)

 

 

(526

)

Deferred revenue

 

 

(40

)

 

 

(51

)

 

 

262

 

 

 

(136

)

Net cash provided by (used in) operating activities

 

 

2,074

 

 

 

(907

)

 

 

4,335

 

 

 

(1,561

)

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of Circle operator business, net

 

 

 

 

 

 

 

 

(12,150

)

 

 

 

Acquisition of Smart Retail business, net

 

 

 

 

 

 

 

 

 

 

 

(3,974

)

Capital expenditures

 

 

(81

)

 

 

(177

)

 

 

(852

)

 

 

(287

)

Other investing activities

 

 

11

 

 

 

350

 

 

 

(204

)

 

 

350

 

Net cash provided by (used in) investing activities

 

 

(70

)

 

 

173

 

 

 

(13,206

)

 

 

(3,911

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from exercise of common stock warrants

 

 

2,151

 

 

 

 

 

 

4,196

 

 

 

 

Dividends paid on preferred stock

 

 

 

 

 

(33

)

 

 

 

 

 

(67

)

Other financing activities

 

 

3

 

 

 

 

 

 

21

 

 

 

(9

)

Net cash provided by (used in) financing activities

 

 

2,154

 

 

 

(33

)

 

 

4,217

 

 

 

(76

)

Net increase (decrease) in cash and cash equivalents

 

 

4,158

 

 

 

(767

)

 

 

(4,654

)

 

 

(5,548

)

Cash and cash equivalents, beginning of period

 

 

19,456

 

 

 

7,378

 

 

 

28,268

 

 

 

12,159

 

Cash and cash equivalents, end of period

 

$

23,614

 

 

$

6,611

 

 

$

23,614

 

 

$

6,611

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

2,074

 

 

$

(907

)

 

$

4,335

 

 

$

(1,561

)

Capital expenditures

 

 

(81

)

 

 

(177

)

 

 

(852

)

 

 

(287

)

Free cash flow

 

$

1,993

 

 

$

(1,084

)

 

$

3,483

 

 

$

(1,848

)

 

Contacts

IR INQUIRIES:
Charles Messman

Investor Relations

949-362-5800

IR@smithmicro.com

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