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Smith Micro Reports Fourth Quarter and Fiscal Year 2020 Financial Results

Smith Micro Reports Fourth Quarter and Fiscal Year 2020 Financial Results

Smith Micro Software, Inc. (NASDAQ: SMSI) (“Smith Micro” or the “Company”) today reported financial results for its fourth quarter and fiscal year ended December 31, 2020.

“2020 was a very successful year for Smith Micro,” said William W. Smith, Jr., President and CEO of Smith Micro Software. “Despite unique challenges caused by a global pandemic, we achieved our best fiscal year in nearly a decade and grew annual revenues 18% year-over-year.

“During 2020, we also strengthened our future business case and technology portfolio by completing the integration of Circle’s parental controls and enhancing our SafePath® Connected Lifestyle Platform with new driver safety functionality, while also bringing to market key functionality for our ViewSpot® smart retail solution,” Smith continued. “Despite the substantial capital investment that these activities required, we remained profitable throughout the year and generated $7.9 million in cash from operations.”

Fourth Quarter 2020 Financial Results

Smith Micro reported revenue of $12.4 million for the fourth quarter ended December 31, 2020, compared to $12.3 million reported in the fourth quarter ended December 31, 2019.

Fourth quarter 2020 gross profit was $11.0 million compared to $11.3 million reported in the fourth quarter of 2019.

Gross profit as a percentage of revenue was 89 percent for the fourth quarter of 2020 compared to 92 percent for the fourth quarter of 2019.

Generally accepted accounting principles in the United States (“GAAP”) net income available to common stockholders for the fourth quarter of 2020 was $580 thousand, or $0.01 diluted earnings per share, compared to GAAP net income available to common stockholders of $3.7 million, or $0.09 diluted earnings per share, for the fourth quarter of 2019.

Non-GAAP net income (which excludes stock-based compensation, amortization of intangibles, transaction gains, and acquisitions costs) for the fourth quarter of 2020 was $1.4 million, or $0.03 diluted earnings per share, compared to non-GAAP net income of $4.3 million, or $0.10 diluted earnings per share, for the fourth quarter of 2019.

Fiscal Year 2020 Financial Results

Smith Micro reported revenue of $51.3 million for the year ended December 31, 2020, compared to $43.3 million reported in the year ended December 31, 2019.

Gross profit for the year ended December 31, 2020 was $46.1 million compared to $39.4 million reported for the same period in 2019.

Gross profit as a percentage of revenue was 90 percent for the year ended December 31, 2020 compared to 91 percent for the year ended December 31, 2019.

GAAP net income available to common stockholders for the year ended December 31, 2020 was $4.2 million, or $0.10 diluted earnings per share, compared to GAAP net income available to common stockholders of $10.6 million, or $0.29 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 year ended December 31, 2020 was $10.4 million, or $0.24 diluted earnings per share, compared to non-GAAP net income of $12.8 million, or $0.35 diluted earnings per share, for the year ended December 31, 2019.

Total cash and cash equivalents at December 31, 2020 were $25.8 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, March 8, 2021 at 4:30 p.m. ET, to discuss the Company’s fourth quarter and fiscal year 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 12/31/20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

10,994

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

$

-

 

 

$

10,994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

2,649

 

 

 

(145

)

 

 

 

 

(383

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

2,121

 

Research and development expenses

 

5,297

 

 

 

(147

)

 

 

 

 

(332

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

4,818

 

General and administrative expenses

 

3,060

 

 

 

(520

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

2,540

 

Restructuring expense

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

Total operating expenses

 

11,006

 

 

 

(812

)

 

 

 

 

(715

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

9,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for

income taxes

 

696

 

 

 

812

 

 

 

 

 

715

 

 

 

 

 

(711

)

 

 

 

 

-

 

 

 

-

 

 

 

1,512

 

Net income available to

common stockholders

 

580

 

 

 

812

 

 

 

 

 

715

 

 

 

 

 

(711

)

 

 

 

 

-

 

 

 

-

 

 

 

1,396

 

Earnings per share: basic

 

0.01

 

 

 

0.02

 

 

 

 

 

0.02

 

 

 

 

 

(0.02

)

 

 

 

 

-

 

 

 

-

 

 

 

0.03

 

Earnings per share: diluted

 

0.01

 

 

 

0.02

 

 

 

 

 

0.02

 

 

 

 

 

(0.02

)

 

 

 

 

-

 

 

 

-

 

 

 

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 12/31/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

11,253

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

$

-

 

 

$

11,253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

1,988

 

 

 

(67

)

 

 

 

 

(74

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

1,847

 

Research and development expenses

 

3,194

 

 

 

(72

)

 

 

 

 

(153

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

2,969

 

General and administrative expenses

 

2,400

 

 

 

(215

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

(74

)

 

 

-

 

 

 

2,111

 

Restructuring expense

 

40

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

40

 

Total operating expenses

 

7,622

 

 

 

(354

)

 

 

 

 

(227

)

 

 

 

 

-

 

 

 

 

 

(74

)

 

 

-

 

 

 

6,967

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for

income taxes

 

3,743

 

 

 

354

 

 

 

 

 

227

 

 

 

 

 

-

 

 

 

 

 

74

 

 

 

-

 

 

 

4,398

 

Net income available to common

stockholders

 

3,671

 

 

 

354

 

 

 

 

 

227

 

 

 

 

 

-

 

 

 

 

 

74

 

 

 

-

 

 

 

4,326

 

Earnings per share: basic

 

0.10

 

 

 

0.01

 

 

 

 

 

0.01

 

 

 

 

 

-

 

 

 

 

 

0.00

 

 

 

-

 

 

 

0.11

 

Earnings per share: diluted

 

0.09

 

 

 

0.01

 

 

 

 

 

0.01

 

 

 

 

 

-

 

 

 

 

 

0.00

 

 

 

-

 

 

 

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended 12/31/20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

46,110

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

$

-

 

 

$

46,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

10,698

 

 

 

(549

)

 

 

 

 

(1,608

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

8,541

 

Research and development expenses

 

19,071

 

 

 

(559

)

 

 

 

 

(1,312

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

17,200

 

General and administrative expenses

 

12,801

 

 

 

(1,956

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

(918

)

 

 

-

 

 

 

9,927

 

Restructuring expense

 

19

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

19

 

Total operating expenses

 

42,589

 

 

 

(3,064

)

 

 

 

 

(2,920

)

 

 

 

 

-

 

 

 

 

 

(918

)

 

 

-

 

 

 

35,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for

income taxes

 

4,325

 

 

 

3,064

 

 

 

 

 

2,920

 

 

 

 

 

(711

)

 

 

 

 

918

 

 

 

-

 

 

 

10,516

 

Net income available to

common stockholders

 

4,165

 

 

 

3,064

 

 

 

 

 

2,920

 

 

 

 

 

(711

)

 

 

 

 

918

 

 

 

-

 

 

 

10,356

 

Earnings per share: basic

 

0.10

 

 

 

0.08

 

 

 

 

 

0.07

 

 

 

 

 

(0.02

)

 

 

 

 

0.02

 

 

 

-

 

 

 

0.25

 

Earnings per share: diluted

 

0.10

 

 

 

0.07

 

 

 

 

 

0.07

 

 

 

 

 

(0.02

)

 

 

 

 

0.02

 

 

 

-

 

 

 

0.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended 12/31/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

39,419

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

 

 

$

-

 

 

$

-

 

 

$

39,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

7,517

 

 

 

(247

)

 

 

 

 

(369

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

6,901

 

Research and development expenses

 

11,682

 

 

 

(278

)

 

 

 

 

(563

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

10,841

 

General and administrative expenses

 

9,921

 

 

 

(969

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

(152

)

 

 

-

 

 

 

8,800

 

Restructuring expense

 

194

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

194

 

Total operating expenses

 

29,314

 

 

 

(1,494

)

 

 

 

 

(932

)

 

 

 

 

-

 

 

 

 

 

(152

)

 

 

-

 

 

 

26,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for

income taxes

 

10,802

 

 

 

1,494

 

 

 

 

 

932

 

 

 

 

 

(483

)

 

 

 

 

152

 

 

 

-

 

 

 

12,897

 

Net income available to common

stockholders

 

10,603

 

 

 

1,494

 

 

 

 

 

932

 

 

 

 

 

(483

)

 

 

 

 

152

 

 

 

119

 

 

 

12,817

 

Earnings per share: basic

 

0.31

 

 

 

0.04

 

 

 

 

 

0.03

 

 

 

 

 

(0.01

)

 

 

 

 

0.00

 

 

 

0.00

 

 

 

0.37

 

Earnings per share: diluted

 

0.29

 

 

 

0.04

 

 

 

 

 

0.03

 

 

 

 

 

(0.01

)

 

 

 

 

0.00

 

 

 

0.00

 

 

 

0.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

unaudited

 

 

audited

 

 

For the Three Months

 

 

For the Twelve Months

 

 

Ended December 31,

 

 

Ended December 31,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues

$

12,416

 

 

$

12,278

 

 

$

51,300

 

 

$

43,346

 

Cost of revenues

 

1,422

 

 

 

1,025

 

 

 

5,190

 

 

 

3,927

 

Gross profit

 

10,994

 

 

 

11,253

 

 

 

46,110

 

 

 

39,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

2,649

 

 

 

1,988

 

 

 

10,698

 

 

 

7,517

 

Research and development

 

5,297

 

 

 

3,194

 

 

 

19,071

 

 

 

11,682

 

General and administrative

 

3,060

 

 

 

2,400

 

 

 

12,801

 

 

 

9,921

 

Restructuring expense

 

 

 

 

40

 

 

 

19

 

 

 

194

 

Total operating expenses

 

11,006

 

 

 

7,622

 

 

 

42,589

 

 

 

29,314

 

Operating income (loss)

 

(12

)

 

 

3,631

 

 

 

3,521

 

 

 

10,105

 

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

2

 

 

 

111

 

 

 

96

 

 

 

228

 

Gain on sale of software product

 

711

 

 

 

 

 

 

711

 

 

 

483

 

Other expense, net

 

(5

)

 

 

1

 

 

 

(3

)

 

 

(14

)

Income before provision for income taxes

 

696

 

 

 

3,743

 

 

 

4,325

 

 

 

10,802

 

Income tax expense

 

116

 

 

 

72

 

 

 

160

 

 

 

80

 

Net income

 

580

 

 

 

3,671

 

 

 

4,165

 

 

 

10,722

 

Less preferred stock dividends

 

 

 

 

 

 

 

 

 

 

(119

)

Net income available to common stockholders

$

580

 

 

$

3,671

 

 

$

4,165

 

 

$

10,603

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.01

 

 

$

0.10

 

 

$

0.10

 

 

$

0.31

 

Diluted

$

0.01

 

 

$

0.09

 

 

$

0.10

 

 

$

0.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

41,262

 

 

 

38,501

 

 

 

40,808

 

 

 

34,513

 

Diluted

 

43,305

 

 

 

41,767

 

 

 

42,764

 

 

 

36,991

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

audited

 

 

audited

 

 

December 31,

 

 

December 31,

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

Cash & cash equivalents

$

25,754

 

 

$

28,268

 

Accounts receivable, net

 

12,347

 

 

 

10,894

 

Prepaid and other assets

 

1,189

 

 

 

802

 

Total current assets

 

39,290

 

 

 

39,964

 

Equipment & improvements, net

 

2,170

 

 

 

2,109

 

Right-of-use assets

 

5,785

 

 

 

6,464

 

Deferred tax asset, net

 

 

 

 

94

 

Other assets

 

694

 

 

 

234

 

Intangible assets, net

 

12,698

 

 

 

4,535

 

Goodwill

 

12,266

 

 

 

7,797

 

TOTAL ASSETS

$

72,903

 

 

$

61,197

 

 

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

Accounts payable

$

2,282

 

 

$

2,050

 

Accrued payroll and benefits

 

2,867

 

 

 

2,107

 

Current operating lease liabilities

 

1,433

 

 

 

1,221

 

Other accrued liabilities

 

216

 

 

 

244

 

Deferred revenue

 

1,572

 

 

 

98

 

Total current liabilities

 

8,370

 

 

 

5,720

 

 

 

 

 

 

 

 

 

Operating lease liabilities

 

4,805

 

 

 

5,774

 

Deferred rent

 

887

 

 

 

885

 

Deferred tax liability, net

 

59

 

 

 

 

Other long-term liabilities

 

66

 

 

 

134

 

Total non-current liabilities

 

5,817

 

 

 

6,793

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

Common stock

 

41

 

 

 

38

 

Additional paid in capital

 

279,905

 

 

 

274,041

 

Accumulated comprehensive deficit

 

(221,230

)

 

 

(225,395

)

Total stockholders' equity

 

58,716

 

 

 

48,684

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

72,903

 

 

$

61,197

 

 

 

 

 

 

 

 

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

unaudited

 

 

audited

 

 

 

For the Three Months

 

 

For the Twelve Months

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

580

 

 

$

3,671

 

 

$

4,165

 

 

$

10,722

 

Adjustments to reconcile net income to net cash provided

by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

906

 

 

 

344

 

 

 

3,582

 

 

 

1,341

 

Non-cash lease expense

 

 

305

 

 

 

224

 

 

 

1,110

 

 

 

954

 

Restructuring costs

 

 

 

 

 

40

 

 

 

19

 

 

 

194

 

Gain on sale of software product

 

 

(711

)

 

 

 

 

 

(711

)

 

 

(483

)

Provision for doubtful accounts and other adjustments

to accounts receivable

 

 

(1

)

 

 

16

 

 

 

(60

)

 

 

143

 

Provision for excess and obsolete inventory

 

 

 

 

 

 

 

 

 

 

 

1

 

Loss on disposal of fixed assets

 

 

 

 

 

 

 

 

 

 

 

6

 

Stock based compensation

 

 

812

 

 

 

355

 

 

 

3,064

 

 

 

1,494

 

Deferred income taxes

 

 

153

 

 

 

97

 

 

 

153

 

 

 

97

 

Changes in operating accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(2,428

)

 

 

220

 

 

 

(1,269

)

 

 

(3,811

)

Prepaid expenses and other assets

 

 

142

 

 

 

(84

)

 

 

(388

)

 

 

(32

)

Accounts payable and accrued liabilities

 

 

(121

)

 

 

284

 

 

 

(1,925

)

 

 

(417

)

Deferred revenue

 

 

11

 

 

 

(7

)

 

 

184

 

 

 

(221

)

Net cash provided by (used in) operating activities

 

 

(352

)

 

 

5,160

 

 

 

7,924

 

 

 

9,988

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of Circle operator business, net

 

 

 

 

 

 

 

 

(13,500

)

 

 

 

Acquisition of Smart Retail business, net

 

 

 

 

 

 

 

 

 

 

 

(3,974

)

Capital expenditures

 

 

(111

)

 

 

(835

)

 

 

(1,323

)

 

 

(1,659

)

Proceeds from sale of software products

 

 

335

 

 

 

7

 

 

 

367

 

 

 

370

 

Other investing activities

 

 

 

 

 

 

 

 

(225

)

 

 

 

Net cash provided by (used in) investing activities

 

 

224

 

 

 

(828

)

 

 

(14,681

)

 

 

(5,263

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from exercise of common stock warrants

 

 

 

 

 

54

 

 

 

4,196

 

 

 

11,457

 

Dividends paid on preferred stock

 

 

 

 

 

 

 

 

 

 

 

(119

)

Other financing activities

 

 

10

 

 

 

12

 

 

 

47

 

 

 

46

 

Net cash provided by financing activities

 

 

10

 

 

 

66

 

 

 

4,243

 

 

 

11,384

 

Net increase (decrease) in cash and cash equivalents

 

 

(118

)

 

 

4,398

 

 

 

(2,514

)

 

 

16,109

 

Cash and cash equivalents, beginning of period

 

 

25,872

 

 

 

23,870

 

 

 

28,268

 

 

 

12,159

 

Cash and cash equivalents, end of period

 

$

25,754

 

 

$

28,268

 

 

$

25,754

 

 

$

28,268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

(352

)

 

$

5,160

 

 

$

7,924

 

 

$

9,988

 

Capital expenditures

 

 

(111

)

 

 

(835

)

 

 

(1,323

)

 

 

(1,659

)

Free cash flow

 

$

(463

)

 

$

4,325

 

 

$

6,601

 

 

$

8,329

 

 

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20210308005015/en/