Smith Micro 4Q profit falls as expenses overshadow revenue growth; adjusted profit tops views

Wednesday, February 24, 2010

Smith Micro 4Q profit dips as expenses rise

ALISO VIEJO, Calif. — Smith Micro Software Inc. said Wednesday that its fourth-quarter profit fell 8 percent as higher expenses overshadowed revenue growth. The company’s adjusted earnings beat analyst estimates, though.

Shares of Smith Micro, which makes software for mobile devices, rose 52 cents, or 6.7 percent, in after-hours trading. The stock had finished regular trading down 20 cents at $7.73.

For the quarter that ended Dec. 31, Smith Micro earned $1.2 million, or 4 cents per share, compared with $1.3 million, or 4 cents per share, in the year-ago quarter.

When excluding one-time items, the company earned 26 cents per share. Analysts polled by Thomson Reuters, who typically exclude one-time items from their estimates, expected a profit of 16 cents per share.

Revenue rose 12 percent to $29.7 million from $26.5 million in the year-ago quarter. Analysts were looking for $29.6 million.

Operating expenses climbed 17 percent to $22.3 million, due mainly to a 36 percent increase in research and development expenses, which rose to $10.5 million.

For the full year, Smith Micro earned $4.8 million, or 14 cents per share, compared with a loss of $732,000, or 2 cents per share, in 2008. Revenue rose 9 percent to $107.3 million from $98.4 million in 2008.

Smith Micro predicted revenue of $125 million to $135 million for the current year. Analysts have been looking for $129.1 million.

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