Smith Micro misses Q4 revenue expectations, CEO to step down

Overview

• Mobile software developer's Q4 revenue declined 20% yr/yr, missing analyst expectations

• GAAP net loss for Q4 increased slightly compared to previous year

• Company announced leadership change with Tim Huffmyer as new CEO

Outlook

• Company did not provide specific financial guidance for the future

Result Drivers

• COST REDUCTION - Smith Micro reduced its cost structure and optimized spending to support innovation, despite revenue decline

• SAFEPATH FOCUS - Co emphasized strategic focus on SafePath OS solutions for kids and seniors to expand role with Tier 1 customers

Company press release: ID:nBw8wX5la

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Smith Micro Software Inc is $4.00, about 669.2% above its March 3 closing price of $0.52

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