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8-K - FORM 8-K - SMITH MICRO SOFTWARE, INC. | d103084d8k.htm |
Exhibit 99.1
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SMITH MICRO SOFTWARE
Investor Update
January 12, 2016
Smith Micro Software
NASDAQ: SMSIH
SMITH MICRO SOFTWARE forward thinking, Delivered Today.
SMSI Investor Jan 2016 V8.pdf
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SAFE HARBOR Statement
This presentation contains forward-looking statements that involve risks and uncertainties, including, without limitation, forward-looking statements relating to the Companys quarterly and annual revenue guidance, its financial prospects and other projections of its performance, the Companys ability to increase its business and the anticipated timing and financial performance of its new products and potential acquisitions. Among the important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are changes in demand for the Companys products from its customers and their end-users, new and changing technologies, customer acceptance of those technologies, customer concentration given that the majority of our sales depend on a few large client relationships, including Sprint, and the Companys ability to compete effectively with other software companies. These and other factors discussed in the Companys filings with the Securities and Exchange Commission, including its 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 presentation are made on the basis of the views and assumptions of management regarding future events and business performance as of the date of this release, and the Company does not undertake any obligation to update these statements to reflect events or circumstances occurring after the date of this presentation.
© 2016 Smith Micro Software, Inc. 2 * All rights reserved.
SMITH MICRO SOFTWARE forward thinking, Delivered Today.
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Smith Micro Experts in Mobile
RICH HERITAGE
DEEP EXPERTISE
Wireless Connectivity Heterogeneous Networks Device/Policy Management Voice/Video Comms 2D/3D Content
Heterogeneous Networks Multi-Platform, Multi-OS
Scalable Architectures Industry Standards
INDUSTRY PROVEN
Mobile Network Operators, Cable/MSOs, Device & Chip Manufacturers, Enterprises, Public Sector
© 2016 Smith Micro Software, Inc. 3 * All rights reserved.
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Company Focus
NETWORKS
Enriching Mobile Lifestyles
DEVICES
APPS
CONTENT
© 2016 Smith Micro Software, Inc.
All rights reserved. 4-
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NetWise Policy-on-Device Platform
Wi-Fi / Discovery/ Authentication
Location
/Event Triggers
Policy-on-Device
Network Device Connectivity IoT Management
7:26A
Device analytics
Quality of Service(QoS)
Wi-Fi ON
3G/4G IDLE Analytics Service (QoS)
© 2016 Smith Micro Software, Inc. 5 * All rights reserved. SMITH MICRO SOFTWARE forward thinking, Delivered Today.
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CommSuite Visual Messaging Platform
Visual
AniMates
Voicemail
Voice-to-Text -line Advertising
19M Subscribers Proven Revenue Engine (Revenue Share)
90 Device Models 3rd Party App integration
>1B Messages Per Quarter Carrier and Enterprise Integration
© 2016 Smith Micro Software, Inc. 6 * All rights reserved.
SMITH MICRO SOFTWARE Forward Thinking, Delivered Today.
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2015 Results* Sep YTD 2015 vs. 2014
Up Up Down Up $3.1M $4.0M $4.4M $8.4M
12% 21% 16% 100%
Revenue Gross Operating OpEx Margin Income
Revenue growth new NetWise customers
Profitability Near Breakeven
Cash YE 2015 will be Net Neutral with YE 2014
* Non-GAAP
© 2016 Smith Micro Software, Inc. 7 * All rights reserved.
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2015 Challenges
Early Projections Unmet
o Restated Guidance in Q3 o Now expect $39M -$40M in revenue for 2015 versus $37M in 2014
New Customer Delays
o Consolidation in Carrier/Cable Industries Slowed Deal Flow o Customer Roll-outs Taking
Longer than Expected o Hiring Slower Than Expected
Largest Customer in Transition
o Internal Restructuring o Slow Android Growth o Extensive Cost Reductions
FierceWireless
Topics: Service Provider Strategies
SHARE Sprint to take $150M charge for layoffs
Email Layoffs began last week as part of a larger effort to trim as much as $2B
Tweet
133
December 22, 2015 By Colin Gibbs
SHARE Sprint (NYSE: S) began slashing jobs last week as part of a round of layoffs expected to last through January, according to a filing with the SEC.
The beleaguered carrier hasnt disclosed how many jobs will be cut, but said in its filing that it expects to take a $150 million charge during the quarter for severance and other costs related to the layoffs. The reduction is expected to be largely completed by the end of January, Sprint said, and will include both management and non-management positions.
© 2016 Smith Micro Software, Inc. 8 * All rights reserved.
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Expected Impact on 2016
Sprint Revenues Slow Revenue Ramp Q1 Down From Q4; Down from New Deals Gap-filling in Q2-Q4
New 2016 Enterprise Deals
New 2016 Carrier & Cable/MSO Business
40000
35000
30000
25000
$ K 20000
2016 Sprint Revenues 15000
Pprojected Down 10000 25-32% YOY
15000
10000
5000
0
2015 2016 (YoY)
Sprint Base business New Cable/Carrier Enterprise
© 2016 Smith Micro Software, Inc. 9 * All rights reserved.
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Drivers of Recovery New Deals
1st Captivate Customer Mobile Marketing in Hospitality Q2-16 Rollout
Major Phone OEM
Device Management Q4-15 Launch, Growing in 2016
2nd Cable/MSO Device Analytics/Wi-Fi QoS Q1-16 Rollout
New Tier 1 Operator
3G/4G/Wi-Fi Management
Q2-16 Rollout
© 2016 Smith Micro Software, Inc. 10 * All rights reserved.
SMITH MICRO SOFTWARE forward thinking, Delivered Today.
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NetWise Captivate Mobile Marketing
PROMOTIONS
RIGHT PLACE, RIGHT TIME
OFFERS
Jewelry
Watches
On Sale RETAIL/BRANDS
Apply for Credit
VIRTUAL ASSISTANCE
ENTER Exit
Bank You are Survey rd How was
3 in FINANCIAL
your line; visit?
Est. wait SERVICES 10 mins
LOYALTY PROGRAMS
FOOT TRAFFIC/ RETENTION
HOSPITALITY/ Wine
Tasting TRAVEL at Bistro
4-5 pm
BIG DATA
Analytics
MOVIE THEATER
NOW SHOWING
Movie
Front Desk
E-SERVICES/ Trailer E-TAILERS
© 2016 Smith Micro Software, Inc. 10 * All rights reserved.
SMITH MICRO SOFTWARE forward thinking, Delivered Today.
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Drivers of Recovery Hot Markets
Mobile Marketing
IDC Analyze the Future
Digital Device Use Influences $1.7 Trillion in In-Store Retail Sales
Mobile usage before, during shopping trips drivers $970
Billion in brick-and-mortar sales
June 11, 2015 Retail & Ecommerce
Big Data Analytics
New IDC Forecast Sees Worldwide Big Data
Technology and Services Market Growing to $48.6B in 2019, Driven by Wide Adoption Across Industries
09 Nov 2015
Wi-Fi Quality of Service
Wi-Fi service revenues driven by the transition to carrier-grade hotspots will grow to over $150 billion by 2018, which would represent 9% of total global carrier service revenues. 20 May 2015
© 2016 Smith Micro Software, Inc. 12 * All rights reserved.
SMITH MICRO SOFTWARE forward thinking, Delivered Today.
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Evolving to Meet New Market Needs
Wi-Fi Cellular Connections
Analog Connections
Connections Founded
1982 2016
FAX
PC
Smartphone
Connected
Tablet
World
© 2016 Smith Micro Software, Inc. 13 * All rights reserved.
SMITH MICRO SOFTWARE forward thinking, Delivered Today.
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Smith Micro Advantages
Best Quality of Great Products
Experience
INVESTORS
Richer Long Term
Consumer Customers
Engagement
Hot Markets
Better
Intelligence
CUSTOMERS Improved
Financials
Increased
Revenue/
Efficiency Stock Trading
at <1X
Revenue
© 2016 Smith Micro Software, Inc. 14 * All rights reserved.
SMITH MICRO SOFTWARE forward thinking, Delivered Today.
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Smith Micro Software
NASDAQ: SMSI
www.smithmicro.com
Smith Micro Software, Inc.
Corporate Headquarters
51 Columbia Aliso Viejo, CA 92656
+1 949-362-5800
+1 949-362-2300
© 2016 Smith Micro Software, Inc.
All rights reserved.
SMITH MICRO SOFTWARE forward thinking, Delivered Today.