William W. Smith Jr., President and CEO of Smith Micro Software Inc. (NASDAQ:), recently sold 7,066 shares of the company’s common stock. The transaction comes as the company’s shares have declined nearly 90% over the past year, with the stock currently trading at $0.73. According to InvestingPro analysis, SMSI is trading below its Fair Value, with a market capitalization of approximately $13 million. The shares were sold at a weighted average price of $0.7801 each, amounting to a total transaction value of $5,512. Following this sale, Smith retains 3,194,533 shares indirectly through the Smith Living Trust. Additionally, he holds 120,704 shares directly. The sale was carried out for tax planning purposes, according to the filing details. InvestingPro subscribers have access to 13 additional key insights about SMSI, including detailed analysis of the company’s financial health, which is currently rated as weak, and comprehensive valuation metrics showing the stock trades at just 0.34 times book value.
In other recent news, Smith Micro Software (ETR:), a prepackaged software services company, has been facing potential delisting from the Nasdaq due to not meeting the minimum bid price requirement. The company has a 180-day period to regain compliance, ending on May 26, 2025. On the financial front, Smith Micro Software reported significant decreases in its Q3 2024 financial results, with revenue dropping 58% year-over-year to $4.6 million and a GAAP net loss of $6.4 million. The decline was primarily due to the termination of the Verizon (NYSE:) Family Safety contract and decreasing Sprint Safe and Found revenues.
Despite these challenges, the company has managed to reduce costs, resulting in $1.9 million in savings for Q3, with further savings anticipated in Q4. Smith Micro Software expects Q4 revenues to be between $5 million and $5.2 million, driven by expected increases in Family Safety revenues. The company also raised capital in October, adding approximately $6.9 million to its cash position. Looking ahead, Smith Micro Software aims for profitability by 2025, with a break-even point in the mid-$7 million range. These are recent developments that investors and analysts will be keeping a close eye on.
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