Jefferies Cuts Price Targets on Smith Micro Software (SMSI), Wont Be Profitable Until Q4:12
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Price: $2.98 +0.34%
Rating Summary:
7 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
7 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reiterating its Hold rating on shares of Smith Micro Software (NASDAQ: SMSI) and is lowering its price target from $1.75 to $1.10 following Q3 results.
The company reported quarterly results with $12.6 million in revenue and EPS of ($0.27), inline with its pre-announced results. Management refused to provide any forward guidance on sales of free-cash-flows.
The firm doesn't forecast that SMSI will be profitable until Q4 of fiscal 2012 and notes that revenues need to be roughly $20 million for this to be achieved. Management guided to $17-$18 million in opex by Q2.
Jefferies highlights that revenues should see a nice gain in the second half of the year after signing deals with Reliance and MTS in India.
An analyst at Jefferies comments, "we believe that SMSI's weakened financial position and stock price make it less likely that Verizon (NYSE: V) will standardize on SMSI's products for managing its Android phones. Therefore 2012 will be more focused on cost cuts, new customer trials, and gradually ramping revenues back up, which will likely be a challenging exercise."
The firm is cutting its FY11 and FY12 EPS estimates from ($0.45) and ($0.09) to ($0.72) and ($0.38). Jefferies also reduced its revenue estimates for the two years from $72.8 million and $92 million to $60.4 million and $62.6 million.
For more ratings news on Smith Micro Software click here and for the rating history of Smith Micro Software click here.
Shares of Smith Micro Software closed at $1.28 yesterday.
The company reported quarterly results with $12.6 million in revenue and EPS of ($0.27), inline with its pre-announced results. Management refused to provide any forward guidance on sales of free-cash-flows.
The firm doesn't forecast that SMSI will be profitable until Q4 of fiscal 2012 and notes that revenues need to be roughly $20 million for this to be achieved. Management guided to $17-$18 million in opex by Q2.
Jefferies highlights that revenues should see a nice gain in the second half of the year after signing deals with Reliance and MTS in India.
An analyst at Jefferies comments, "we believe that SMSI's weakened financial position and stock price make it less likely that Verizon (NYSE: V) will standardize on SMSI's products for managing its Android phones. Therefore 2012 will be more focused on cost cuts, new customer trials, and gradually ramping revenues back up, which will likely be a challenging exercise."
The firm is cutting its FY11 and FY12 EPS estimates from ($0.45) and ($0.09) to ($0.72) and ($0.38). Jefferies also reduced its revenue estimates for the two years from $72.8 million and $92 million to $60.4 million and $62.6 million.
For more ratings news on Smith Micro Software click here and for the rating history of Smith Micro Software click here.
Shares of Smith Micro Software closed at $1.28 yesterday.
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