William W. Smith Jr., the company’s president and CEO Smith Micro Software Inch. (NASDAQ:), recently sold 7,066 shares of the company’s common stock. The transaction comes as the company’s stock has fallen nearly 90% over the past year, with shares currently trading at $0.73. According to InvestingPro analysis, SMSI trades 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, for a total transaction value of $5,512. Following this sale, Smith retains 3,194,533 shares indirectly through the Smith Living Trust. Additionally, he directly holds 120,704 shares. The sale was made for the purposes of tax planning, according to the information from the application. InvestingPro subscribers have access to 13 additional key insights about SMSI, including a detailed analysis of the company’s financial health, which is currently rated weak, and comprehensive valuation metrics that show the stock trading at just 0.34 times book value.
In other recent news, Smith Micro Software ( ETR: ), a prepackaged software services company, is facing a potential delisting from the Nasdaq exchange for failing to meet minimum offering price requirements. The company has a 180-day period to re-establish compliance, which ends on May 26, 2025. On the financial front, Smith Micro Software reported a significant decline in its financial results in the third quarter of 2024, with revenue down 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 contract with Verizon (NYSE: ) Family Safety and a decrease in Sprint Safe and Found revenue.
Despite these challenges, the company was able to reduce costs, resulting in savings of $1.9 million for the third quarter, with further savings expected in the fourth quarter. Smith Micro Software expects fourth-quarter revenue to be between $5 million and $5.2 million, driven by an expected increase in family security revenue. The company also raised capital in October, adding roughly $6.9 million to its cash. Looking ahead, Smith Micro Software is targeting profitability by 2025, with a breakeven point in the mid-$7 million range. These are recent developments that investors and analysts will be watching closely.
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