Smith Micro Software, Inc. · NASDAQ:SMSI
Smith Micro Software — Investor Presentation (February 2006)
32 slides from Smith Micro Software's investor presentation, February 2006
Slide 1: Investor Presentation February 2006
INVESTOR PRESENTATION February 2006 Presented by: William W. Smith, Jr., President & CEO Andrew Schmidt, CFO Bruce Quigley, VP of Investor Relations and Business Development
Slide 2: Forward Looking Statements
Forward Looking Statements During the course of this presentation we may make forward-looking statements that involve risks and uncertainties, including without limitation risks and uncertainties relating to the company's financial prospects and projections, the company's ability to maintain sustain
Slide 3: Company Overview
Company Overview Smith Micro Software Is a Leading Provider of Wireless Software Solutions to Carriers and Handset Manufacturers Founded: 1983 2005 12 mo. results: IPO: 1995 ¾ Revenues: $20.3M - up 52% NASDAQ: SMSI ¾ Gross margins: 80% Customers: ¾ Net Income - $4.7M up 37% ¾ Carriers ¾ Di
Slide 4: Our Business: Products and Wireless Solutions
Our Business Wireless connectivity solutions for wireless carriers and device OEM OEM&&Wireless Wireless manufacturers. Wireless Solutions Wireless connectivity solutions for large enterprises ¾ Launched in Q2-05 ¾ First Customer Signed 2005 Wireless WirelessEnterprise Enterprise Wireless comp
Slide 5: Wireless & OEM
Wireless & OEM Wireless connectivity solutions for carriers deploying high speed data solutions, and hardware manufacturers, no matter what platform or technology they use: QuickLink® Mobile - Windows QuickLink® Mobile - Mac QuickLink® Mobile - Phonebook Generation Speed Technology Voice 2G CD
Slide 6: Expanding Mobile Workforce
Expanding Mobile Workforce U.S. Market Mobile Data Users (Millions) 140 120 100 80 128. 6 60 109.8 81. 5 40 49. 0 20 0 2003 2004 2005 2006 Source: Yankee Group 6
Slide 7: Expanding Mobile Data Market
Expanding Mobile Data Market U.S. Market Mobile Data Revenue (Billions) 6 5 4 3 5. 8 2 2. 9 1 1.1 0. 8 0 2003 2004 2005 2006 Source: Yankee Group 7
Slide 8: What QuickLink Mobile does…
What QuickLink® Mobile does… Data Kit PC Card Integrated Wireless WirelessData DataConnectivity Connectivity 8
Slide 9: QuickLink Mobile - Our Flagship Product
QuickLink® Mobile - Our Flagship Product Quicklink® Mobile software resides on the laptop: ¾ Provides user interface ¾ Wi-Fi and WWAN connectivity ¾ Allows for seamless transition from a Wi-Fi to WWAN connection 9
Slide 10: QuickLink Mobile Carrier Branding
QuickLink® Mobile Carrier Branding Verizon Wireless, the largest wireless carrier in the U.S., has standardized on QuickLink® Mobile for its its high speed wireless data connectivity solution branding it VZAccess Manager. Dual DualBranding Branding 10
Slide 11: QuickLink PhoneManager
QuickLink PhoneManager QuickLink PhoneManager ¾ Combine Phonebook & Calendar functions—in progress ¾ Real Time Calendar Push from Outlook ¾ Photo Management ¾ Music Management ¾ Sync Support Target OEM and Handset Manufacturer Consumer Product Opportunity 11
Slide 12: Carriers Hear the Sound of Music
Carriers Hear the Sound of Music Music moves consumers to transfer tunes to their mobile phones ¾ 2006 V CAST Music Essentials The mobile phone became a portable music device in 2005, but the significant growth will be in 2006 and beyond Strong opportunity to add product to other carriers 12
Slide 13: Camera Phone Unit Sales 2005
Camera Phone Unit Sales 2005 Managing 134M Pictures messages sent by Verizon Wireless customers in December ‘05 vs. 110M in the September ‘05 13
Slide 14: Projected Camera Sales for 2009
Projected Camera Sales for 2009 Managing “The explosion of digital images being fueled by camera-phones presents an unparalleled opportunity to find new ways to help picture takers — both business and consumer —save, manage, use, view, and enjoy their photos.” - Future Image Mobile Imaging Report 14
Slide 15: Compression - StuffIt Wireless
Compression - STUFFIT Wireless Compression technology developed out of Allume Systems acquisition The result of over 20 years of patented compression technology Compresses JPEG files up to 30% without loss of image quality Planned development includes compression of: ¾ MP3 & MPEG files ¾ Han
Slide 16: Wireless & OEM Sales Strategy
Wireless & OEM Sales Strategy We sell QuickLink Mobile® into: ¾ Wireless Carriers ¾ Hardware Manufacturers: Wireless handsets PC cards Customers value our expertise: ¾ "Out-of-Box Experience" for the consumer is key ¾ Simplification of service ¾ Works right the first time - prevents returns
Slide 17: Wireless Carriers Are King
Wireless Carrier’s Are King Wireless carriers set the “Standard” ¾ Dictate network hardware & software ¾ Specify bundled software to hardware manufacturers Smith Micro’s value ¾ Comprehensive solution ¾ Common interface across multiple hardware platforms Minimizes carrier tech support costs ¾
Slide 18: Strong Verizon Wireless Partnership
Strong Verizon Wireless Partnership Verizon Wireless made a $5 billion investment in its high-speed EV-DO wireless data service Smith Micro will leverage Verizon Wireless’ continued leadership in providing high-speed data connectivity solutions ¾ Currently serving 200 metropolitan areas ¾ Servin
Slide 19: Hardware Manufacturers
Hardware Manufacturers What hardware manufacturers do: ¾ Provide the basic platform Wireless handset PC card Smith Micro’s value to the handset manufacturer: ¾ Branded solutions ¾ Turn-key solutions ¾ Partner for secondary markets 19
Slide 20: Wireless Enterprise
Wireless Enterprise Quicklink® Mobile Enterprise ¾ Single client application ¾ Supports multiple high-speed mobile data networks EV-DO / 1xRTT UMTS / EDGE / GPRS ¾ Supports 802.1x Wi-Fi hotspots ¾ Supports various 802.1x security protocols Quicklink® Server ¾ Supports multiple operating syst
Slide 21: Wireless Enterprise Sales Channels
Wireless Enterprise Sales Channels Three-pronged Approach Enterprise Mobility Solutions Direct Systems Vertical Licensing Integrators Expose Leveraging existing Logistics/Transporta Compression/Utility B2B and SI tion, Insurance, Licensing to SMSI relationships Banking initial Corporate target
Slide 22: Consumer Product Line - Overview
Consumer Product Line - Overview Internet Security & Performance ¾ Protection from Spyware, Malware, and Spammers ¾ Cleaning & Enhancing the OS Compilations & Productivity ¾ Helping people manage and enjoy the digital lifestyle ¾ Solutions to OS and computer problems StuffIt ¾ Compression, Acc
Slide 23: Consumer Software Products
Consumer Software Products Smith Micro Software, Inc. Allume Systems Smith Micro Compression Desktop Fax Internet Utilities System Diagnostics 23
Slide 24: Revenue Growth Strategy
Revenue Growth Strategy Near term growth drivers: ¾ Continued adoption of 3G (EV-DO / UMTS) ¾ Continued deployment of wireless data offerings: Mid term growth drivers: ¾ Aggressively pursue new carrier customers ¾ Complementary wireless product sales Long term growth drivers: ¾ Enterprise adop
Slide 25: Experienced Management Team
Experienced Management Team Bill Smith - Chairman, President, CEO & Chairman ¾ Co-Founded SMSI in 1982 Andrew Schmidt – VP, CFO (2005) Bruce Quigley - VP Business Development & IR (1992) Dave Sperling – VP & CTO (1989) Rick Wyand – VP Wireless and OEM Sales (1999) Chris Lippincott – VP E
Slide 26: Financial Overview - Annual Results
Financial Overview - Annual Results Revenues Earnings $25 20.3 $20 $15 13.3 Millions $10 7.2 4.7 $5 3.5 $0 -0.9 -$5 2003 2004 2005 Revenue Growth Flat 85% 52% Net Income Growth Loss +100% 37% Diluted EPS ($.06) $.19 $.21 26
Slide 27: Financial Overview - Quarterly Revenue
Financial Overview - Quarterly Revenue 2003 2004 2005 $9,000 $8,000 $7,000 $6,000 Thousands $5,000 $4,000 $3,000 $2,000 $1,000 $0 Q1 Q2 Q3 Q4 Net NetRevenues Revenues 27
Slide 28: Financial Overview - Quarterly Results
Financial Overview - Quarterly Results 2003 2004 2005 $2,500 $2,000 Thousands $1,500 $1,000 $500 $0 Q1 Q2 Q3 Q4 Operating OperatingIncome Income 28
Slide 29: Balance Sheet Detail - As of 12/31/05
Balance Sheet Detail - As of 12/31/05 Cash and cash equivalents: $21.2M Cash per diluted share: $.89 Account receivable: $6.8M No debt Significant NOL carry-forward: $18.1M 29
Slide 30: Investment Thesis
Investment Thesis Large and growing market ¾ Key investment opportunity in wireless data market Strategic relationships ¾ Verizon Wireless with their $5B EV-DO deployment ¾ ALLTEL With their $1B EV-DO deployment ¾ Domestic and International expansion Right products for target markets ¾ Strong
Slide 31: 2006 Outlook
2006 Outlook Continued top-line & bottom line growth ¾ Organically through increasing wireless connectivity and new enterprise wins ¾ Continue to look for new strategic technology acquisitions Strategic relationships ¾ Internal growth ¾ M&A goal is to lead the technology curve, not to follow it
Slide 32: NASDAQ: SMSI
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