Business
Smith Micro Executes Previously Announced Cost Reduction Plans
Company Expects to Reach Profitability No Later Than the End of the Third Quarter of Fiscal Year 2023 PITTSBURGH--(BUSINESS WIRE)-- Smith Micro Software,
About this update from Smith Micro Software, Inc.
[{"type":"text","content":"\nCompany Expects to Reach Profitability No Later Than the End of the Third Quarter of Fiscal Year 2023\n\n PITTSBURGH--(BUSINESS WIRE)--\nSmith Micro Software, Inc. (Nasdaq: SMSI) (“Smith Micro” or the “Company”) today provided an update to its previously announced cost reduction initiatives. In furtherance of these initiatives, the Company earlier this month executed workforce reductions in the United States and Portugal and announced the further reduction of its global workforce in Serbia and Slovakia. In the aggregate, these actions will result in a reduction of approximately 26% of the Company’s total global workforce. Along with these actions, the Company announced its decision to close its Slovakian operations, effective June 30, 2023.\n\nIn addition, the Company has reduced the base salaries of its executive team and the fees paid to its Board of Directors and suspended its quarterly bonus program, in all cases until the Company returns to profitability on a non-GAAP basis, including the effects of the restored salaries, board fees and bonus program. The Company has also continued its ongoing optimization initiatives related to third-party costs, as its efforts to migrate family safety customers to the Company’s SafePath® platform near completion.\n\n“As we discussed on our recent earnings conference call, we are very focused on bringing our cost structure into alignment. I am pleased with the swift actions that we have taken, which we believe give us a clear path to achieve our goal of profitability no later than the end of our fiscal third quarter of this year,” said William W. Smith Jr., President and CEO of Smith Micro. “We are targeting an additional $4 million per quarter reduction in costs across the organization compared to the adjusted expenses reported for the fourth quarter of 2022.”\n\nMr. Smith continued, “We have made substantial progress to date, and will continue to drive cost synergies as we complete our SafePath platform migration efforts, with the expected launch by one of our Tier 1 carrier customers on the SafePath platform during the second half of this year.”\n\nAbout Smith Micro Software, Inc.\n\nSmith Micro develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers, cable MSOs and mobile device retailers around the world....