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Smith Micro Today Announces Notice of Termination from Tier 1 Carrier for the Company’s Family Safety Solution
Company Expects to Continue to Recognize Revenue Under the Contract Through Remainder of the Fiscal Year. PITTSBURGH--(BUSINESS WIRE)-- Smith Micro Software,
About this update from Smith Micro Software, Inc.
[{"type":"text","content":"\nCompany Expects to Continue to Recognize Revenue Under the Contract Through Remainder of the Fiscal Year.\n\n PITTSBURGH--(BUSINESS WIRE)--\nSmith Micro Software, Inc. (Nasdaq: SMSI) today announced that on February 21, 2023, the Company received written notice of contract termination from a U.S.-based Tier 1 carrier customer for the Company’s family safety solution, effective June 30, 2023. At the customer’s election, the Company remains obligated to deliver service under the agreement for a transition period of up to 180 days beyond June 30, 2023. The Company is reviewing and expects to take appropriate action to reduce expenses associated with the affected customer agreement, and will reallocate certain resources to the Company’s multiple other Tier 1 U.S. carrier customers and to its customers outside of the U.S.\n\n“We were surprised to have received this notice from our customer, and though we are disappointed, we believe we have positioned the Company well over the past few years to diversify our overall client base. This customer portfolio will continue to include our largest Tier 1 customer and another Tier 1 carrier that just recently entered into a new multi-year contract with us for our family safety solutions,” said William W. Smith Jr., President, and CEO of Smith Micro.\n\nMr. Smith continued, “Looking ahead, we will continue to honor our obligations under the terminating contract through the remainder of the fiscal year while receiving compensation in accordance with the terms of the existing contract. We will also immediately take steps to reallocate resources to accelerate growth and integration efforts with our other customers and partners. We will also accelerate the cost saving initiative that began last year, to better align our cost structure model as we look to return the Company to growth and profitability.”\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. From enabling the family digital lifestyle to providing powerful voice messaging capabilities, our solutions enrich today’s connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer IoT devices. The Smith Micro por...