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Thursday, Mar 28, 2024
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Womack Bids Farewell to Business Journal, But Not OC

It’s hard for me to believe, even as I type this, but this will be my last column.

I am moving on from the Orange County Business Journal to take a job at Investor’s Business Daily in Los Angeles.

I’ve thoroughly enjoyed my time here and honestly can say I looked forward to coming into the office each day.

The people here are great, as is this newspaper.

OC is packed with some of the highest-profile technology companies in the world,and that just made my job fun.

Also, the people in technology in OC have been helpful, making it a lot easier to write my stories.

I take with me many good memories, and here’s just a random sampling, both big and small.

I’ll remember the great pizza snacks at the International Consumer Electronics Show at the MGM Grand party for computer bag maker Targus Corp. of Anaheim.

I’ll remember literally chasing down Scott McGregor, chief executive of Broadcom Corp., after a tech group meeting at the University Club at the University of California, Irvine.

I’ll remember how great it was to score an early morning space on the first floor of the parking garage when I arrived at work.

I’ll remember my co-workers scoffing at my adoration for the University of Oregon Ducks (actually, I can’t blame them for that one).

But know this: I plan to continue living in OC and will commute up to my new employer near Marina del Rey.

I’m sure the Business Journal will find someone great to take on this beat.

But to all of you I didn’t get a chance to tell I was leaving, thanks for your help.

Godspeed.


Funding Call

Rancho Santa Margarita-based Vangard Voice Systems Inc. has landed $3 million in an initial round of funding from Berkshire Ventures LLC.

Vangard makes software that makes voice recognition software easier to use. It’s designed to help software quickly decide where a voice command should go. It could help distinguish between the words “for” and “four” and quickly put the number four into a field on a spreadsheet.

This can save other software developers time and effort,and give them the ability to sell a simple voice recognition software package.

Potential industries include healthcare, public safety and the federal government.

The funding will help Vangard beef up its staff and increase engineering and marketing efforts. The company has about 10 employees.

As part of the funding deal, Vangard is opening an office in the Washington, D.C., area to go after potential government clients.

Bob Bova, chief executive of Vangard, said the company could reach $1.2 million to $1.5 million in sales next year.

“We’ve been in development for five years. The product is essentially finished,” Bova said.


Smith Micro Surge

Smith Micro Software Inc. is climbing again.

The Aliso Viejo company has seen its fan base expand as optimism grows for its software that lets cell phone users connect their handsets to their computers.

The stock, which had fallen close to 50% from July to August, has regained steam and now is sitting at its highs for the year at more than $16 with a recent market value of $400 million.

It was at half that a year ago. Two years ago, it traded for less than $4.

The company has landed a couple of recent analyst upgrades, announced a potential stock offering of $100 million for possible acquisitions and seems to be winning contracts.

Smith Micro’s prospects are tied to the nation’s largest wireless carrier: Verizon Wireless, part of New York-based Verizon Communications Inc.

“Smith Micro benefits directly from the adoption of wireless broadband and related data services at Verizon,” wrote analyst James Alexander with Jefferies & Co. in a note that initiated coverage on Smith Micro with a stock rating of “buy” in September. “A robust portfolio of new wireless connectivity and data handling products should drive top line growth and boost the operating margin in 2007.”

Smith Micro makes software that lets laptops, digital assistants and other devices get on the Internet in areas with a large wireless network coverage area. This means users no longer have to find a “hot spot” at a coffeehouse or bookstore.

The company also makes software called Music Essentials Kit for Verizon Wireless that lets users connect their phones to a computer and send songs to the handsets.

Smith Micro is set to roll out other software packages for tapping and using music and pictures on phones as well.

The company is bouncing back from concerns sparked by its second-quarter financials.

Smith Micro said revenue in the quarter hit a record $12.6 million, up 277% from the year-ago period. Adjusted income also hit a record at $3.2 million, up from just $764,000 a year earlier.

Its cash stash grew as well during the quarter to $31.3 million, up about 20% from the prior quarter.

But there have been concerns about gross profit margins that declined after sales of the music kit took off, said Christin Armacost, an analyst with New York Lazard Capital Markets.

This caught some by surprise.

Earlier this month, Armacost said in a note that Verizon is increasing the number of phones with the Music Essential Kit.

“Bundling, promotions, and the increased number of phones remain the primary drivers of Music Essential’s Kit revenue, which nearly doubled in Q2 without any promotions and only six phones available,” Armacost wrote in a note in which she increased her estimates for the third quarter.

She added her checks with suppliers for the cards that enable laptops to use the networks showed that demand was growing for the service.

Smith Micro’s third-quarter results are due Wednesday.

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