Shares of Smith Micro Software Inc., a maker of software for cell phones and other mobile devices, defied a down day on Wall Street Thursday, a day after the company narrowed its sales outlook for the balance of the year.
Investors sent shares up 16% in afternoon New York trading on a recent market value of $300 million.
Smith Micro projected that it would see 2010 yearly sales of $125 million to $135 million, which would be up 16% to 26% from 2009.
Analysts are expecting an average of $130 million in revenue.
It didn’t give a profit outlook. Analysts are looking for 2010 profits of $24 million, p from an expected profit of $22 million for 2009.
The outlook comes on the heels of Smith Micro’s fourth quarter results, which were in line with analysts’ estimates on sales but beat on profits.
Excluding stock compensation and other one-time charges, Smith Micro posted a profit of $9 million, roughly flat from the year-ago quarter and beating analysts’ expectation of $5 million in profits.
Smith Micro reported revenues of $30 million for the three months through December, up 13% from the same period a year earlier and in line with estimates.
Smith Micro ended the quarter with $46 million in cash and short-term assets.
The company makes software that allows for phones or PCs to connect to the Internet through a wireless service provider’s network.
The company also makes security software and software that does “over-the-air” downloads for music.
Customers include Verizon Wireless, a unit of New York’s Verizon Communications Inc., AT&T Inc., and T-Mobile USA Inc., a unit of Germany’s Deutsche Telekom AG, among others.
