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Smith Micro Pops on Sales Outlook

Shares of Aliso Viejo’s Smith Micro Software Inc., a maker of software for cell phones and for connecting mobile devices to wireless networks, rose Tuesday after the company narrowed its outlook for the fourth quarter in line with Wall Street’s expectations.

The stock closed up more than 3% to a market value of about $550 million.

For the fourth quarter, Smith Micro said it’s expecting revenue of $35 million, up about 36% from a year earlier and in line with analysts’ expected $36 million in sales.

It didn’t give a profit outlook.

Analysts, on average, are looking for $8 million in profits, down roughly 8% from a year earlier.

For 2011, Smith Micro said it’s expecting sales of $150 million to $160 million, in line with Wall Street’s expectation of $153 million in sales, up 17% from 2010’s sales.

Analysts are expecting adjusted 2011 profits of $32 million, up about 12% from 2010.

Smith Micro’s shares are up some 60% in the past three months. The company makes compression and connectivity software for cell phones, laptops and other mobile devices.

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