Shares of Aliso Viejo-based Smith Micro Software Inc., a maker of software for cell phones and other mobile devices, on Wednesday reported second-quarter results that topped Wall Street’s profit expectations and were in line on revenue.
For the three months through June 30, the company recorded $31 million in sales, up 21% from a year earlier and in line with analysts’ expectations.
Excluding stock compensation, tax expenses, write-downs on assets and other one time costs, Smith Micro posted $7 million in profits, up 23% from the year-ago quarter and just ahead of analysts’ expected $6 million in profits.
The company counted $55 million in cash and short-term assets at the close of the second quarter.
Smith Micro didn’t give an outlook for the third quarter.
For the current quarter, analysts are looking for adjusted profits of $8 million, which would show a gain of 10% from a year earlier. Sales are pegged $34 million, which would be up 24%.
Smith Micro’s bread and butter is selling software that’s used by big cell phone service providers. Some of its software does over-the-air updates and helps mobile devices connect to a carrier’s network.
Big customers include Verizon Wireless, part of New York’s Verizon Communications Inc., Sprint Nextel Corp., AT&T Inc., Motorola Inc. and others.
The company also does what’s called connection management software for computer makers Dell Inc. and Hewlett-Packard Co.
A much smaller part of its business—roughly 10% of its $113 million in yearly sales—is selling a variety of software to consumers online and in stores.
The company’s shares were flat in afterhours trading on a recent market value of $319 million.
