Boston, MA, 03/10/2014 – By the end of the fiscal year 2011, Smith Micro Software, Inc. (NASDAQ:SMSI) had seen a significant drop in its revenue. There were many reasons to be associated with the downfall, introduction of the mobile hotspot device was a major one. As a result of the decrease in revenues in the year 2011, SMSI had taken certain steps in the year 2012 and 2013. Here is an annual report on the financial year 2013 for SMSI.
The revenues in the fiscal year 2013 had dropped to $42.7 million in comparison to $43.3 million in the year 2012. This is about 1.5% or a total of $0.6 million downfall in revenues. This annual downfall which consists of the downfall in the wireless revenues of Smith Micro Software, Inc. (NASDAQ:SMSI) is considered to be the effect of lowering in sales of the connecting manager products. This decrease in demand in the North America of the legacy connection management products is an after effect caused by the introduction of mobile hotspot devices and due to the fact that smartphones and tablets have not become capable of acting as wireless hotspots.
Similar to the revenues, there has been a slide in the gross profit of Smith Micro Software, Inc. (NASDAQ:SMSI). The profit slid down to $33 million in the fiscal year 2013, or a downfall of 5.5% of the gross profit of the fiscal year 2012. The company has experienced a rise in cost of revenues during the fiscal year 2013. Another low point in the annual report is the downfall in the cost of research and development of the company which is directly indicating towards the slow growth of the company during the fiscal year 2013.
The result of the performance of SMSI in the fiscal year 2013 shows a sum of $14.8 million in cash with the company which has increased from the $14.5 million it had at the end of fiscal year 2012. Smith Micro Software, Inc. (NASDAQ:SMSI) is expected to slow down its usage of cash in the coming twelve months and reconsider some of its decisions taken in the year 2013 for the betterment of the company.