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PITTSBURGH, PA – Smith Micro Software , Inc. (NASDAQ:SMSI), a provider of software solutions, announced the results of its 2024 Annual Meeting of Stockholders, held on Monday. Shareholders voted on several key proposals, including the election of directors and executive compensation.
The meeting saw the election of three directors to the company's Board of Directors, who will serve until the 2027 annual meeting or until their successors are elected. Thomas G. Campbell, Steven L. Elfman, and Asha Keddy were elected with 2,279,521, 2,350,259, and 3,278,613 votes for, respectively.
Additionally, the compensation of the company's named executive officers was approved on a non-binding advisory basis, with 2,038,235 votes in favor. This advisory vote is a routine procedure that allows shareholders to express their opinion on the executives' pay as disclosed in the Proxy Statement.
The appointment of SingerLewak LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified with a significant majority of 4,937,927 votes for the proposal.
Moreover, the stockholders approved the Smith Micro Software, Inc. Amended and Restated Omnibus Equity Incentive Plan, with 1,900,208 votes for the plan. This plan is designed to provide incentives to eligible employees, directors, and consultants by offering stock-based compensation opportunities.
In other recent news, Smith Micro Software has seen a flurry of activity. The company reported a significant decrease in revenue for Q1 2024, with a total of $5.8 million, a 47% decrease from the previous year. Despite a GAAP net loss of $31 million, Smith Micro has plans to reduce costs and return to profitability by the fourth quarter of 2024.
In terms of analyst updates, Roth/MKM lowered its price target for Smith Micro from $24 to $12, citing challenges due to carrier integration processes, particularly with AT&T and T-Mobile. Despite this, the firm maintains a Buy rating, anticipating growth due to the stabilization of relationships with these carriers. Similarly, Benchmark also reduced its price target for Smith Micro from $20 to $8 while maintaining a Buy rating, following the company's earnings release and guidance.
Smith Micro has also raised approximately $4.1 million through a private placement of shares and warrants. This move is expected to enhance the company's financial flexibility, which is seen as a positive step by analysts. The company also announced partnerships with DISH and a Tier 1 carrier in Europe for the launch of SafePath Global, a family safety solution. These are the recent developments for Smith Micro Software.
InvestingPro Insights
As Smith Micro Software, Inc. (NASDAQ:SMSI) navigates through its strategic plans, the financial landscape presents a mixed picture according to InvestingPro data. With a market capitalization of approximately $24 million, the company is currently trading at a low Price / Book multiple of 0.53, suggesting potential undervaluation relative to its book value. Furthermore, its liquid assets surpass short-term obligations, which could be indicative of financial stability in the near term.
However, the company faces challenges as reflected by a significant decline in revenue growth, recording a -23.5% change over the last twelve months as of Q1 2024. This is coupled with analysts' expectations of a sales decline in the current year and a consensus that the company may not achieve profitability within the same timeframe. For investors considering the long-term potential of SMSI, it's worth noting that the stock has experienced a substantial price drop of -75.96% over the past year, emphasizing the importance of cautious evaluation.
For those looking to delve deeper into Smith Micro Software's financial health, InvestingPro provides additional insights and metrics. There are several other InvestingPro Tips available for SMSI, including an analysis of the company's cash position and debt levels, which can be crucial for understanding its operational efficiency and risk profile. Readers can unlock these insights and more by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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