NEW YORK (TheStreet) -- Smith Micro Software (SMSI) plummeted to a one-year low of 66 cents on Friday after the tech company reported first-quarter results that came up short of analysts' expectations.
The company reported a loss of 14 cents a share, which was worse than analysts' consensus estimate of a loss of 5 cents a share. Revenue totaled $8.45 million, which was well short of the consensus estimate of $9.79 million.
"While we typically see a drop in revenue from the fourth quarter to the first quarter each year due to seasonality in our productivity and graphics business, this year's decline was more strongly felt since, as expected, the 19% customer in Q4 did not contribute any revenue to Q1," said CEO William Smith in a statement. "While we were hopeful that we could achieve profitability based on our previous restructure, a significant potential deal that didn't materialize and uncertainty regarding the timing of future revenues have resulted in the need for additional cost cutting measures. Therefore, we are taking immediate steps to further lower our cost structure by approximately $2 million per quarter."
The stock was down 45.64% to 81 cents at 2:45 p.m.
Separately, TheStreet Ratings team rates SMITH MICRO SOFTWARE INC as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SMITH MICRO SOFTWARE INC (SMSI) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow."