http://biz.yahoo.com/e/111020/smsi8-k.html

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Form 8-K for SMITH MICRO SOFTWARE INC

20-Oct-2011

“Costs Associated with Exit or Disposal Activities”

“On October 18, 2011, the Board of Directors of Smith Micro Software, Inc. (the "Company") approved a plan of restructuring intended to bring the Company's operating expenses better in line with revenues.

The restructuring plan involves a realignment of organizational structures, facility consolidations/closures and headcount reductions that will amount to approximately 20% of the Company's worldwide workforce. The restructuring plan is expected to be implemented primarily during the fourth quarter of the Company's 2011 fiscal year.”

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Smith Micro's stock dropped almost 10% today, to $1.14.    The stock is “delisted” from the exchange when it falls below $1.00

Seems the home team’s gettin’ lean & mean.

if delisted, shares not tradeable; investors will be stuck.

Yikes.  20% is a big cut. 

I don't think the recession is over.  The market's getting crazy, in the 2008 kind of way. :sad:

If the price falls below $1.00, it would be suspended from trading on NASDAQ. 

Like other small corporations, shares would still be traded "Over-The-Counter"and through the "Pink-Sheets".

(don't personally own any, just watching)

This is not the lowest SMSI's stock has been, and, as almost all smaller (i.e. not apple, google, or microsoft) stocks go, theirs is acting relatively normal.  

The stock market normally doesn't work based on what a company does in it's day-to-day business (including layoffs).  

its all a matter of perspective

they are still doing better than netflix

Cheers

Quote - its all a matter of perspective

they are still doing better than netflix

 

 

 

Cheers

ROFLMAO...friend of my is a netflix fan boy and stock holder. Once in a while I have to remind him about his Krispy Kreme stock too.  Of course don't ask me about my BofA stock. But you can ask all you want about my 1984-86 load up of Apple stock any day of the week however...:) Sometimes dumb luck works to your advantage!

Quote - its all a matter of perspective

they are still doing better than netflix

 

 

 

Cheers

I read how it's going for Netfix...lol. Dismal ;)

Laurie

"But you can ask all you want about my 1984-86 load up of Apple stock any day of the week however...:)"

Did some work for Apple about that time (I think it was about $23.00? then) ... looked close, but DIDN"T bite.   DOOH!

(I did get to meet Jobs, & got a nice LISA II out of the deal though!  Still around here somewhere.)

Shares will remain tradable, just not on NASDAQ.  Firms are frequently given time to work their way out of a share price below $1, typically 90 days.  They generally offer more stock, increasing capital, but diluting current shareholders.  Even if delisted from NASDAQ, the stock would still trade either over the counter or via pink sheets.

Yesterday, SMSI was also removed from the Standard and Poors Small Cap 600.  They do not qualify as a small cap company any more.  They were replaced by Kids Brands, purveyor of infant and juvenile products.  Yikes.

Yes, SMSI was far cheaper - in 2002.  The stock has gone from $17 / share to about $1 / share in the course of 2011.  The layoffs are an attempt to match costs to revenues, as the company said in it's filings.

The real problem is the fact that a valuation of goodwill was triggered by the plunging share price (also in their filings).  Since the company carries over $100 million in goodwill on it's books, and has a current market capitalization of $41 million, a write down could be an issue.

Poser is not a factor in this, it's the mobile phone software which drove the company's success and is now generating significantly lower income than anticipated.  Poser is a small asset, likely to be disposed if there is a reorganization.  Who are the potential buyers - that's the interesting question.

Klebnor

"Poser is a small asset, likely to be disposed if there is a reorganization."

Not again! Oh well, my Axis theory is still operative - the Germans, the Japanese, and now all roads lead to Rome. 

Or Utah.  Maybe DAZ will buy Poser. :unsure:

I wouldn't worry simply for the fact that the global economy is in the dumps and people are really holding back on speeding money for thing that they don't need.  When the economy is good people buy what they WANT but when it's bad people buy what they NEED.

If this news came about during good economic times then I would be worried, but it comes during a time when many businesses are sufferring.  Even places like Walmart have taken a hit.

"...when it's bad people buy what they NEED." Is that why so many people are spending 100s of $s on the latest iGadgets, I was wondering about that :-)

Quote - Is that why so many people are spending 100s of $s on the latest iGadgets, I was wondering about that :-)

80+ percent of American workers are still working, so there is money still being spent, but that's small solace for those in the ranks of the  unemployed/underemployed.  One problem is that, because of uncertainty about the Euro and the deficit "supercomittee",  many investors aren't investing, but sitting on Treasury bonds and cash...

(edited because I cant %#*! type!)

the filter forge banners are back.  is that cause SM can't afford to advertise here anymore?

No, it's because filter forge ALSO advertises here.  

"80+ percent of American workers are still working, so there is money still being spent, but that's small solace for those in the ranks of the  unemployed/underemployed.

Yes and of those working only %47 percent have
 FULL TIME  JOBS

Also even the poor/unemployed  still have "disposable income" to waste on mass media  entertainment devices with monthly data plans

There are 44 million on FOOD STAMPS

But the cost of food  in america ,despite recent hikes, is still
the lowest in the world,relative to income,

The average participant in the "Occupy wall street" movement here in New York has two high end web enable devices. (Smart phone, laptop)

And we have people poser users here who are dropping over $70 USD on the genesis based V5 bundle knowing full well it does not even function properly in poser.

so yeah IMHO we clearly have not seen true hard times in america.....yet

Cheers

Quote - > Quote - Is that why so many people are spending 100s of $s on the latest iGadgets, I was wondering about that :-)

80+ percent of American workers are still working, so there is money still being spent, but that's small solace for those in the ranks of the  unemployed/underemployed.  One problem is that, because of uncertainty about the Euro and the deficit "supercomittee",  many investors aren't investing, but sitting on Treasury bonds and cash...

(edited because I cant %#*! type!)

Actually there's a lot of "Credit" still being spent. Especially on iGadgets and toys that people really shouldn't be spending if they actually looked at their budgets with a realistic outlook. Even in this economic climate, people are still trying to live beyond their means which just proves.... "You can't fix Stupid!"

I have a prime example that just moved in across the street. This couple just bought a house based on 1 income earner's wages. Said earner then quit his job without waiting for his partner to actually start their own new job and that partner is facebooking about wanting to buy a Jaguar on his part time income! Stupid Stupid and delusional!

Hm.

That ol' reality ball is not gonna feel good when it shoves his inseam out past his tonsils....... 

I'll bet that none of that 20% will be management jobs!!

They've had pretty significant product releases this quarter in both their networking apps, as well as our toys.    With versions being readied for the shelves, I suspect they had staffed-up during final development & debugging.

Best wishes to those in the 20%.  Hopefully Poser's lower profile will keep our friends off the radar. 

(btw - SMSI leaped-up with the rest of the market today, back to $1.25 )

Some of those with good jobs are now finding themselves helping support relatives who aren't doing so well.

One more thing to take into consideration is just how many of those the percentages use smith micro products.  Even if there's 80% you still have to think of how many are with in the 80% use Poser and buy 3d content for Poser.  How many "everyday people" that you meet in the street would even know about Poser?  1 out of 10? 1 out of 30?

Then if they still have disposible income for entertainment.  Does SmithMicro beat out those other entertainment products and services?

When the economy is bad the competition for money becomes that more fierce.

For example:  If you only have $50 to spend on entertainment items what are you going to spend it on? Movie? DVD? Eating out? Clothing? Food? A few beers? Make it stretch a little longer?  Or Buy a Smith Micro product? 

But if you have $200 to spend on entertainment Smith Micro becomes more likely.