Smith Micro Sells Off, But The Prospects Remain

  • The short-term headwind was not unexpected, even if the retrenchment in CommSuite is going faster than expected.
  • What was also known is the $13.6M payment to Avast for retaining AT&T as a customer, but this is a one-off and well worth it.
  • However, the important news is that T-Mobile will launch in a few weeks and will migrate subscribers of legacy apps onto SafePath 7.0, with other carriers to follow this year.
  • While Q1 and perhaps Q2 will still not be all that pretty, H2 should show the start of a multi-year ramp that is liable to dramatically improve the company’s finances.
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