Smith Micro Software unveils new iPhone-competing product
At a Tuesday midday investor presentation, Smith Micro Software Inc.’s (Nasdaq: SMSI) CEO Bill Smith took swipes at rival Apple Inc.’s (Nasdaq: AAPL) cell phone offering, citing security, bandwidth capacity and price as problems. Smith Micro Software’s new cell phone media software, which was revealed today at the C.E. Unterberg investor conference in New York City, competes with Apple’s hot-selling iPhone.
“We always like to come to the Unterberg conference with something a little extra,” Smith said, before announcing the mobile edition of the company’s Quicklink Media software.
Smith Micro’s Quicklink software provides centralized music and media management features, including song play lists, web browsing, media search and downloads and an online store. Verizon Communications Inc. (NYSE: VZ) and Sprint Nextel Corp. (NYSE: S) are branding the software for inclusion with cell phone bundles. The Quicklink software, which runs on Microsoft Smartphones, offers features and a graphical interface that should be comfortable to someone used to using Apple’s popular iTunes software, Smith said. The Aliso Viejo, Calif.-based company also plans to offer the software directly to consumers for a price between $30 and $50.
“I think it’s way cool and it’s a heck of a lot better way to go than the $600 option,” Smith said.
Smith also maligned the iPhone’s security features, which have received negative press. Smith Micro’s software runs on industry standard products that are already accepted by corporations, he said. He also noted that the company’s software works with Microsoft’s popular Outlook program.
“You’re e-mail’s going to be safe,” Smith said. “You don’t have to hide it when you go into the office.”
Another feature, Smith said, is the advantage of the company’s software is the ability to continue using your current cell phone network. For now, iPhone users are required to sign a two-year plan with Cingular.
Over the past month, several financial firms – including Jeffries & Co., UBS and Montgomery Co. - have given Smith Micro positive ratings. But not everyone has been enraptured by the software maker. On Monday evening, CNBC pundit Jim Cramer was bearish on Smith Micro.
“I’d much rather own Verizon than Smith Micro Software,” Cramer said during the “lightning round” segment of his Mad Money TV show. “I think you've got too much hype here. I've got to throw the flag.”
Smith, however, told investors he is unconcerned.
“I don’t worry about competitors,” Smith said. “I worry about great service and great products.
Also during the presentation, Smith told investors:
• The company will release second-quarter results either at the end of July or in early August
• The company currently has 195 employees
• The company’s February acquisition of the Spanish mobile software company Insignia Solutions PLC has brought Smith Micro about 30 new carrier customers
In midday trading, shares of Smith Micro Software were up $0.71, or 4.51%, at $16.45.
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