Smith Micro Announces Strategic Cost Reductions and Leadership Changes
Company Expects Annualized Cost Savings of $7.2 Million
Smith Micro Software, Inc. (NASDAQ:SMSI) today announced that it has implemented strategic organizational changes aimed at enhancing operational efficiencies and reducing costs in line with the Company's priorities and vision for the future. These reorganization efforts, which include a strategic reduction of the Company's workforce, are part of a broader initiative to realign the Company's cost structure with long-term business goals, strengthen its financial foundation, and accelerate the Company's path to profitability.
"We recognize the impact this decision has on our employees and their families, and we appreciate their contributions and long-standing service and dedication to the Company," said William W. Smith Jr., president chief executive officer and chairman of the board of Smith Micro. "While difficult, this strategic realignment of resources is a meaningful step forward and is necessary for the Company's success. We remain focused on delivering value to our customers and stakeholders and will continue to invest in strategic areas that support innovation and long-term success."
This decision follows a comprehensive review of the Company's operating structure and future needs, based in part on the completion of certain development efforts, in view of the Company's key priorities and long-term strategy. Approximately 30% of the workforce will be impacted across the Company. The reorganization will result in cost savings of $1.8 million per quarter as compared to the second quarter of 2025, or $7.2 million reduction in costs for 2026, excluding payment of employee separation costs. The reduction is intended to streamline operations, improve efficiency, and position the Company for profitability. Additionally, the Company's board of directors has voluntarily waived their fourth quarter cash board retainer fees, which will provide cash savings of approximately $45,000, and in lieu, the Company has granted them fully vested restricted stock awards of comparable value. Beyond the reorganization, the Company is building a culture of continuous improvement and operational efficiency and expects to reduce additional non-employee-related expenses to further strengthen its financial performance while delivering exceptional value to its customers and stakeholders.
As part of its reorganization the Company is announcing several leadership changes.
- David Blakeney, senior vice president of engineering, retired after 14 years of service on September 23, 2025.
- David Sperling, chief technology officer and vice president of engineering, has been promoted to chief technology officer and senior vice president of engineering, and will now additionally be responsible for all development activities.
- Anup Kaneri, vice president of worldwide products, was promoted to chief product officer and is responsible for all product strategies.
Mr. Smith added, "We extend our heartfelt gratitude to David Blakeney for his exceptional service and commitment. His leadership has been instrumental in achieving significant development milestones. As we move forward, we are enthusiastic about the future and confident that our team is well-positioned to ensure continued smooth operations and success."
About Smith Micro Software, Inc.
Smith Micro develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers around the world. From enabling Digital Family Lifestyle™ solutions to providing powerful voice messaging capabilities, Smith Micro's solutions enrich today's connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer IoT devices. For more information, visit www.smithmicro.com.
Smith Micro, the Smith Micro logo, and Digital Family Lifestyle are registered trademarks or trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective owners.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements regarding future events or results within the meaning of the Private Securities Litigation Reform Act, including statements related to the anticipated timing and amount of cost savings resulting from the announced changes and the Company's expectations related to its future performance and profitability, and statements using such words as "expect," "anticipate," "believe," "plan," "intend," "could," "will" and other similar expressions. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Among the important factors that could cause or contribute to such differences are delays in our ability to fully execute on our expense reduction plans due to statutory and other requirements, unanticipated delays or obstacles in our development and release cycles, the degree to which competing business needs or resource availability may affect our allocation of resources to planned projects and other business needs, the risk of unanticipated attrition or harm to our business resulting from our cost reduction efforts, the degree to which our customers adopt, offer and promote our products and services and our planned upgrades, updates and enhancements thereto or the degree to which their end users adopt our products and services and our planned upgrades, updates and enhancements thereto in the time period that we expect or at all, our reliance on third party application stores for the distribution of our software applications and any barriers to such distribution, including any delay or failure of such third party to approve new versions of our applications or their implementation and/or application of policies that may be harmful to our business, our ability to attract and retain key technical personnel that are essential to our product development efforts, changes in demand for our products from our customers or their end users, changes in requirements for our products imposed by our customers or by the third party providers of software and/or platforms that we use, new and changing technologies and customer acceptance and timing of deployment of those technologies, and our ability to compete effectively with other software and technology companies. These and other factors discussed in our filings with the Securities and Exchange Commission, including our filings on Forms 10-K and 10-Q, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. The forward-looking statements contained in this release are made on the basis of the views and assumptions of management, and we do not undertake any obligation to update these statements to reflect events or circumstances occurring after the date of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251015011036/en/
PR/IR INQUIRIES:
Charles Messman
Smith Micro Software
+1 (949) 362-5800
[email protected]