<PAGE> 1
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
Filed by the Registrant /X/
Filed by a Party other than the Registrant / /
Check the appropriate box:
<TABLE>
<S> <C>
/ / Preliminary Proxy Statement / / Confidential, for Use of the Commission
/ / Definitive Proxy Statement Only (as permitted by Rule 14a-6(e)(2))
/X/ Definitive Additional Materials
/ / Soliciting Material Pursuant to sec. 240.14a-11(c) or sec. 240.14a-12
</TABLE>
SMITH MICRO SOFTWARE, INC.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
SMITH MICRO SOFTWARE, INC.
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/ / $125 per Exchange Act Rules 0-11(c)(1)(ii), or 14a-6(i)(1), or 14a-6(i)(2)
or Item 22(a)(2) of Schedule 14A.
/ / $500 per each party to the controversy pursuant to Exchange Act Rule
14a-6(i)(3).
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
(1) Title of each class of securities to which transaction applies:
----------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies:
----------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
filing fee is calculated and state how it was determined):
----------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
----------------------------------------------------------------------
(5) Total fee paid:
----------------------------------------------------------------------
/ / Fee paid previously with preliminary materials.
/X/ Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
$125
----------------------------------------------------------------------
(2) Form, Schedule or Registration Statement No.:
Schedule 14A
----------------------------------------------------------------------
(3) Filing Party:
SMITH MICRO SOFTWARE, INC.
----------------------------------------------------------------------
(4) Date Filed:
May 10, 1996
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<PAGE> 2
SMITH MICRO SOFTWARE, INC.
NASDAQ NMS: SMSI
1996 INVESTMENT PROFILE
[COLLAGE]
A LEADING PROVIDER OF COMMUNICATIONS SOFTWARE FOR FAX, DATA AND VOICE
COMMUNICATIONS - AND LAUNCHING IN 1996, PC DESKTOP VIDEOCONFERENCING SOFTWARE.
<PAGE> 3
- --------------------------------------------------------------------------------
REPRESENTATIVE )
OEM CUSTOMERS ) SMSI SELLS ITS COMMUNICATION SOFTWARE
) PRODUCTS WORLDWIDE, PRIMARILY TO OEM
AT&T ) CUSTOMERS THAT BUNDLE THE COMPANY'S SOFTWARE
BANKSIA (AUSTRALIA) ) WITH THEIR HARDWARE PRODUCTS. WITH SOFTWARE
BOCA RESEARCH ) AVAILABLE IN JAPANESE, FRENCH AND GERMAN AS
GVC (TAIWAN) ) WELL AS IN ENGLISH, APPROXIMATELY 16.6% OF
HAYES/PRACTICAL PERIPHERALS ) THE COMPANY'S OEM-BASED REVENUES FOR 1995
IBM ) WERE DERIVED FROM THE SALE OF FOREIGN
LOGICODE ) LANGUAGE VERSIONS.
MOTOROLA )
U.S. ROBOTICS )
- --------------------------------------------------------------------------------
First came computers -- PCs that empowered individuals and businesses to perform
complex tasks quickly. Then networking was developed to connect PCs with
peripherals and other PCs for local area communications. But the demand by
computer users for communications soon extended well beyond the local office,
and connectivity began on a broad and global scale among individuals and
businesses.
What started as data transmission moved on to facsimile transmission (fax)
and voice communication and now has led to access to online services and the
burgeoning internet.
Communication has become as central to the PC as computing itself.
Smith Micro, founded in 1982 at the beginning of the PC revolution, was an
early enabler of connectivity in the late 1980s with its fax software for PCs
and has grown to become a technology and market leader since that time.
The company provides PC software for fax, data and voice communications
linking all major computer platforms and operating software (DOS, Windows,
Windows 95, Macintosh and OS/2) in multiple languages. A key feature of its
software products is its integration and ease of use. Computer users have the
ability to switch seamlessly among data, fax and voice functions without
interruption.
Broadened functionality provided by recent products includes cellular and
wireless applications, computer telephony (voicemail and speakerphone
functions), remote access and modem sharing.
Smith Micro's software is sold principally to hardware OEMs for bundling
with their modem products and for preloading on computers. OEM customers include
many of the major modem manufacturers worldwide: AT&T, Banksia (Australia), Boca
Research, GVC (Taiwan), Hayes/Practical Peripherals, IBM, Logicode, Motorola,
and U.S. Robotics.
Increasingly, Smith Micro's software also is available directly to
consumers through retail sales channels. Distributors include Ingram Micro and
Tech Data, while retail outlets include Computer City, CompUSA, Micro Center,
Elek Tek and Egghead, among others.
The company maintains close, interactive product development relationships
with its modem-manufacturer customers, as well as modem chip manufacturers,
such as Rockwell, Sierra Semiconductor, Cirrus Logic, Lucent (formerly AT&T
Microelectronics) and IBM, to ensure that its software supports the latest modem
<PAGE> 4
[CAPTION]
ENABLING CONNECTIVITY AMONG INDIVIDUALS AND BUSINESSES WORLDWIDE.
[HOTFAX MENU SOFTWARE GRAPHIC]
HOTFAX(R) MENU
UNIVERSAL PRINTING ASSISTANT THAT ADDS THE COMMAND "FAX" UNDER THE FILE MENU IN
WINDOWS APPLICATIONS
[HOTDISK SOFTWARE GRAPHIC]
HOTDISK(R)
ALLOWS A REMOTE USER ACCESS, VIA A STANDARD DIAL-UP MODEM, TO A HOST COMPUTER'S
DISK DRIVE(S), WITHOUT INTERRUPTING THE USER AT THE HOST LOCATION, TO EXECUTE
PROGRAMS AND FOR SEAMLESS FILE TRANSFER.
[COLLAGE]
[HOTFAX DATA AND FAX SOFTWARE GRAPHIC]
HOTFAX(R)
DATA AND FAX SOFTWARE FOR WINDOWS 3.X, WINDOWS 95 AND WINDOWS NT. PROVIDES
CUSTOM COVER PAGES, REMOTE RETRIEVAL OF RECEIVED FAXES, WIRELESS, AUTOMATIC
PAGER NOTIFICATION AND OCR, AMONG OTHER FEATURES.
[HOTPAGE SOFTWARE GRAPHIC]
HOTPAGE(R)
SOFTWARE DEVELOPED FOR WINDOWS 95 USERS WHO HAVE ALPHANUMERIC PAGERS. PROVIDES
AUTOMATIC NOTIFICATION OF E-MAIL MESSAGES AND ALLOWS USERS TO SEND MESSAGES
DIRECTLY FROM THEIR PCS, AMONG OTHER FEATURES.
<PAGE> 5
technologies. Its experience in providing products to the OEM market, where
easy-to-use software is required to enable a new modem to be put into service
quickly and relatively easily, is a significant competitive advantage.
Next-generation software at Smith Micro is being developed to expand
functionality for new applications that utilize the increased bandwidth of ISDN
and other emerging communications transmission technologies.
In early 1996, Smith Micro acquired Performance Computing Inc. (PCI), an
audio/video software solutions provider. PCI's technology will provide the
platform for low-cost, innovative PC desktop videoconferencing software products
used over Plain Old Telephone Service (POTS) lines and ISDN lines, targeted at
SOHO (small office/home office), consumer and corporate markets. The company
intends to integrate videoconferencing into its fax, data and voice products
using a single graphical user interface (GUI).
The new PC desktop videoconferencing software products will launch
through OEM (as VideoLink(TM)) and retail channels (as AudioVision(TM)) during
1996 to address what industry experts say is emerging as a major market.
In the near term, Smith Micro believes that fax and data communications
for online and internet access will continue to drive modem sales, but PC
desktop videoconferencing will become in the late 1990s what fax was to the
modem business in the early 1990s -- a major driver of communications software
sales.
From a single product company in 1982 providing data communications
software, Smith Micro has progressed in 1996 to a broad communications software
enterprise with multiple product lines in fax/data/voice/video, state-of-the-art
engineering and technology, important customer and strategic alliances,
worldwide sales and marketing outreach, sound financial resources, and seasoned
professional management.
<TABLE>
<CAPTION>
NET REVENUES GROSS PROFIT OPERATING INCOME*
$ thousands $ thousands $ thousands
<S> <C> <C> <C>
1993 6,443 4,810 336
1994 10,372 7,244 2,603
1995 18,012 12,125 5,954
</TABLE>
* Operating income reflects the payment of compensation to the Company's
stockholders, including $2.0 million for 1993, $0.8 million for 1994, and
$3.8 million for 1995, through the Company's IPO date of September 19th, to
satisfy S corporation tax liabilities.
<PAGE> 6
SMITH MICRO SOFTWARE PRODUCTS
<TABLE>
<CAPTION>
PRODUCT NAME FUNCTIONALITY
- --------------------------------------------------------------------------------------------------------------------------------
DISK
OUTBOUND INBOUND ACCESS VIDEO
MODEM REMOTE (REMOTE TELEPHONE TELE-
DATA FAX VOICE (LAN) CONTROL & DIR.) TELEPHONY DIALER CONFERENCING PAGING WIRELESS
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
OEM PRODUCTS
- --------------------------------------------------------------------------------------------------------------------------------
QUICKLINK 3.0 X X X
- --------------------------------------------------------------------------------------------------------------------------------
QUICKLINK MESSAGECENTER 3.0 X X X X X
- --------------------------------------------------------------------------------------------------------------------------------
QUICKLINK II FAX WIN/DOS X X
- --------------------------------------------------------------------------------------------------------------------------------
QUICKLINK FAX MESSAGE CENTER
FOR WINDOWS X X X
- --------------------------------------------------------------------------------------------------------------------------------
QUICKLINK II FAX FOR WINDOWS X X
- --------------------------------------------------------------------------------------------------------------------------------
QUICKLINK MOBILE X X X
- --------------------------------------------------------------------------------------------------------------------------------
MACCOMCENTER X X
================================================================================================================================
QUICKLINK MESSAGE
IN CENTER FOR OS/2 X X X X
DEVELOPMENT -------------------------------------------------------------------------------------------------------------------
MACCOMCENTER WITH
VOICE X X X
-------------------------------------------------------------------------------------------------------------------
VIDEOLINK X
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL PRODUCTS
- --------------------------------------------------------------------------------------------------------------------------------
HOTFAX FOR WINDOWS X X X X
- --------------------------------------------------------------------------------------------------------------------------------
HOTFAX DOS X X
- --------------------------------------------------------------------------------------------------------------------------------
HOTFAX MENU X
- --------------------------------------------------------------------------------------------------------------------------------
HOTPAGE X
- --------------------------------------------------------------------------------------------------------------------------------
HOTDISK X
- --------------------------------------------------------------------------------------------------------------------------------
HOTLINE FOR WINDOWS X
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HOTLINE FOR DOS X
- --------------------------------------------------------------------------------------------------------------------------------
CROSSCONNECT X X
- --------------------------------------------------------------------------------------------------------------------------------
DATABASE PRODUCTS:
- --------------------------------------------------------------------------------------------------------------------------------
FAX USA
- --------------------------------------------------------------------------------------------------------------------------------
NATIONAL DIRECTORY
================================================================================================================================
HOTFAX MESSAGE
IN CENTER FOR WINDOWS X X X X X
DEVELOPMENT -------------------------------------------------------------------------------------------------------------------
AUDIOVISION X
-------------------------------------------------------------------------------------------------------------------
MACCOMCENTER PLUS
WITH VOICE X X X
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
PRODUCT NAME PLATFORM LANGUAGES
- --------------------------------------------------------------------------------------------------------------------------
WINDOWS 95/ MAC ENGLISH
WINDOWS DOS WINDOWS NT OS/2 ENGLISH (UK) FRENCH GERMAN JAPANESE SPANISH
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
OEM PRODUCTS
- --------------------------------------------------------------------------------------------------------------------------
QUICKLINK 3.0 X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
QUICKLINK MESSAGECENTER 3.0 X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
QUICKLINK II FAX WIN/DOS X X X
- --------------------------------------------------------------------------------------------------------------------------
QUICKLINK FAX MESSAGE CENTER
FOR WINDOWS X X X X X
- --------------------------------------------------------------------------------------------------------------------------
QUICKLINK II FAX FOR WINDOWS X X X X X
- --------------------------------------------------------------------------------------------------------------------------
QUICKLINK MOBILE X X
- --------------------------------------------------------------------------------------------------------------------------
MACCOMCENTER X X X
==========================================================================================================================
QUICKLINK MESSAGE
IN CENTER FOR OS/2 X X X X X X
DEVELOPMENT -------------------------------------------------------------------------------------------------------------
MACCOMCENTER WITH
VOICE X X X
-------------------------------------------------------------------------------------------------------------
VIDEOLINK X X X
- --------------------------------------------------------------------------------------------------------------------------
RETAIL PRODUCTS
- --------------------------------------------------------------------------------------------------------------------------
HOTFAX FOR WINDOWS X X X
- --------------------------------------------------------------------------------------------------------------------------
HOTFAX DOS X X
- --------------------------------------------------------------------------------------------------------------------------
HOTFAX MENU X X X
- --------------------------------------------------------------------------------------------------------------------------
HOTPAGE X X
- --------------------------------------------------------------------------------------------------------------------------
HOTDISK X X X
- --------------------------------------------------------------------------------------------------------------------------
HOTLINE FOR WINDOWS X X
- --------------------------------------------------------------------------------------------------------------------------
HOTLINE FOR DOS X X
- --------------------------------------------------------------------------------------------------------------------------
CROSSCONNECT X X X
- --------------------------------------------------------------------------------------------------------------------------
DATABASE PRODUCTS:
- --------------------------------------------------------------------------------------------------------------------------
FAX USA X X X X
- --------------------------------------------------------------------------------------------------------------------------
NATIONAL DIRECTORY X X X X
==========================================================================================================================
HOTFAX MESSAGE
IN CENTER FOR WINDOWS X X X
DEVELOPMENT -------------------------------------------------------------------------------------------------------------
AUDIOVISION X X X
-------------------------------------------------------------------------------------------------------------
MACCOMCENTER PLUS
WITH VOICE X X X
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
PRODUCT NAME OEM CUSTOMERS/(STATUS)
- ------------------------------------------------------------------------------------------------------------------------
BOCA PRACTICAL U.S.
AT&T BANKSIA RESEARCH GVC HAYES IBM MOTOROLA PERIPHERALS ROBOTICS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
OEM PRODUCTS
- ------------------------------------------------------------------------------------------------------------------------
QUICKLINK 3.0
- ------------------------------------------------------------------------------------------------------------------------
QUICKLINK MESSAGECENTER 3.0
- ------------------------------------------------------------------------------------------------------------------------
QUICKLINK II FAX WIN/DOS X X X X X
- ------------------------------------------------------------------------------------------------------------------------
QUICKLINK FAX MESSAGE CENTER
FOR WINDOWS X X
- ------------------------------------------------------------------------------------------------------------------------
QUICKLINK II FAX FOR WINDOWS X X X X X
- ------------------------------------------------------------------------------------------------------------------------
QUICKLINK MOBILE X X X
- ------------------------------------------------------------------------------------------------------------------------
MACCOMCENTER X X X X
========================================================================================================================
QUICKLINK MESSAGE
IN CENTER FOR OS/2 (PROTOTYPE AVAILABLE IN ENGLISH)
DEVELOPMENT -----------------------------------------------------------------------------------------------------------
MACCOMCENTER WITH
VOICE (PROTOTYPE AVAILABLE IN ENGLISH)
-----------------------------------------------------------------------------------------------------------
VIDEOLINK (PROTOTYPE AVAILABLE IN ENGLISH)
- ------------------------------------------------------------------------------------------------------------------------
RETAIL PRODUCTS
- ------------------------------------------------------------------------------------------------------------------------
HOTFAX FOR WINDOWS
- ------------------------------------------------------------------------------------------------------------------------
HOTFAX DOS
- ------------------------------------------------------------------------------------------------------------------------
HOTFAX MENU
- ------------------------------------------------------------------------------------------------------------------------
HOTPAGE
- ------------------------------------------------------------------------------------------------------------------------
HOTDISK
- ------------------------------------------------------------------------------------------------------------------------
HOTLINE FOR WINDOWS
- ------------------------------------------------------------------------------------------------------------------------
HOTLINE FOR DOS
- ------------------------------------------------------------------------------------------------------------------------
CROSSCONNECT
- ------------------------------------------------------------------------------------------------------------------------
DATABASE PRODUCTS:
- ------------------------------------------------------------------------------------------------------------------------
FAX USA
- ------------------------------------------------------------------------------------------------------------------------
NATIONAL DIRECTORY
========================================================================================================================
HOTFAX MESSAGE
IN CENTER FOR WINDOWS
DEVELOPMENT -----------------------------------------------------------------------------------------------------------
AUDIOVISION
-----------------------------------------------------------------------------------------------------------
MACCOMCENTER PLUS
WITH VOICE (PROTOTYPE AVAILABLE IN ENGLISH)
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 7
INVESTMENT OPPORTUNITY
Smith Micro Software, Inc. became publicly owned through an initial public
offering effective September 19, 1995. The common stock of the company is
traded on the NASDAQ National Market under the symbol SMSI. At February 29,
1996, there were 13.7 million shares of common stock outstanding, of which 9.8
million shares were held by the company's founders.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS*
($ in 000s, except share data)
- -----------------------------------------------------------------
YEAR ENDED DECEMBER 31, 1993 1994 1995
- -----------------------------------------------------------------
<S> <C> <C> <C>
STATEMENT OF INCOME DATA
Net revenues $6,443 $10,372 $18,012
Gross profit 4,810 7,244 12,125
Operating income 336 2,603 5,954
Income before income tax expense 300 2,616 6,262
Income tax expense 16 49 810
Net income 284 2,567 5,452
Pro forma net income 3,757
per share 0.30
Shares used in computation 12,627
- -----------------------------------------------------------------
AS OF DECEMBER 31, 1993 1994 1995
- -----------------------------------------------------------------
BALANCE SHEET DATA
Cash and cash equivalents $ 55 $ 632 $19,020
Total assets 2,243 3,240 23,662
Total current liabilities 445 608 3,417
Total stockholders' equity 1,798 2,632 20,245
- -----------------------------------------------------------------
</TABLE>
* FROM 11/1/92 THROUGH 9/21/95, THE COMPANY ELECTED TO BE TAXED AS AN S
CORPORATION FOR FEDERAL INCOME TAX PURPOSES AND GENERALLY DID NOT HAVE AN
INCOME TAX LIABILITY. OPERATING INCOME AND NET INCOME REFLECT THE PAYMENT OF
COMPENSATION TO THE COMPANY'S STOCKHOLDERS, INCLUDING $2.0 MILLION FOR 1993,
$0.8 MILLION FOR 1994, AND $3.8 MILLION FOR 1995, TO SATISFY S CORPORATION
TAX LIABILITIES. PRO FORMA NET INCOME AND NET INCOME PER SHARE HAVE BEEN
DETERMINED AS IF THE COMPANY HAS BEEN TAXED AS A C CORPORATION ASSUMING
EFFECTIVE TAX RATES FOR THE PERIODS INDICATED.
INVESTORS CONTACTS
Robert E. Grice, Jr.
Vice President-Finance & Chief Financial Officer
Bruce T. Quigley
Director of Investor Relations and Corporate Communications
Smith Micro Software
51 Columbia
Aliso Viejo, CA 92656
(714) 362-5800 FAX (714) 362-2300
e-mail: [email protected]
View Smith Micro's corporate and investor communications on the internet at:
HTTP://WWW.SMITHMICRO.COM
[SMITHMICRO SOFTWARE LOGO]
(R) 1996 Smith Micro Software, Inc.
