Smith Micro Stock Soars With Compaq Deal
Smith Micro Software Inc. stock more than doubled Thursday after the company announced that its communications products will be used in Compaq Computer Corp.’s popular Presario family of desktop personal computers.
Smith Micro’s shares shot up 125%, or $2.50 a share, to close at $4.50 in Nasdaq trading that was 69 times higher than the average daily number of shares traded over the last three months.
Under the one-year agreement with Compaq, which begins in May, the Aliso Viejo firm said that its VideoLink Mail 2.0 software will be bundled with Presario models to provide PC users with greater Internet mail capabilities.
VideoLink Mail enables users of Windows 95 and Windows NT to record video and audio messages that can be attached to electronic mail for distribution on the Internet.
“We are very pleased to be working with an acknowledged worldwide leader like Compaq Computer,” William Smith, Smith Micro’s president and 70% owner, said in a prepared statement.
Most of the company’s sales are generated through agreements to bundle its software with PCs or modems.
The company didn’t disclose how much Compaq will pay for Smith’s software or which Presario models the software will be bundled with.
The once high-flying Smith Micro stock has been beaten down as the company struggles to make money. It earned $44,000, or less than 1 cent a share, in its fiscal fourth quarter on revenue of $3.25 million. The company said it was hurt by the lack of an industry standard for 56K modems.
