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Smith Micro Software Inc. Q1 2008 Earnings Call Transcript

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2008-05-27 15:54:16.0

Tags: Smith Micro Software Inc.

Question-and-Answer Session

Operator

Thank you, sir. Ladies and gentlemen, at this time, we will begin the question-and-answer session. (Operator Instructions)

And our first question comes from the line of Lauren Ye with JPMorgan. Please go ahead.

Lauren Ye- JPMorgan

Hi, guys, how are you?

Bill Smith

Doing great.

Lauren Ye- JPMorgan

Yeah. Can I just ask again around Verizon, can you go into detail a little more about I guess what you're going to help Real Networks do on Rhapsody, and are you providing the actual multimedia player for that product, or is it a separate multimedia player?

Bill Smith

I really have to sort of stick to the script on that. I have a customer, probably two customers to pay attention to in answering this. So why don't we just leave it that we expect to have a play in the overall music offerings of Verizon going forward, as well as we expect to be a provider of other multimedia technologies for Verizon as well. And really have to leave it at that.

Lauren Ye- JPMorgan

Okay. And then just multimedia from Sprint's side, you mentioned that you're going to help them with their new phone. Is the price point on this multimedia going to be higher than I guess the music manager that you're helping them with right now?

Bill Smith

Okay. We're pretty excited about what we think the Instinct phone might mean to Sprint. I think it's a great device. We were very pleased to have such an important role in the development of the software for it, and I think we'll have to leave it at that. As far as pricing, we don't really talk about that. Obviously, we are in business to make money, and we expect that if Sprint and Samsung are very successful with this device, which I think they will be, having seen it and played with it, that take-away is we should make money, too.

Lauren Ye- JPMorgan

Okay. Fair enough. And then just last question is around PCTEL. Are you guys going to break out what you did with PCTEL this quarter?

Bill Smith

No, we won't. First off, PCTEL is another company, and MSG doesn't exist anymore. It's all part of our connectivity and security group. And Andy and I broke out what the performance of that group was, so we'll leave it at that.

Lauren Ye- JPMorgan

Okay. And just around that again, so as you explore, I guess, international opportunities, you have current relationships with the current old PCTEL customers, but are you seeing additional traction? Maybe these customers have been reference points for you to kind of go after other customers? And what are some of the roadblocks, I guess, that may be in place internationally that might be different from U.S. customers or such?

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