Smith Micro Software (NASDAQ:SMSI) Has Short-Term Risk Says Needham

With revenue weighting expected to come more in the second half of 2011, Needham & Company sees the probability of short term risk for Smith Micro Software (NASDAQ:SMSI).

Needham says, "SMSI is a direct play on the growth of mobile broadband services and smart phones. We expect SMSI to be a significant beneficiary of the nascent rollout of the LTE/4G services by Verizon (NYSE:VZ) and AT&T (NYSE:T) (both N/R), especially as the company’s new Hotspot manager ramps later in 2011. That said, we think the company’s revenue profile is likely to be materially more 2H-weighted than current Street consensus, which could put some near-term pressure on the shares as Street models are adjusted...Taking our typically conservative tact relative to management guidance, our new 2011 estimates are $148MM/$0.86 vs. our prior $147MM/$0.85."

Needham & Company reiterates a "Buy" rating on Smith Micro Software, which closed Wednesday at $15.70, down $0.43, or 2.67 percent. Needham has a price target of $18 on SMSI.