After shares of Smith Micro Software (SMSI) fell almost 40% an investigation on behalf of investors in Smith Micro Software, Inc. (NASDAQ:SMSI) shares over possible violations of Federal Securities Laws by Smith Micro Software, Inc. was announced.

The investigation by a law firm concerns whether Aliso Viejo, California-based Smith Micro Sorftware, Inc (Nasdaq: SMSI) violated Federal Securities Laws by issuing false and misleading statements.

Smith Micro Softwares 12months Total Revenue went from $54.47million in 2006 to $107.28million in 2009. But its Net Income went from $8.96million in 2006 to a Net Loss of $.073million in 2008 and a Net Income of $4.75million in 2009.
For the first three quarters in 2010 Smith Micro Software, Inc. a combined nine months Total Revenue of $96.23million with a combined nine months Net Income of $6.57million.

Shares of Smith Micro Software, Inc. traded in 2006 as low as $7.20 and increased to $16.95 in November 06. During 2007 SMSI shares reached $19.14 per share but fell to as low as $4.26 in November 08. During 2009 SMSI shares fell in March to under $4 per share but then regainded value and traded in September 09 at $12.76 per share. During 2010 traded at roughly $10 before increasing to almost $16 in December 2010 and surpassing $16 in January 2011.
On January 11 Smith Micro Software, Inc. provided its 2011 Revenue Guidance.
Smith Micro Software, Inc. (NASDAQ: SMSI) said based on its current financial and customer data and managements current plans and assumptions, Smith Micro Software expected fiscal 2011 full-year revenues to be in the range of $150 million to $160 million.
In addition, Smith Micro Software expected to report full-year 2010 revenues in-line with its previously announced guidance of approximately $130 million, based on preliminary estimates of fourth quarter 2010 revenues of $35 million (unaudited). Fourth quarter 2010 revenues are subject to change as a result of final management review and closing adjustments prior to filing Smith Micro Software Form 10-K for fiscal 2010.

SMSI shares began decreasing from $16.85 on January 6th to $12.28 on January 25th.
Then on February 8, 2011 Smith Micro Software, Inc. (NASDAQ: SMSI) announced that it has suspended its full-year 2011 revenue guidance. Subsequent to providing 2011 revenue guidance on January 11, 2011, Smith Micro Software, Inc said it has become aware that orders in the first quarter for its core connection manager product, primarily from a key customer, will fall below expected levels. Smith Micro Software, Inc said it now expects first quarter 2011 revenues to be in the range of $15-20 million.
Shares of Smith Micro Software, Inc. (NASDAQ: SMSI) fell from $13.08 per share on Feb 8th to as low as $7.99 during Feb 9th, a decline of almost 40%.