An investigation on behalf of current long term stockholders of shares of Smith Micro Software, Inc. (NASDAQ:SMSI) over possible breaches of fiduciary duties by certain officers and directors of Smith Micro Software was announced.

The investigation on behalf of current long term SMSI investors follows a lawsuit filed on behalf of investors who purchased their SMSI shares only between November 3, 2010 and May 4, 2011. According to that lawsuit filed in the United States District Court for the Central District of California the plaintiff alleges that Smith Micro Sorftware, Inc (Nasdaq: SMSI) violated Federal Securities Laws by issuing false and misleading statements regarding its business prospects and financial results.

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.

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 regained 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%.

Then on May 4, 2011, Smith Micro Software announced its quarterly financial results for the first quarter in 2011. For the first quarter in 2011 Smith Micro Software reported a decrease in its quarterly Revenue and Net Income compared to one year earlier. Smith Micro Softwares first quarter Revenue decreased from $29.86million for the first quarter in 2010 to $17.79million for the first quarter in 2011. Its quarterly Net Income fell from $1.59million for the first quarter in 2010 to a Net Loss of $7.75million for the first quarter in 2011.Smith Micro Software announced also its second quarter 2011 revenue guidance, which is below analysts estimates.

SMSI stock fell from $7.68 in the beginning of May to slightly above $4 per share in June 2011 and traded recently at $3.78 per share.