EXHIBIT 99.1

AT THE COMPANY:
Bruce T. Quigley
Vice President of Business Development
and Investor Relations
949-362-5800
bquigley@smithmicro.com IR INQUIRIES:
Todd Kehrli
MKR Group
818-556-3700
 
todd@mkr-group.com MEDIA INQUIRIES:
Steve Simon
S&S Public Relations
847-955-0700
 
steve@sspr.com

DRAFT — NOT FOR IMMEDIATE RELEASE

Smith Micro Announces Net Revenues of $3.6 Million, an
Increase of 137% over the Third Quarter of 2003; Net Income
of $1.1 Million for Third Quarter 2004

Recent EV-DO, 3G High-Speed Data Service Availability Sparks Growth

Aliso Viejo, Calif., October 20, 2004— Smith Micro Software, Inc. (NASDAQ: SMSI), a developer and marketer of a wide range of software and service solutions for the wireless and Internet markets, today reported its third quarter 2004 results.

The company reported net revenues for the quarter ended September 30, 2004, of $3.6 million, an increase of 137% compared to $1.5 million recorded in the third quarter of 2003. The company’s net income of $1.1 million in the third quarter of 2004 resulted in a net income of $.06 per basic and diluted share, compared to a net loss of $472,000 in the third quarter of 2003 or a net loss of $.03 per basic and diluted share. The company also reported a backlog entering into the fourth quarter of 2004 of $2.0 million, a record for the company.

“We believe that Verizon Wireless’ continued endorsement of its high-speed 3G data network through the addition of 14 more metropolitan service areas is a great boost to our wireless program moving forward,” said William W. Smith, Jr., President and Chief Executive Officer. “We are also excited about the addition of Dobson Communications to our customer base as we look to expand our reach into other wireless service providers,” Mr. Smith concluded.

Investor Conference Call

Smith Micro will hold an investor conference call to discuss the company’s results at 4:30 p.m. Eastern time, Wednesday, October 20, 2004. Investors may access the conference call over the Internet via the company’s website www.smithmicro.com or at http://phx.corporate-ir.net/playerlink.zhtml?c=107760&s=wm&e=955023.

- more -

Smith Micro Third Quarter 2004 Financial Results Page 2 of 5

About Smith Micro Software

Smith Micro Software, Inc., headquartered in Aliso Viejo, CA, is a developer and marketer of wireless communication, broadband, eCommerce and utility software products for multiple OS platforms. The company designs integrated cross platform, easy-to-use software for personal computing and business solutions around the world. With a focus on Wireless and Broadband and Internet technologies, the company’s products and services enable wireless communications, eCommerce, eBusiness, Internet communications (voice-over-IP), video conferencing, network fax, and traditional computer telephony. Smith Micro’s complete line of products is available through original equipment manufacturers (OEMs), direct sales, retail stores, and value-added resellers (VARs). Smith Micro’s common stock trades on The NASDAQ Stock Market® under the symbol SMSI. For more information, contact Smith Micro at (949) 362-5800.

This release may contain forward-looking statements that involve risks and uncertainties, including without limitation risks and uncertainties relating to the company’s financial prospects and projections, the company’s plans for returning to sustained profitability and the company’s ability to increase its business in the Wireless and Broadband segments. These forward-looking statements speak only as of the date hereof and are based upon the information currently available to the company. Such information is subject to change, and the company will not necessarily inform you of such changes. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are new and changing technologies, customer acceptance of those technologies, unforeseen delays in the timing of orders from OEM customers, new and continuing adverse economic conditions, and the company’s ability to compete effectively with other software companies. These and other factors could cause actual results to differ materially from those presented in any forward-looking statement and are discussed in the company’s filings with the Securities and Exchange Commission including its recent filings on Forms 10-K and 10-Q.

Smith Micro and the Smith Micro logo are trademarks or registered trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective companies.

Note: Financial Schedules Attached

Smith Micro Third Quarter 2004 Financial Results Page 3 of 5

Smith Micro Software, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

	Three Months Ended
	September 30
	(unaudited)
	2004		2003
Net Revenues:
Products	$	3,304	$	1,283
Services		252		218
Total Net Revenues		3,556		1,501
Cost of Revenues:
Products		555		298
Services		118		71
Total Cost of Revenues		673		369
Gross Margin		2,883		1,132
Operating Expenses:
Selling & Marketing		375		364
Research & Development		633		622
General & Administrative		790		629
Total Operating Expenses		1,798		1,615
Operating Income (Loss)		1,085		(483	)
Interest Income		14		11
Income (Loss) Before Income Tax		1,099		(472	)
Income Tax Expense		22		—
Net Income (Loss)	$	1,077	$	(472	)
Net Income (Loss) per share, basic	$	0.06	$	(0.03	)
Weighted average shares outstanding, basic		17,254		16,610
Net Income (Loss) per share, fully diluted	$	0.06	$	(0.03	)
Weighted average shares outstanding, fully diluted		18,617		16,610

Smith Micro Third Quarter 2004 Financial Results Page 4 of 5

Smith Micro Software, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

	Nine Months Ended
	September 30
	(unaudited)
	2004		2003
Net Revenues:
Products	$	8,414	$	4,938
Services		747		716
Total Net Revenues		9,161		5,654
Cost of Revenues:
Products		1,802		1,049
Services		293		240
Total Cost of Revenues		2,095		1,289
Gross Margin		7,066		4,365
Operating Expenses:
Selling & Marketing		1,165		1,307
Research & Development		1,922		1,879
General & Administrative		2,156		1,801
Total Operating Expenses		5,243		4,987
Operating Income (Loss)		1,823		(622	)
Interest Income		28		27
Income (Loss) Before Income Tax		1,851		(595	)
Income Tax Expense		37		3
Net Income (Loss)	$	1,814	$	(598	)
Net Income (Loss) per share, basic	$	0.11	$	(0.04	)
Weighted average shares outstanding, basic		17,117		16,364
Net Income (Loss) per share, fully diluted	$	0.10	$	(0.04	)
Weighted average shares outstanding, fully diluted		18,265		16,364

Smith Micro Third Quarter 2004 Financial Results Page 5 of 5

Smith Micro Software, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands)

	September 30,			December 31,
	2004			2003
	(unaudited)
ASSETS
Current Assets:
Cash & Cash Equivalents	$	5,737		$	3,722
Accounts Receivable, Net		1,825			741
Inventory, Net		24			22
Prepaid & Other Assets		66			204
Total Current Assets		7,652			4,689
Equipment & Improvements, Net		66			70
Intangible Assets, Net		7			40
Goodwill		1,715			1,715
Other Assets		79			73
TOTAL ASSETS	$	9,519		$	6,587
LIABILITIES & STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable	$	750		$	538
Accrued Liabilities		797			459
Total Current Liabilities		1,547			997
Common Stock		17			17
Additional Paid In Capital		26,255			25,687
Accumulated Deficit		(18,300	)		(20,114	)
Total Stockholders’ Equity		7,972			5,590
TOTAL LIABILITIES & EQUITY	$	9,519		$	6,587

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