Why Smith Micro Software (SMSI) Shares Are Plunging Today - Smith Micro Software (NASDAQ:SMSI)

A U.S.-based Tier 1 carrier customer terminated the contract for Smith Micro Software, Inc's SMSI family safety solution effective June 30, 2023.
Smith Micro Software remains obligated to deliver service under the agreement for a transition period of up to 180 days beyond June 30, 2023.
The company expects to take action to reduce expenses associated with the affected customer agreement and reallocate specific resources to other Tier 1 U.S. carrier customers and its customers outside of the U.S.
"We were surprised to have received this notice from our customer, and though we are disappointed, we believe we have positioned the Company well over the past few years to diversify our overall client base," said William W. Smith Jr., President, and CEO of Smith Micro.
"We will also accelerate the cost saving initiative that began last year, to better align our cost structure model as we look to return the Company to growth and profitability," Smith added.
Price Action: SMSI shares traded lower by 44% at $1.40 on the last check Monday.

Why Smith Micro Software Shares Are Plunging Today