Background
In my previous article on Smith Micro (SMSI), "Smith Micro Software: 'Leaky Equity Bucket', EPS An Illusion" I explained how headline non-GAAP EPS had not resulted in increases in equity available for distribution to shareholders. In fact, despite reporting non-GAAP earnings totaling $13.4 million over the last 3.5 years, the actual change in shareholders' equity, as a result of operating activities, had decreased by $0.9 million over that period. Well, I certainly stirred up a hornets' nest with that article, with overwhelmingly negative comments. Here are some excerpts from responses,