Smith Micro Software Inc., which is an Aliso-Viejo based cell phone software developer, reported a reduction in share prices on Thursday. This happened as a result of the fourth-quarter prospects announced by the company on Wednesday. The results have lowered the analyst’s expectations from the company. The share prices were lowered down by 20% to approximately $225 million on Wall Street.

The company reduced its sales expectations at about $105 million to $110 million, which is low from what the company had earlier announced. The analysts were hoping for average sales of around $111 million. Chief Executive Bill Smith said that the outlook for the fourth-quarter has been lowered down due to the uncertainty surrounding the economic environment.

The sales of Smith Micro for the third-quarter were reported at $28 million, though Wall Street analysts were hoping for $29 million of sales. The profits were a little high from the previous year at around $7 million which beat the analyst’s expectations of $6 million. The reported profit did not include one-time costs in it. Only last month, the company had bought Core Mobility Inc. for cash and stock of $10 million. Core Mobility Inc. is a Mountain View-based company which develops software for smart phones.

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