NEWARK, Calif., April 27, 2017 /PRNewswire/ -- Socket
Mobile, Inc. (NASDAQ: SCKT), a leading innovator of data capture
and delivery solutions for enhanced productivity, today reported
profitable operating results and record cordless scanning revenue
for the first quarter ended March 31,
2017.
Revenue for the first quarter of 2017 was $5.6 million, an 11 percent increase compared to
revenue of $5.0 million for the same
quarter a year ago. Cordless barcode scanning revenue for the first
quarter of 2017 was $5.5 million, a
39 percent increase year over year, and comprised 99% of total
first quarter revenue, compared to barcode scanning revenue of
$4.0 million, or 79 percent of total
revenue of $5.0 million, for the same
quarter of 2016.
Net operating income, consisting of net income before interest
and taxes, was $668,000 in the first
quarter of 2017, an 11 percent increase compared to net operating
income of $600,000 in the same
quarter a year ago.
Net income for the first quarter of 2017 was $386,000, or $0.07
per share, compared to net income of $548,000, or $0.10
per share, in the same quarter a year ago. The decrease was due to
a change in the application of tax accounting rules. Income tax
expense for the 2017 full year will be covered primarily by net
operating loss carryovers with minimal impact on cash.
Gross profit margin for the first quarter of 2017 increased to
51.8 percent, compared to 49.7 percent for the same quarter a year
ago.
Operating expenses for the first quarter of 2017 were
$2.2 million, compared to operating
expenses of $1.9 million for the same
quarter a year ago, reflecting added development and production
resources and higher operating costs associated with growth.
Kevin Mills, president and chief
executive officer, commented, "Growth in sales of our cordless
barcode scanners continues to be driven by the deployment of
business applications that require barcode scanning, with mobile
point of sale (mPOS) continuing to be the primary driver.
mPOS remains a large and underserved market and is increasingly
being addressed by many venture capital funded application
developers.
"Workforce mobilization around enterprise-issued smartphones and
tablets running business applications is creating significant
worldwide growth opportunities. We are also seeing developer
activity increasing internationally, as well as in other mobile
business application areas, including asset management and
transportation, that represent emerging growth areas for Socket
Mobile.
"Socket Mobile offers a wide range of barcode scanner choices
for mobile application developers that enable them to support many
different scanning requirements and solutions. We're expanding our
DuraCase offerings to add additional smartphones. We've
released to application developers our durable Near Field
Communication reader/writer, our model D600. The D600
captures data from RFID tags or from smartphones with Near Field
Communications capabilities including identification, tickets and
loyalty information. We expect this product to become a contributor
to our revenue growth starting in 2018.
"As smartphone and tablet technology continues to evolve, we
remain focused on attracting and supporting mobile application
developers with data capture products designed for the mobile
markets they serve and on achieving continued growth and
profitability," Mills concluded.
Conference Call
Management of Socket Mobile will hold a conference call and webcast
today at 2 PM Pacific (5 PM Eastern) to discuss the quarterly results
and outlook for the future. The dial-in number to access the
call from the U.S. is (888) 424-8151 using passcode 8483007.
International dial-in numbers may be obtained through the
following URL:
http://web.meetme.net/r.aspx?p=11&a=UpGyIwOXyWpTnh
A live and replay audio webcast of the conference call can be
accessed through a link on Socket Mobile's website at
www.socketmobile.com. From the home page, select "About
Socket"/"Investor Relations"/ and "Conference Calls and
Events."
About Socket Mobile:
Founded in 1992, Socket Mobile is
a leading innovator of data capture and delivery solutions for
enhanced productivity in retail point of sale, field service,
transportation, manufacturing and other mobile markets. Socket
Mobile's revenue is primarily driven by the deployment of third
party barcode enabled mobile applications that integrate Socket
Mobile's cordless barcode scanners. Socket Mobile has a robust
network of thousands of developers registered to use its software
developer's kit to add sophisticated barcode scanning to mobile
applications. Socket Mobile is headquartered in Newark, Calif. and can be reached at
+1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile on
Facebook and Twitter @socketmobile and subscribe to
SocketTalk, the company's official blog.
Investor Relations
Contact:
|
Socket Investor
Contact:
|
Todd Kehrli / Jim
Byers
|
Dave
Dunlap
|
MKR Group,
Inc.
|
Chief Financial
Officer
|
323-468-2300
|
510-933-3035
|
sckt@mkr-group.com
|
dave@socketmobile.com
|
Forward-Looking Statements
This press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Such
forward-looking statements include, but are not limited to,
statements regarding new mobile computer and data collection
products, including details on the timing, distribution and market
acceptance of the products, and statements predicting trends, sales
and market conditions and opportunities in the markets in which we
sell our products. Such statements involve risks and
uncertainties, and actual results could differ materially from the
results anticipated in such forward-looking statements as a result
of a number of factors, including, but not limited to, the risk
that our new products may be delayed or not rollout as predicted,
if ever, due to technological, market, or financial factors,
including the availability of necessary working capital, the risk
that market acceptance and sales opportunities may not happen as
anticipated, the risk that our application partners and current
distribution channels may choose not to distribute the new products
or may not be successful in doing so, the risk that acceptance of
our new products in vertical application markets may not happen as
anticipated, and other risks described in our most recent Form 10-K
and 10-Q reports filed with the Securities and Exchange
Commission.
Socket is a registered trademark of Socket Mobile. All
other trademarks and trade names contained herein may be those of
their respective owners.
© 2017, Socket Mobile, Inc. All rights reserved.
-- Financial tables to follow --
Socket Mobile,
Inc.
|
Condensed Summary
Statements of Operations (Unaudited)
|
(Amounts in
Thousands except per share amounts and percentages)
|
|
|
|
Three months ended
March 31,
|
|
2017
|
2016
|
Revenue
|
$
5,622
|
$
5,044
|
Cost of
revenue
|
2,709
|
2,538
|
Gross
profit
|
2,913
|
2,506
|
Gross
profit percent
|
51.8%
|
49.7%
|
Research &
development
|
797
|
657
|
Sales &
marketing
|
759
|
687
|
General &
administrative
|
689
|
562
|
Total
operating expenses
|
2,245
|
1,906
|
Operating Income
|
668
|
600
|
Interest (income)
expense, net
|
30
|
44
|
Income tax
expense*
|
252
|
8
|
Net income
|
$
386
|
$
548
|
Net income per
share:
Basic
Fully
Diluted
|
$ 0.07
$ 0.05
|
$ 0.10
$ 0.09
|
Weighted average
shares outstanding:
Basic
Fully
Diluted
|
5,912
7,771
|
5,646
6,504
|
|
|
|
*Deferred tax asset
valuation allowance in effect for 2016
|
Socket Mobile,
Inc.
|
Condensed Summary
Balance Sheets
|
(Amounts in
Thousands)
|
|
|
|
|
March 31,
2017 (Unaudited)
|
December 31,
2016*
|
Cash
|
$
1,622
|
$
1,319
|
Accounts
receivable
|
3,355
|
2,867
|
Inventories
|
1,842
|
1,537
|
Other current
assets
|
539
|
260
|
Property and
equipment, net
|
569
|
564
|
Goodwill
|
4,427
|
4,427
|
Deferred tax
assets
|
9,017
|
9,589
|
Other
assets
|
76
|
76
|
Total
assets
|
$
21,447
|
$
20,639
|
Accounts payable and
accrued liabilities
|
$
2,483
|
$
2,214
|
Convertible notes
payable
Notes
payable
Deferred income on
shipments to distributors
|
753
|
753
|
Deferred income on
shipments to distributors
|
478
|
1,063
|
Deferred service
revenue
|
67
|
73
|
Other
liabilities
|
359
|
366
|
Total
liabilities
|
4,140
|
4,469
|
Common
stock
|
63,144
|
62,896
|
Accumulated
deficit
|
(45,837)
|
(46,726)
|
Total
equity
|
17,307
|
16,170
|
Total liabilities and
equity
|
$
21,447
|
$
20,639
|
|
|
|
*Derived from audited
financial statements.
|
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SOURCE Socket Mobile