FREMONT,
Calif., July 31, 2024 /PRNewswire/ -- Socket
Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture and
delivery solutions for enhanced workplace productivity, today
reported financial results that are determined in accordance with
generally accepted accounting principles in the United States ("GAAP") for the three and
six months ended June 30, 2024.
Second Quarter 2024 Financial Highlights:
- Revenue of $5.08 million,
reflecting a 0.7% decrease compared to $5.12
million for the prior year's quarter, and a 2.1% sequential
increase compared to $4.98 million
for the preceding quarter.
- Gross margin of 50.9% versus 51.8% in the prior year's quarter
and 50.3% in the preceding quarter.
- Operating expenses were $3.1
million, reflecting a 6% increase compared to the prior
year's period and increased 4% compared to $3.0 million in the preceding quarter.
- Operating loss amounted to $535,000, an increase of 84% from $292,000 in the prior year's quarter, and an
increase of 10% from a loss of $485,000 in the preceding quarter.
- Cash balance on June 30, 2024 was
approximately $2.1M compared to
$2.8M at both the end of 2023 and the
prior quarter.
"The weakness of the specialty retail sector, our primary
revenue source, presented significant challenges during Q2. This
resulted in lower-than-anticipated revenue for the quarter and
impacted our overall financial performance," said Kevin Mills, President, and Chief Executive
Officer.
"Anticipating the continued challenges and uncertainties in the
specialty retail sector, we are proactively investing in and
promoting new products while also exploring opportunities beyond
this market. Our advanced SocketCam C860 app exemplifies this
strategy by turning any mobile device into a robust scanning
solution, capable of tackling even damaged or difficult-to-read
barcodes in adverse lighting conditions. Recently, we have expanded
C860 functionality to integrate with Flutter-based mobile apps.
This software solution, C860, is available through in-app
purchases. Additionally, our ultra-rugged XtremeScan and DuraScan
Wear hands free products offer versatile barcode scanning
capabilities in rigorous environments like warehousing,
manufacturing, and distribution. By investing in and promoting
these solutions, we aim to drive company growth across new markets
and reduce our dependence on the retail sector," continued Mr.
Mills.
"We look forward to your participation in the upcoming
conference call, where we will provide an update on the status of
market traction of our new products." concluded Mr. Mills.
Conference Call
Management of Socket Mobile will hold
a conference call today at 2 P.M.
Pacific (5 P.M. Eastern) to discuss
the quarterly results and outlook for the future. The dial-in
number to access the live conference call is (800)
237-1091 toll-free from within the U.S. or (848)
488-9280 (toll).
About Socket Mobile, Inc.
Socket Mobile is a leading
provider of data capture and delivery solutions for enhanced
productivity in workforce mobilization. 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 and contactless readers/writers. Mobile Applications
servicing the specialty retailer, field service, digital ID,
transportation, and manufacturing markets are the primary revenue
drivers. Socket Mobile has a network of thousands of developers who
use its software developer tools to add sophisticated data capture
to their mobile applications. Socket Mobile is headquartered in
Fremont, Calif., and can be
reached at +1-510-933-3000 or www.socketmobile.com. Follow Socket
Mobile on LinkedIn, Twitter, and keep up with our latest
News and Updates.
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, 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 Mobile Investor Contact:
Lynn Zhao
Chief Financial Officer
510-933-3016
lynn@socketmobile.com
Socket Mobile is a registered trademark of Socket Mobile.
All other trademarks and trade names contained herein may be those
of their respective owners.
© 2024, Socket Mobile, Inc. All rights reserved.
|
Socket Mobile,
Inc.
|
|
Condensed Summary
Statements of Operations (Unaudited)
|
|
(Amounts in
thousands except per share amounts)
|
|
|
Three months ended June
30,
|
Six months ended June
30,
|
|
2024
|
2023
|
2024
|
2023
|
|
Revenue
|
$
5,081
|
$
5,117
|
$
10,059
|
$
9,429
|
|
Cost of
revenue
|
2,497
|
2,466
|
4,970
|
4,705
|
|
Gross margin
|
2,584
|
2,651
|
5,089
|
4,724
|
|
Gross
margin percent
|
50.9 %
|
51.8 %
|
50.6 %
|
50.1 %
|
|
Research &
development
|
1,232
|
1,190
|
2,440
|
2,437
|
|
Sales &
marketing
|
1,154
|
1,004
|
2,185
|
2,011
|
|
General &
administrative
|
733
|
749
|
1,484
|
1,523
|
|
Total
operating expenses
|
3,119
|
2,943
|
6,109
|
5,971
|
|
Operating income
(loss)
|
(535)
|
(292)
|
(1,020)
|
(1,247)
|
|
Interest expense,
net
|
(73)
|
(55)
|
(145)
|
(93)
|
|
Income tax benefit
(expense)
|
--
|
(166)
|
--
|
(166)
|
|
Net income
(loss)
|
$
(608)
|
$
(513)
|
(1,165)
|
(1,506)
|
|
Net income (loss) per
share:
|
|
|
|
|
|
Basic
|
$
(0.08)
|
$
(0.06)
|
$
(0.16)
|
$
(0.18)
|
|
Fully
diluted
|
$
(0.08)
|
$
(0.06)
|
$
(0.16)
|
$
(0.18)
|
|
Weighted average shares
outstanding:
Basic
Fully
diluted
|
7,572
7,572
|
7,164
7,164
|
7,511
7,511
|
7,135
7,135
|
|
Socket Mobile,
Inc.
|
|
Condensed Summary
Balance Sheets
|
|
(Amounts in
Thousands)
|
|
|
(Unaudited)
June 30,
2024
|
December 31,
2023*
|
|
Cash
|
$
2,117
|
$ 2,827
|
|
Accounts
receivable
|
2,550
|
1,700
|
|
Inventories
|
5,186
|
5,409
|
|
Deferred costs on
shipments to distributors
Other current
assets
|
562
247
|
323
441
|
|
Property and equipment,
net
|
2,671
|
3,033
|
|
Deferred tax
assets
|
10,112
|
10,112
|
|
Intangible assets,
net
|
1,496
|
1,559
|
|
Operating leases
right-of-use assets
|
2,853
|
3,088
|
|
Other long-term
assets
|
249
|
250
|
|
Total assets
|
$ 28,043
|
$
28,742
|
|
Accounts payable and
accrued liabilities
|
$
2,537
|
$ 2,185
|
|
Subordinated
convertible notes payable, net of discount
|
150
|
150
|
|
Subordinated
convertible notes payable, net of discount-related party
|
2,839
|
2,836
|
|
Deferred revenue on
shipments to distributors
|
592
|
826
|
|
Deferred service
revenue
Operating lease liabilities
|
34
3,065
|
33
3,292
|
|
Total
liabilities
|
9,217
|
9,322
|
|
Common stock
|
68,962
|
68,391
|
|
Accumulated
deficit
|
(49,098)
|
(47,933)
|
|
Treasury
stock
|
(1,038)
|
(1,038)
|
|
Total equity
|
18,826
|
19,420
|
|
Total liabilities and
equity
|
$
28,043
|
$
28,742
|
|
*Derived from audited
financial statements.
|
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SOURCE Socket Mobile, Inc.