NEWARK, Calif., April 24, 2019 /PRNewswire/ -- Socket Mobile,
Inc. (NASDAQ: SCKT), a leading innovator of data capture and
delivery solutions for enhanced productivity, today reported
revenue growth and profitable operating results for the first
quarter ended March 31, 2019.
Revenue for the first quarter of 2019 was $4.6 million, a 16 percent increase compared to
revenue of $4.0 million for the same
quarter a year ago and an increase of 12 percent compared to the
previous quarter's revenue of $4.1
million.
Gross profit margins for both the first quarter of 2019 and 2018
were 51.8 percent. Gross profit margins were 50.3 percent in the
immediately preceding quarter.
Operating expenses for both the first quarter of 2019 and 2018
were $2.35 million. Operating
expenses for the immediately preceding quarter were $2.2 million.
Net income for the first quarter of 2019 was $12,000, or $0.00
per share, compared to a net loss of ($225,000), or ($0.03) per share, in the same quarter a year ago
and compared to a net loss of ($163,000) in the immediately preceding quarter.
EBITDA (earnings before interest, taxes, depreciation and
amortization) was $269,000, or
$0.05 per share in the first quarter
of 2019 compared to a loss of ($82,000) or ($0.01
per share) in the first quarter a year ago and to $117,000 or $0.02
per share in the immediately preceding quarter.
Kevin Mills, president and chief
executive officer, commented, "We are pleased to return to
profitability. 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 growth driver. The mPOS
market remains a large and underserved small business market and is
increasingly being addressed by mPOS software applications running
on iPad and Android tablets. We are also experiencing growth in
mobile applications for commercial services, transportation and
health care.
"Our SocketScan product refresh transition is essentially
complete and our new products are being well accepted. Our units
sold have increased in Q1 over 20 percent compared to the same
quarter a year ago. Our new SocketScan products offer improved
performance at similar or lower pricing. With our newest products
readily available, we are well positioned to support the data
capture needs of the growing mobile applications markets.
"We continue to strengthen our application developer tools,
enabling easy installation of our advanced data capture software
into applications running on Apple, Android or Windows mobile
platforms.
"We've updated our SocketCare Extended Warranty program to
provide cost-effective extensions of our standard warranty for
three to five years and coverage against accidental breakage.
"Our new hardware products and developer tools enable us to
sustain a strong leadership position in companion scanning," 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
7920004. From international locations, obtain the local
dial-in number through your web browser
at http://web.meetme.net/r.aspx?p=11&a=UUnKpgnTkpnMWq 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:
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 reader/writers. Mobile Applications
servicing the specialty retailer, field service, 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 Newark, Calif. and can be reached at
+1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile
on Facebook and Twitter @socketmobile.
Socket Investor Contact:
Dave Dunlap
Chief Financial Officer
510-933-3035
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, the Socket logo, DuraScan and SocketScan are
registered trademarks of Socket Mobile. All other trademarks and
trade names contained herein may be those of their respective
owners.
© 2019, Socket Mobile, Inc. All rights reserved.
-- Financial tables to follow --
Socket Mobile,
Inc.
|
Summary Statements
of Operations (Unaudited)
|
(Amounts in
Thousands except per share amounts and percentages)
|
|
|
Three months ended
March 31,
|
|
2019
|
2018
|
Revenue
|
$
4,629
|
$ 3,981
|
Cost of
revenue
|
2,229
|
1,917
|
Gross
profit
|
2,400
|
2,064
|
Gross
profit margin percent
|
51.8%
|
51.8%
|
Research &
development
|
894
|
947
|
Sales &
marketing
|
756
|
738
|
General &
administrative
|
703
|
664
|
Total
operating expenses
|
2,353
|
2,349
|
Operating Income (Loss)
|
47
|
(285)
|
Interest (expense),
net
|
(28)
|
(20)
|
Deferred income tax
benefit (expense)
|
(7)
|
80
|
Net income
(loss)
|
$
12
|
$ (225)
|
|
|
|
Net income (loss) per
share:
|
|
|
Basic
|
$
0.00
|
$ (0.03)
|
Fully
Diluted
|
$
0.00
|
$ (0.03)
|
|
|
|
Weighted average
shares outstanding:
|
|
|
Basic
|
5,940
|
6,744
|
Fully
Diluted
|
6,134
|
6,744
|
Reconciliation of
GAAP Net Loss to Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) (Unaudited)
|
|
Three months
ended March 31,
|
|
2019
|
2018
|
Net income (loss)
GAAP
|
$
12
|
$
(225)
|
Interest expense
(income), net
|
28
|
20
|
Deferred Income tax
expense (benefit)
|
7
|
(80)
|
Depreciation and
amortization
|
100
|
91
|
Stock compensation
expense
|
122
|
112
|
Net income (loss)
EBITDA
|
$
269
|
$
(82)
|
Socket Mobile,
Inc.
|
Condensed Summary
Balance Sheets
|
(Amounts in
Thousands)
|
|
|
March 31,
2019
(Unaudited)
|
December 31,
2018*
|
Cash
|
$
929
|
$
1,085
|
Accounts
receivable
|
2,964
|
2,367
|
Inventories
|
2,496
|
2,272
|
Deferred costs on
shipments to distributors
|
196
|
165
|
Other current
assets
|
368
|
308
|
Property and
equipment, net
|
699
|
689
|
Goodwill
|
4,427
|
4,427
|
Deferred tax
assets
|
5,774
|
5,781
|
Operating leases
capitalized
|
1,186
|
1,266
|
Other
assets
|
226
|
237
|
Total
assets
|
$
19,265
|
$
18,597
|
Accounts payable and
accrued liabilities
|
$
2,228
|
$
2,046
|
Bank line of
credit
|
1,796
|
1,317
|
Term loan
|
708
|
833
|
Deferred revenue on
shipments to distributors
|
465
|
397
|
Deferred service
revenue
|
88
|
65
|
Operating lease
liabilities
|
1,422
|
1,511
|
Other
liabilities
|
20
|
23
|
Total
liabilities
|
6,727
|
6,192
|
Common
stock
|
60,651
|
60,530
|
Accumulated
deficit
|
(48,113)
|
(48,125)
|
Total
equity
|
12,538
|
12,405
|
Total liabilities and
equity
|
$
19,265
|
$
18,597
|
|
*Derived from audited
financial statements.
|
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SOURCE Socket Mobile, Inc.