Socket Mobile Reports First Quarter Revenue Growth and Profitable Operating Results

Date : 04/24/2019 @ 8:01PM
Source : PR Newswire (US)
Stock : Socket Mobile Inc (SCKT)
Quote : 1.65  0.0 (0.00%) @ 9:00AM

Socket Mobile Reports First Quarter Revenue Growth and Profitable Operating Results

Socket Mobile (NASDAQ:SCKT)
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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.

 

Cision View original content:http://www.prnewswire.com/news-releases/socket-mobile-reports-first-quarter-revenue-growth-and-profitable-operating-results-300836888.html

SOURCE Socket Mobile, Inc.

Copyright 2019 PR Newswire

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