NEWARK, Calif., April 29, 2020 /PRNewswire/ -- Socket
Mobile, Inc. (NASDAQ: SCKT), a leading innovator of data capture
and delivery solutions for enhanced productivity,
today reported 2020 first quarter results, which include the
early stages of COVID-19 impacts.
Revenue for the first quarter of 2020 was $4.2 million, a 9 percent decrease compared to
revenue of $4.6 million for the first
quarter of 2019. Gross profit margins for the first quarter of 2020
was 52.7 percent and 51.8 percent in the first quarter of 2019.
Operating expenses for the first quarter of 2020 was $2.31 million and $2.35
million for the first quarter of 2019. Net loss for the
first quarter of 2020 was $90,000, or
($0.01) per share, compared to a net
income of $12,000, or $0.00 per share, in the first quarter of
2019.
"Our Q1 results were adversely impacted by the COVID -19
pandemic, most significantly in March
2020, and the impact has continued into Q2. Over 70% of our
business is related to retail-type activities, so we have
experienced a significant decrease in demand for our products due
to widespread business closures. We continue to have some demand
from those conducting essential services. During this challenging
time, we are focused on protecting all of Socket Mobile's
stakeholders," said Kevin Mills,
president and chief executive officer.
"We are tightly managing our liquidity for our operating needs.
In addition to leveraging the revolving credit facilities, we have
received loan proceeds of approximately $1.0
million under the Paycheck Protection Program to safeguard
our employees."
"Socket Mobile is better positioned to cope with today's new
operating environment as we moved our sales to an online model a
few years ago, and in 2019 almost 100% of our sales were online
sales. In addition, we expect the data capture requirement to
evolve to meet many new requirements to document, track and trace
using Apple and other consumer devices. We remain in a good
position to support these requirements," Mills concluded.
Conference Call
Management of Socket Mobile will hold a conference call and web
cast 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 call is (888) 424-8151 passcode 7491 458. From
international locations, obtain the local dial-in number through
your web browser at
http://web.meetme.net/r.aspx?p=12&a=UtdSjbnMhgOjRD
A live and replay audio webcast of the conference call can be
accessed through the link,
https://onlinexperiences.com/Launch/QReg/ShowUUID=099EBC8A-FE06-4197-A0E2-2F208F10D955&LangLocaleID=1033
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
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,
Twitter @socketmobile and on our sockettalk blog.
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 Mobile
Investor Contact:
|
Lynn Zhao
|
Chief Financial
Officer
|
510-933-3016
|
lynn@socketmobile.com
|
Socket is a registered trademark of Socket Mobile. All
other trademarks and trade names contained herein may be those of
their respective owners.
© 2020, Socket Mobile, Inc. All rights reserved.
|
Socket Mobile,
Inc.
Summary Statements of Operations (Unaudited)
(Amounts in Thousands except per share amounts and
percentages)
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
2020
|
2019
|
|
|
Revenue
|
$
4,221
|
$ 4,629
|
|
|
Cost of
revenue
|
1,997
|
2,229
|
|
|
Gross
profit
|
2,224
|
2,400
|
|
|
Gross
profit margin percent
|
52.7%
|
51.8%
|
|
|
Research &
development
|
881
|
894
|
|
|
Sales &
marketing
|
768
|
756
|
|
|
General &
administrative
|
666
|
703
|
|
|
Total
operating expenses
|
2,315
|
2,353
|
|
|
Operating Income (Loss)
|
(91)
|
47
|
|
|
Other
income
|
20
|
--
|
|
|
Interest (expense),
net
|
(19)
|
(28)
|
|
|
Deferred income tax
benefit (expense)
|
--
|
(7)
|
|
|
Net income
(loss)
|
$
(90)
|
$
12
|
|
|
Net income (loss) per
share:
|
|
|
|
|
Basic
|
$
(0.01)
|
$
0.00
|
|
|
Fully
Diluted
|
$
(0.01)
|
$
0.00
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
Basic
|
6,014
|
5,940
|
|
|
Fully
Diluted
|
6,014
|
6,134
|
|
|
Socket Mobile,
Inc. Condensed Summary Balance Sheets (Amounts
in Thousands)
|
|
|
|
|
March 31,
2020
(Unaudited)
|
December 31,
2019*
|
|
Cash
|
$
1,143
|
$
959
|
|
Accounts
receivable
|
2,814
|
2,837
|
|
Inventories
|
3,295
|
3,179
|
|
Deferred costs on
shipments to distributors
|
217
|
234
|
|
Other current
assets
|
306
|
312
|
|
Property and
equipment, net
|
883
|
864
|
|
Goodwill
|
4,427
|
4,427
|
|
Deferred tax
assets
|
5,507
|
5,507
|
|
Operating leases
capitalized
|
851
|
937
|
|
Other
assets
|
192
|
202
|
|
Total
assets
|
$
19,635
|
$
19,458
|
|
Accounts payable and
accrued liabilities
|
$
2,531
|
$
2,651
|
|
Bank line of
credit
|
1,939
|
1,413
|
|
Term loan
|
208
|
333
|
|
Deferred revenue on
shipments to distributors
|
585
|
611
|
|
Deferred service
revenue
|
66
|
74
|
|
Operating lease
liabilities
|
1,034
|
1,134
|
|
Other
liabilities
|
4
|
8
|
|
Total
liabilities
|
6,367
|
6,224
|
|
Common
stock
|
61,197
|
61,073
|
|
Accumulated
deficit
|
(47,929)
|
(47,839)
|
|
Total
equity
|
13,268
|
13,234
|
|
Total liabilities and
equity
|
$
19,635
|
$
19,458
|
|
|
*
|
Derived from audited
financial statements.
|
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SOURCE Socket Mobile, Inc.