NEWARK, Calif., July 30, 2020 /PRNewswire/ -- Socket Mobile,
Inc. (NASDAQ: SCKT), a leading innovator of data capture and
delivery solutions for enhanced productivity, today reported
2020 second quarter results, which include the early stages of
COVID-19 impacts.
Revenue for the second quarter of 2020 was $2.7 million, a decrease of 46 percent over
revenue of $5.1 million for the same
quarter a year ago and a decrease of 36 percent sequentially from
revenue of $4.2 million in the
immediately preceding quarter. Net loss for the second
quarter of 2020 was $768,000,
compared to net income of $120,000 in
the second quarter of 2019, and net loss of $90,000 in the immediately preceding quarter.
Revenue for the six months ended June 30,
2020 was $6.9 million, a
decrease of 28 percent from revenue of $9.7
million in the same period a year ago. Net loss for
the six months ended June 30, 2020
was $858,000, compared to net income
of $132,000 for the same period a
year ago.
Gross margins on revenue for the three-month and six-month
periods ended June 30, 2020 was 50
percent and 52 percent, respectively, compared to gross margins on
revenue of 52 percent for the corresponding periods in 2019.
Operating expenses for the second quarter of 2020 were
$2.2 million, a decrease of 10
percent compared to operating expenses of $2.4 million for the same quarter a year ago, and
a decrease of 6 percent sequentially from the immediately preceding
quarter. Operating expenses for the six months ended
June 30, 2020 were $4.5 million, a decrease of 6 percent compared to
operating expenses of $4.8 million
for the same period a year ago.
"As anticipated, following the effects of the COVID-19 pandemic
on our revenues in the first quarter of 2020, we experienced
significant revenue declines in the second quarter. We expect our
business to be adversely impacted by COVID-19 for the foreseeable
future. In Q2, we received $1.06M in
PPP loan, most of which is likely to be forgiven, and implemented
cost reduction measures, enabling us to preserve cash. The Company
will continue taking actions in Q3 in response to market conditions
and operational disruptions," said Kevin
Mills, president and chief executive officer.
"It should be noted that our first and foremost concern remains
the health and safety of our employees. Accordingly, we have
implemented appropriate policies and procedures to ensure that our
operation is in as safe a manner as possible. We are maintaining a
remote work program for all functions other than manufacturing that
cannot be completed remotely. The Company has continued all
business operations and is manufacturing and delivering products to
our customers worldwide. We are dedicated to serving our customers
through this uncertain time.
"The Company continues to develop new data capture options for
its customers, so together we can enable better solutions in
emerging market segments. We launched two new DuraSled scanners for
the XCover Pro and one medical-grade DuraScan scanner on
Monday July 27th and Wednesday July 29th, respectively.
"Looking ahead, the uncertainty regarding the spread of the
COVID-19 pandemic and the timing of the economic recovery could
continue to materially impact our results of operations and cash
flows. Nonetheless, we will remain proactive in our efforts to
minimize the negative impact of COVID-19 on our business. Our
online business model, which was created a few years ago, enables
us to cope with today's new operating environment. We will continue
improving our service to our customer," 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 7255 653. From
international locations, obtain the local dial-in number through
your web browser at
http://web.meetme.net/r.aspx?p=11&a=UHlYWhfNPMzivt. A
live and replay audio webcast of the conference call can be
accessed through the link,
https://onlinexperiences.com/Launch/QReg/ShowUUID=D2BDF2C9-5AA2-4BA5-8E2A-DCE59A0494D3&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.
-- Financial tables to follow --
|
Socket Mobile,
Inc.
Summary Statements of Operations (Unaudited)
(Amounts in Thousands except per share amounts and
percentages)
|
|
|
|
|
Three months ended
June 30,
|
Six months ended June
30,
|
|
|
2020
|
2019
|
2020
|
2019
|
|
Revenue
|
$
2,715
|
$
5,060
|
$
6,936
|
$
9,688
|
|
Cost of
revenue
|
1,354
|
2,430
|
3,351
|
4,659
|
|
Gross
margin
|
1,361
|
2,630
|
3,585
|
5,029
|
|
Gross
margin percent
|
50.1%
|
52.0%
|
51.7%
|
51.9%
|
|
Research &
development
|
859
|
998
|
1,740
|
1,891
|
|
Sales &
marketing
|
722
|
771
|
1,490
|
1,527
|
|
General &
administrative
|
590
|
643
|
1,256
|
1,346
|
|
Total
operating expenses
|
2,171
|
2,412
|
4,486
|
4,764
|
|
Operating income
(loss)
|
(810)
|
218
|
(901)
|
265
|
|
Other
income
|
50
|
--
|
70
|
--
|
|
Interest income
(expense), net
|
(8)
|
(29)
|
(27)
|
(58)
|
|
Income tax (expense)
benefit
|
--
|
(69)
|
--
|
(75)
|
|
Net income
(loss)
|
$
(768)
|
$
120
|
$
(858)
|
$
132
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
Basic
|
$ (0.13)
|
$
0.02
|
$
(0.14)
|
$
0.02
|
|
Fully
diluted
|
$ (0.13)
|
$
0.02
|
$
(0.14)
|
$
0.02
|
|
Weighted average
shares outstanding:
Basic
Fully
diluted
|
6,009
6,009
|
5,999
6,272
|
6,012
6,012
|
5,970
6,204
|
|
Socket Mobile,
Inc. Condensed Summary Balance Sheets (Amounts
in Thousands)
|
|
|
|
|
|
|
June 30,
2020
(Unaudited)
|
December 31,
2019*
|
|
|
Cash
|
$
927
|
$
959
|
|
|
Accounts
receivable
|
1,770
|
2,837
|
|
|
Inventories
|
3,253
|
3,179
|
|
|
Deferred costs on
shipments to distributors
Other current
assets
|
154
255
|
234
312
|
|
|
Property and
equipment, net
|
852
|
864
|
|
|
Goodwill
|
4,427
|
4,427
|
|
|
Deferred tax
assets
|
5,507
|
5,507
|
|
|
Operating leases
capitalized
Other
assets
|
795
181
|
937
202
|
|
|
Total
assets
|
$
18,121
|
$
19,458
|
|
|
Accounts payable and
accrued liabilities
|
$
2,290
|
$
2,651
|
|
|
Bank line of
credit
Notes
payable
|
450
1,292
|
1,413
333
|
|
|
Deferred revenue on
shipments to distributors
|
433
|
611
|
|
|
Deferred service
revenue
|
61
|
74
|
|
|
Operating lease
liabilities
Other
liabilities
|
964
--
|
1,134
8
|
|
|
Total
liabilities
|
5,490
|
6,224
|
|
|
Common
stock
|
61,328
|
61,073
|
|
|
Accumulated
deficit
|
(48,697)
|
(47,839)
|
|
|
Total
equity
|
12,631
|
13,234
|
|
|
Total liabilities and
equity
|
$
18,121
|
$
19,458
|
|
|
|
*
|
Derived from audited
financial statements.
|
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SOURCE Socket Mobile, Inc.