NEWARK, Calif., July 26, 2018 /PRNewswire/ -- Socket Mobile,
Inc. (NASDAQ: SCKT), a leading innovator of data capture and
delivery solutions for enhanced productivity, today reported
financial results for the three and six months ended June 30, 2018.
Revenue for the second quarter of 2018 was $4.2 million, a decrease of 28 percent over
revenue of $5.8 million for the same
quarter a year ago and an increase of five percent sequentially
from revenue of $4.0 million in the
immediately preceding quarter. Revenue for the six months
ended June 30, 2018 was $8.2 million, a decrease of 28 percent compared
to revenue of $11.4 million for the
same period a year ago. Revenue in 2017 included shipments of
large cordless barcode scanner orders to two customers of
$0.7 million and $1.9 million for the three and six month periods
ended June 30, 2017, respectively,
whereas shipments in the first half of 2018 were primarily
fulfilling smaller unit orders.
Net loss for the second quarter of 2018 was $138,000 or $0.02
per share, compared to net income for the second quarter of 2017 of
$490,000 or $0.07 per fully diluted share. Net loss for the
six months ended June 30, 2018 was
$363,000, or $0.06 per share, compared to net income of
$876,000 or $0.12 per fully diluted share for the same period
in 2017.
Gross margins on revenue for the three and six month periods
ended June 30, 2018 were 50.9 percent
and 51.3 percent of revenue, respectively, compared to 53.6 percent
and 52.7 percent, respectively, for the corresponding periods in
2017. The lower margins in 2018 reflect absorption of fixed
manufacturing costs over a smaller number of units sold.
Operating expenses for the second quarter of 2018 were
$2.3 million compared to operating
expenses in the second quarter of 2017 of $2.2 million. Operating expenses for the six
months ended June 30, 2018 were
$4.6 million, an increase of four
percent compared to operating expenses of $4.4 million for the same period a year ago.
The Company's balance sheet at June 30,
2018 included cash of $1.3
million following the pay down of a bank term loan to
$1.0 million and pay down of total
borrowings, consisting of the term loan and a revolving line of
credit, to $2.5 million.
Kevin Mills, president and chief
executive officer, commented, "We commenced shipping our new
SocketScan line of standard cordless barcode scanners in late
April 2018. Our SocketScan products
improve the user experience with new features including status
lights, extended battery life, field upgradable batteries, and a
new easy to use charging station. Our many application partners and
resellers are evaluating the new products and on completion, are
expected to update their web pages and recommend their use,
allowing us to complete the transition. Our feedback from these
many evaluations has been very positive.
"For our registered developers, we've improved our software
developer kit with our Capture SDK. The SDK includes developer
tools such as Xamarin used by many in the corporate application
developer community. We expect to experience growth in our
application developer base as we are now able to support this
community. New applications are a key driver of future revenue
growth.
"VDC Research last fall recognized our worldwide leadership
position in companion barcode scanning for mobile applications
running on smart phones and tablets. Our new hardware
products and developer tools will enable us to maintain this
leadership position," Mills concluded.
Conference Call
Management of Socket Mobile will hold a conference call today at
2 P.M. PT to discuss the quarterly
results and outlook for the future. The dial-in number to
access the call is (888) 424-8151 from within the U.S. Passcode is
8089174. From international locations, obtain the local
dial-in number through your web browser at
https://www.conferenceplus.com/AlternateNumbers/alternatenumbers.aspx?100812&t=A&o=UzzVJkRHGcPDKr.
The call will also be carried live and available via replay through
a link on Socket Mobile's website at www.socketmobile.com. From the
home page, choose "About Socket"/"Investor Relations"/"Conference
Calls and Events." A transcript will be posted on the
Company's website within a few days of the call.
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 and
subscribe to SocketTalk the company's official 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 mobile computer and data
collection products, including details on the timing, distribution
and market acceptance of new 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:
Dave Dunlap
Chief Financial Officer
510-933-3035
dave@socketmobile.com
Socket, SocketScan and DuraScan are registered
trademarks of Socket Mobile. All other trademarks and trade names
contained herein may be those of their respective
owners.
© 2018, 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)
|
|
|
Three months ended
June 30,
|
Six months ended June
30,
|
|
2018
|
2017
|
2018
|
2017
|
Revenue
|
$
4,192
|
$
5,806
|
$
8,173
|
$
11,428
|
Cost of
revenue
|
2,060
|
2,696
|
3,977
|
5,405
|
Gross
margin
|
2,132
|
3,110
|
4,196
|
6,023
|
Gross
margin percent
|
50.9%
|
53.6%
|
51.3%
|
52.7%
|
Research &
development
|
917
|
859
|
1,864
|
1,656
|
Sales &
marketing
|
734
|
742
|
1,471
|
1,501
|
General &
administrative
|
625
|
601
|
1,290
|
1,290
|
Total
operating expenses
|
2,276
|
2,202
|
4,625
|
4,447
|
Operating income
(loss)
|
(144)
|
908
|
(429)
|
1,576
|
Interest income
(expense), net
|
(48)
|
(31)
|
(68)
|
(60)
|
Income tax (expense)
benefit
|
54
|
(387)
|
134
|
(640)
|
Net income
(loss)
|
$
(138)
|
$
490
|
$
(363)
|
$
876
|
Earnings (loss) per
share:
|
|
|
|
|
Basic
|
$ (0.02)
|
$
0.08
|
$
(0.06)
|
$
0.15
|
Fully
diluted
|
$ (0.02)
|
$
0.07
|
$
(0.06)
|
$
0.12
|
Weighted average
shares outstanding: Basic
|
5,880
|
5,965
|
6,310
|
5,939
|
Fully
diluted
|
5,880
|
7,786
|
6,310
|
7,765
|
Socket Mobile,
Inc.
|
Condensed Summary
Balance Sheets
|
(Amounts in
Thousands)
|
|
|
June 30,
2018
(Unaudited)
|
December 31,
2017*
|
Cash
|
$
1,296
|
$
3,380
|
Accounts receivable,
net
|
2,309
|
2,687
|
Inventories,
net
|
2,213
|
2,198
|
Deferred cost on
shipments to distributors
|
181
|
204
|
Other current
assets
|
298
|
386
|
Deferred tax
assets
|
5,771
|
5,637
|
Property and
equipment, net
|
749
|
663
|
Goodwill
|
4,427
|
4,427
|
Other
assets
|
257
|
272
|
Total
assets
|
$
17,501
|
$
19,854
|
Accounts payable and
accrued liabilities
|
$
1,807
|
$
1,743
|
Bank revolving line
of credit
|
1,535
|
--
|
Bank term
loan
|
1,000
|
--
|
Deferred revenue on
shipments to distributors
|
441
|
493
|
Deferred service
revenue
|
60
|
61
|
Other
liabilities
|
302
|
327
|
Total
liabilities
|
5,145
|
2,624
|
Common stock and
additional paid-in capital
|
60,273
|
64,784
|
Accumulated
deficit
|
(47,917)
|
(47,554)
|
Total stockholders'
equity
|
12,356
|
17,230
|
Total liabilities and
equity
|
$
17,501
|
$
19,854
|
|
*Derived from audited
financial statements.
|
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SOURCE Socket Mobile, Inc.